- Olympic Park Foreon with 12,032 households included, totaling over 34,000 households as a demand base
- High scarcity value in-complex commercial spaces with only 7.2㎡ supply area per household
As the timing of the base interest rate cut becomes uncertain, idle funds in the market that have not found investment destinations are increasing significantly.
According to the Bank of Korea, idle funds that have not found investment destinations increased by 10.7 trillion won in March alone. This is because investors have become cautious due to unexpected variables such as the Middle East war.
The real estate market is also moving around regions and products that investors consider stable to hold, as investors remain cautious. The area of interest is the Gangnam area of Seoul, with growing attention on some newly built apartments and commercial properties with solid underlying demand.
In particular, as consumption has increased again following the declaration of the COVID-19 endemic, sales in commercial districts have also risen, leading investors to turn their attention to commercial property investments. Especially, commercial spaces within apartment complexes are preferred by many investors as they have apartment residents as a customer base and host lifestyle-oriented businesses that operate stably.
Furthermore, large-scale commercial spaces within complexes, combined with surrounding underlying demand, not only accommodate lifestyle-oriented businesses but also various sectors such as medical clinics, SSM (Super Supermarkets), large academies, clothing stores, and food and beverage outlets, significantly contributing to the formation of competitive commercial districts.
One point investors should be cautious about is the scarcity of commercial spaces. If the supply of commercial spaces becomes excessively large compared to the underlying demand, demand gets dispersed, resulting in reduced competitiveness. Conversely, fewer commercial spaces make it easier to secure demand.
A representative example is the Dunchon-dong area in Gangdong-gu, Seoul, which is attracting great interest due to the unprecedented large-scale apartment complex move-in scheduled for the second half of this year. In this area, ‘Foreon Station 9’ is being supplied, drawing investors' attention.
‘Foreon Station 9’ is a commercial complex within the Dunchon Jugong reconstruction mega-complex Olympic Park Foreon, a mini new town-scale complex with 12,032 households, starting move-in in November. In addition, it secures underlying demand from a total of approximately 34,000 households, including the 5,540-household Olympic Athlete Village apartment located opposite and about 16,000 households in the nearby Seongnae 3-dong and Dunchon 2-dong areas.
Despite such solid underlying demand, ‘Foreon Station 9’ has very high scarcity due to its limited supply. In contrast, the Hanam Gam-il district nearby is known to have a commercial supply area exceeding about 400,000㎡ (including some office facilities) compared to the total planned households (13,886 households).
On the other hand, the total commercial area of Olympic Park Foreon (12,032 households), combining ‘Foreon Station 5’ supplied last year and ‘Foreon Station 9’ supplied this year, is only 86,318㎡. Comparing the two shows that the scarcity value of commercial spaces within the Olympic Park Foreon complex is very high.
A sales official said, “With a solid underlying demand of about 34,000 households and high scarcity of commercial spaces, stable operation is expected,” adding, “As a follow-up commercial facility to the successfully sold ‘Foreon Station 5,’ it is attracting even more interest.”
The recommended business types for each floor of ‘Foreon Station 9’ are ▲ Basement 1: mart, SSM, side dish shops, daily necessities stores, snack corners, etc. ▲ Ground floor 1: lifestyle shops, real estate agencies, convenience stores, coffee shops, bakery cafes, ATMs, etc. ▲ Ground floor 2: clinics (internal medicine, ophthalmology, etc.), beauty salons, nail shops, F&B, academies, etc. ▲ Ground floor 3: academies (English, math, entrance exam academies, etc.), study cafes, clinics, F&B, etc.
The sales promotion center is located on Yangjae-daero, Gangdong-gu, Seoul.
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