- Seoul's Major Business District Office Vacancy Rate Drops to 2% Range in Q3 Last Year
- Multiple Transportation Benefits Including Sinansan Line and Wolpan Line with West Sea Line Opening
Recently, as office demand has concentrated mainly in Seoul, demand is spreading to key offices, with key offices that have excellent accessibility to major business districts in the metropolitan area based on metropolitan transportation infrastructure attracting attention.
According to the Korea Real Estate Board's commercial real estate leasing trends, the office vacancy rates in major business districts such as Yeouido and Gangnam in Seoul recorded in the 2% range in the third quarter of last year, indicating high leasing demand. With the COVID-19 pandemic effectively over, companies have reduced remote work, increasing office demand, and due to rising construction costs causing a supply cliff, this trend is expected to continue for the time being.
Thanks to high demand, lease contracts for newly supplied offices are also being made quickly. According to KB Financial Group Management Research Institute, 'Anchor One,' the Brighton Yeouido office building completed in the third quarter of last year, achieved a lease rate of over 60% with tenants such as Yuanta Securities and Korea Securities Finance, and TP Tower (formerly the Teachers' Pension Hall) also completed pre-lease contracts with financial companies.
Unlike the soaring leasing demand, office supply is limited, and demand for key offices with accessibility to major business districts in Seoul and the metropolitan area is also increasing. Unlike knowledge industry centers, office facilities have no restrictions on the industries of tenant companies, attracting investment demand as well.
Accordingly, cases of complete sales of key area offices are also emerging one after another. In August 2022, Hyundai Engineering's 'Hillstate Gwacheon Decentro' Phase 2 office, consisting of 168 units supplied in Gwacheon Knowledge Information Town, was sold out 100%.
Gwacheon Knowledge Information Town is currently under development as an advanced industrial cluster hub area connecting the metropolitan area and Gangnam area. In particular, with the groundbreaking of the GTX-C line and the establishment of Gwacheon Information Town Station on Line 4 scheduled, it is gaining attention as a hub area connecting major business districts in the metropolitan area.
In Siheung City, 'Hyundai Terra Tower Siheung City Hall Station' is attracting attention. Recently, as Siheung City is scheduled to open the Seohae Line, Sinansan Line, and Wolpan Line centered around Siheung City Hall Station, it is emerging as a key office area as a transportation hub in the southwestern metropolitan area connecting major business districts.
With the extension and opening of the Seohae Line, transfer stations to other subway lines such as Daegok Station (Line 3, Gyeongui Line, GTX-A planned), Gimpo Airport Station (Line 5, Line 9, Airport Railroad, Gimpo Gold Line), Wonjong Station (Daejang-Hongdae Line planned), Bucheon Sports Complex Station (Line 7, GTX-B planned), and Chojik Station (Suin-Bundang Line, Line 4) have increased, significantly enhancing the convenience of transportation for existing users.
Furthermore, once the Sinansan Line opens, accessibility between Siheung City and Yeouido, the main commuting hub in the southwestern Gyeonggi area, will improve. According to the Ministry of Land, Infrastructure and Transport, it takes about 25 minutes from Siheung City Hall Station to Yeouido after the Sinansan Line opens.
The Wolpan Line is a line connecting the southwestern metropolitan area east to west, expected to enhance accessibility to major business districts in the metropolitan area such as the Incheon Songdo Bio Cluster by connecting to the Suin Line in the west and the Pangyo IT Valley in the east.
'Hyundai Terra Tower Siheung City Hall Station' is a complex office facility comprising office spaces, neighborhood living facilities, and sports facilities, located on the 10BL office facility site in Janghyeon District, Siheung City, Gyeonggi Province, with 5 basement floors to 10 above-ground floors and a total floor area of 67,488㎡.
The office facilities at Hyundai Terra Tower Siheung City Hall Station are designed as a new-concept office maximizing space utilization. All office units are equipped with lofts, and balcony spaces (except for some units) are provided, allowing for flexible space use. Additionally, storage furniture is provided to efficiently utilize indoor space.
It also features a high-quality office community that enhances work quality. It includes various auxiliary facilities such as meeting rooms including large and small conference rooms, a business lounge cafe, private showers, and a creative studio. Moreover, comfortable eco-friendly rest spaces such as a small park in front of the complex, rooftop garden, and sunken garden are provided, along with ample parking space for 600 vehicles.
The Hyundai Terra Tower Siheung City Hall Station promotional centers are operating in two locations: Gwangseok-dong, Siheung City, Gyeonggi Province near Siheung City Hall Station, and Cheolsan-dong, Gwangmyeong City, Gyeonggi Province.
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