Among recent income-generating real estate, investor interest is heating up in newly supplied commercial spaces in emerging commercial districts.
In stabilized commercial areas of old downtowns, the market favors sellers, and sellers have no reason to sell high-yield commercial properties cheaply, making it difficult for buyers to achieve desired returns by purchasing such properties. However, there are many opportunities in emerging commercial districts. Not only can investors secure prime commercial spaces early, but as the area gradually takes shape, real estate values also rise, allowing for potential capital gains.
Experts unanimously advise paying special attention to initial sales of commercial spaces in emerging commercial districts. The biggest advantage of these spaces is the first-mover effect. Securing these spaces early means that similar businesses are less likely to enter later, and before the commercial district is fully established, these spaces can attract attention for a long period and benefit from advertising effects.
A real estate industry expert stated, “Entering after the commercial district has stabilized and become active often means higher sale prices, which can significantly reduce actual investment returns. If the future value is judged to be high, it is necessary to actively invest from the early stages.”
Recently, the Seonhwa-dong area in Jung-gu, Daejeon Metropolitan City, has been emerging as such an emerging commercial district. The Seonhwa-dong development zone, formerly a motel district, is scheduled to begin occupancy of ultra-high-rise apartments up to 49 floors starting May next year. It is attracting the full attention of real estate demand as a new residential complex town.
This area is expected to accommodate a large-scale residential demand totaling 4,690 households, including ‘Daejeon Haneulchae Sky&’ which forms the largest single-brand town with 1,873 households from the completed 1st and 2nd phases and the upcoming 3rd phase, as well as Hillstate Seonhwa The Wise (851 households) and Hanshin The Hue Reserve (418 households). With solid residential demand backing it, rapid commercial district activation is expected, along with growing anticipation that it will become a trendy commercial hub representing the old downtown of Jung-gu.
In this context, ‘Daejeon Haneulchae Sky& Ground,’ scheduled for supply in January, is reportedly receiving steady inquiries even before the official sale. As the first commercial space in the Seonhwa-dong residential town, it is expected to secure excellent franchises and imprint the commercial district on customers early.
Especially since there is strong resident demand inside and outside the complex, Daejeon Haneulchae Sky& Ground is expected to play a significant role as a ‘Home-Around commercial facility.’
The recently rising ‘Home-Around consumption’ trend refers to purchasing only what is needed nearby due to smaller household sizes, making large quantities of daily necessities sold at big supermarkets unnecessary. It is characterized by one-stop shopping near home and spending leisure time there, resulting in longer stay times. Daejeon Haneulchae Sky& Ground, specialized for this type of consumption, can be expected to generate stable sales and investment returns.
Daejeon Haneulchae Sky& Ground’s 1st and 2nd phase commercial spaces both have two floors, allowing for diverse MD (merchandising) configurations. As the first commercial facility to enter the Seonhwa-dong emerging residential town, it can secure popular franchises, essential daily service businesses, and academies.
Meanwhile, Daejeon Haneulchae Sky& Ground is a commercial facility developed together with Daejeon Haneulchae Sky&, consisting of a total of 132 units: 62 units in the 1st phase and 70 units in the 2nd phase.
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