Attention on Deogeun DMC IS Biz Tower Hangang in Deogeun District Next to Seoul

- Seoul Major Business District Knowledge Industry Center Price Per Pyeong Surpasses 30 Million Won
- Mapo-gu Deogeun-dong Deogeun District Knowledge Industry Center Next to Sangam-dong at 14 Million Won Per Pyeong

Recently, the rise in apartment sale prices due to increased construction costs has spread to knowledge industry centers as well. In major business districts in Seoul, the sale price per pyeong (3.3㎡) is exceeding 30 million KRW. As a result, attention is once again focusing on newly built knowledge industry centers in Deogeun District, where reasonable prices are being formed.

According to the construction industry, the sale price per 3.3㎡ of knowledge industry centers in Seongdong-gu, Seoul, has surpassed 30 million KRW. Similarly, prices in Yeouido and Yeongdeungpo are set at comparable levels. The main causes are increases in raw material costs, construction expenses, and land prices, making further price rises inevitable for the time being.

The high office demand in Seoul’s major business districts, known as GBD, YBD, and CBD, is also influencing the rise in sale prices. According to the Korea Real Estate Board, the average office vacancy rate in these areas is between 3% and 5%. Generally, a natural vacancy rate of 5% is considered balanced supply and demand in the office market. Considering this, it can be said that office vacancies in these areas are virtually nonexistent.

Real estate experts explain, “Considering the ongoing issue of rising construction costs and the steady increase in office demand, the sale prices of new knowledge industry centers in Seoul’s major business districts are expected to continue rising for the time being. If the current prices are burdensome, it is necessary to carefully examine areas near these districts where reasonable price ranges are forming.”

Meanwhile, the new knowledge industry center in Deogeun District, which has location conditions comparable to Sangam-dong in Seoul, is attracting attention. The protagonist is ‘Deogeun DMC IS Biz Tower Hangang,’ which is priced at a surprisingly low sale price that is hard to believe for a Seoul living area.

Deogeun District, where ‘Deogeun DMC IS Biz Tower Hangang’ is located, is right next to Sangam-dong, Mapo-gu, Seoul. It is about a 10-minute drive away. Due to this characteristic, Deogeun District is referred to as ‘Mapo-gu Deogeun-dong’ in the real estate industry. This nickname comes from the fact that it shares the same location conditions as Sangam-dong, which is considered a representative business district in Seoul.

Despite these advantages, ‘Deogeun DMC IS Biz Tower Hangang’ is priced at a groundbreaking 14 million KRW per 3.3㎡. This is about half the price of major business districts in Seoul such as Seongdong-gu and Yeouido. Additionally, the sale price of knowledge industry centers in Magok District, Seoul, which borders Deogeun District, is around 23 million KRW per 3.3㎡, showing a difference of about 10 million KRW.

The value of ‘Deogeun DMC IS Biz Tower Hangang’ is expected to increase further. This is because more companies are likely to seek offices in nearby Sangam-dong. Currently, Sangam-dong is centered around Digital Media City (DMC), where various media companies such as broadcasters and entertainment firms, as well as advanced industries, are concentrated. According to Mapo-gu Office, as of 2022, there are over 4,100 businesses and more than 51,300 workers in this area. With so many companies and workers, Sangam-dong can already be considered oversaturated.

In addition, Seoul City plans to build a super high-rise advanced complex business center up to 540 meters tall in this area by 2023. Once this project is completed, the number of companies wanting to move into Sangam-dong will inevitably increase. This is expected to cause an office shortage in the Sangam-dong area, which will likely increase attention on the new knowledge industry center in neighboring Deogeun District, ‘Deogeun DMC IS Biz Tower Hangang.’

Real estate experts say, “Deogeun District has excellent location conditions so close to Seoul that it feels awkward to say it belongs to Goyang City. However, it has been undervalued compared to what it deserves until now. As office supply decreases and office shortages are expected, the value of Deogeun District, which shares location conditions with Sangam-dong, will definitely rise further. Right now is the most affordable time for sale prices.”

‘Deogeun DMC IS Biz Tower Hangang’ is located at the very center of the large-scale advanced business town ‘IS Valley.’ ‘IS Valley’ is a complex town developed by IS Dongseo in the heart of Deogeun District, harmonizing work, residence, and commerce. Currently, ‘IS Valley’ is actively developing large-scale knowledge industry centers, residential officetels, and commercial facilities. Recently, a large-scale knowledge industry center right next door has started occupancy, continuing a vibrant atmosphere.

‘Deogeun DMC IS Biz Tower Hangang’ is situated in blocks 6 and 7 within Deogeun District, the core location of ‘IS Valley.’ It will be constructed with two buildings ranging from four basement floors to a maximum of 21 floors above ground, with a total floor area of 158,613㎡. The sales promotion center is operating in Deogeun-dong, Deogyang-gu, Goyang-si, Gyeonggi-do.