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- High Profitability Expected with Interest Rate Cuts and 'Half the Sale Price' Compared to Competitors
Commercial facilities located in areas with a low ratio of commercial land compared to the underlying demand are gaining attention. When the ratio of commercial land is high, the supply of commercial facilities increases, leading to intense competition and higher vacancy rates. Conversely, when the ratio is low, the land available for commercial facilities is limited, increasing scarcity and allowing for the capture of nearby underlying demand. With less competition among commercial facilities, concerns about vacancies decrease, resulting in higher investment stability. Accordingly, ‘Dongtan 2 New City Daebang Elyum Lake Park,’ where the ratio of commercial spaces within the area is low, is gaining great popularity.
According to the land use plan of Dongtan 2 New City, the commercial land ratio is only about 1.1%. Compared to other new cities such as Bundang (4.7%), Ilsan (2.8%), and Dongtan 1 New City (2.7%), this is a significantly lower commercial land ratio, enabling rapid initial commercial district activation, potential monopoly of the commercial area, and the expectation of capital gains through first-mover advantage.
Experts say, “Investors in commercial properties consider location and brand, but they also see investment potential only if there is scarcity due to a low commercial land ratio,” adding, “Even if the location is good, areas with many commercial properties tend to have high sale prices but low rents, resulting in low investment potential, so it is important to check the commercial land ratio.”
The underlying demand is also abundant. For the demand of Daebang Elyum commercial facilities near Dongtan Lake Park, approximately 1.17 million people are expected within Hwaseong City and Dongtan New City (both 1st and 2nd phases). This includes not only residents of the new city but also demand from nearby industrial complexes such as Samsung Electronics and Dongtan Technovalley. In particular, Hwaseong and Dongtan New City are considered young cities, with people under 10 and those in their 30s and 40s making up 72% of the total population.
Additionally, the previously sold ‘Daebang Elyum Lake Park Residential Officetel’ recorded a highest competition rate of 42.1 to 1 and achieved a 100% sell-out. The 362-unit residential officetel provides a fixed demand base, and the commercial facilities can attract visitors from approximately 5,000 apartment units within 500 meters and visitors to the lake park, enabling stable revenue generation.
Located in Songdong, Hwaseong City, Gyeonggi Province, the commercial facilities of ‘Dongtan 2 New City Daebang Elyum Lake Park’ are scheduled to open a model house on Friday, April 19. Subscription applications will be accepted from 10 a.m. to 12 p.m. on Friday, April 26, followed by sequential unit lotteries, announcement of winners, and contract signing. Winners will be selected through a public lottery, and if multiple applications are received for each unit, the winner will be decided by drawing lots.
The commercial facilities consist of a total of 76 units on the 1st and 2nd floors above ground. The average sale price per 3.3㎡ for 42 units on the 1st floor is about 50 million KRW, and for 34 units on the 2nd floor, about 21 million KRW. These prices are up to 50% cheaper than nearby newly built commercial facilities, offering not only price competitiveness but also the potential for capital gains after completion. Based on nearby commercial rent calculations, the expected return on investment for most units is confirmed to be over 5% annually, and it is expected that all contracts will be completed in a short period, according to sales officials.
Detailed information such as schedules and prices for the ‘Dongtan 2 New City Daebang Elyum Lake Park’ commercial facilities can be obtained through the official website and the main contact number.
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