Wealthy Investors Also Eye Real Estate... Interest in 'Digital Empire Pyeongchon Biz Valley'

- Korean Wealthy Individuals Rank 'Real Estate' First for Additional Investments This Year, Higher Buying Intentions Than Selling Intentions
- Stability of Real Estate Asset Value Plays a Role... Increasing Interest in Income-Generating Real Estate as a Steady Source of Income

[Digital Empire Pyeongchon Biz Valley Rendering]

This year, wealthy individuals in South Korea expect the real estate market to perform poorly, yet the highest proportion of respondents still indicated a preference to invest in ‘real estate’.

This is analyzed to be because real estate is expected to yield better returns than domestic commercial bank deposit interest rates and, in the long term, is ultimately projected to trend upward.

According to Hana Bank Hana Financial Management Research Institute’s ‘2024 Korean Wealth Report,’ the top asset for additional investment intention this year was real estate. Nine out of ten people own real estate, and the intention to buy exceeds the intention to sell.

For assets with high investment intention, men prioritized real estate, stocks, and deposits, while women prioritized deposits, real estate, and funds/trusts. Notably, the response indicating a reduction in financial assets and an increase in real estate rose by 11%, reflecting expectations for a recovery in the real estate market. Conversely, the response indicating an increase in financial assets decreased by 10%. About 9% of respondents said they would maintain the proportions of real estate and financial assets but change the detailed investment composition.

This is expected to be partly due to the non-volatility of real estate asset values. A real estate industry expert explained, “Although the overall atmosphere of the real estate market has cooled, the established belief that land does not betray its owner is strengthening, raising expectations for real estate investment.”

Supporting this, demand for income-generating real estate products has recently increased. In particular, the strong performance of knowledge industry centers stands out. As the number of one-person companies and startups grows, these centers are gaining attention as office spaces and stable income-generating real estate with steady revenue streams.

The ‘Digital Empire Pyeongchon Biz Valley,’ a knowledge industry center currently being sold in Hogye-dong, Dongan-gu, Anyang-si, Gyeonggi-do, is gaining preference due to its locational advantages that allow synergy with surrounding companies.

Near ‘Digital Empire Pyeongchon Biz Valley’ are many affiliates of the LS Group, including △LS Electric △LS Global △LS Mtron. Institutions and companies such as the Korea Testing Certification (KTC), Hyosung Anyang Plant, Hyosung Technology Institute, Hyosung Heavy Industries Research Institute, and GS Power Anyang Combined Heat and Power Plant are also located nearby. The complex’s access to Heungan-daero allows easy travel to Gwacheon Knowledge Information Town, enabling potential synergy with companies in future industries such as IT, pharmaceuticals and bio, and new materials.

Additionally, a large residential town surrounds ‘Digital Empire Pyeongchon Biz Valley,’ securing excellent proximity between residence and workplace. This locational value distinguishes it from a series of knowledge industry centers concentrated on the outskirts of the metropolitan area, where it is difficult to find synergy effects between companies.

Furthermore, ‘Digital Empire Pyeongchon Biz Valley’ is within walking distance of Geumjeong Station, served by Subway Lines 1 and 4 and the planned GTX-C line. In the future, the planned Dongtan?Indeogwon Line’s Hogye Station (tentative name) will also be accessible, improving connectivity to southwestern metropolitan areas such as Uiwang-si, Suwon-si, and Dongtan New Town.

By car, Heungan-daero connects Anyang-si with Gunpo-si and Gwacheon-si, and Gyeongsu-daero connects Anyang-si with Uiwang-si and Suwon-si. The area also benefits from convenient access to transportation networks such as the Metropolitan Area 1st Ring Expressway, Gwacheon-Bongdam Urban Expressway, and the 2nd Gyeongin Expressway (Anyang?Seongnam).

This complex is a project independently developed by KT&G (Korea Tobacco & Ginseng Corporation), the only private company in Korea with the highest credit rating of ‘AAA,’ and constructed by DL Construction, which has maintained a credit rating of ‘A-’ (stable) for four consecutive years, ensuring both project stability and excellent product quality.

As a complex constructed by DL Construction, it incorporates various specialized designs. Features such as a drive-in system (partial) that facilitates vehicle traffic and smooth access maximize convenience and efficiency for business operations. High ceiling designs up to 5.7 meters (partial) and flexible unit layouts that can be configured according to the tenant’s industry or company size allow for customized spaces.

Despite rising market entry barriers due to increases in labor costs and construction material prices, ‘Digital Empire Pyeongchon Biz Valley’ is offered at a competitive average sale price of approximately KRW 11 million per 3.3㎡, which is more affordable than previously supplied knowledge industry centers. Additionally, up to 80% of the sale price can be financed through loans, and various tax benefits such as 35% reductions in property tax and acquisition tax are provided, along with sales conditions including a 10% down payment and interest-free interim payments.

‘Digital Empire Pyeongchon Biz Valley’ operates a sales promotion center by prior appointment.