Presenting Reasonable Sale Prices and Realistic Store Rental Income
The key factor determining the success or failure of commercial facilities is undoubtedly the ‘underlying demand.’ A large population ensures abundant demand for commercial facilities and reduces the risk of vacancies. This is why there is keen interest in the sale of Covent Walk Dongtan, a commercial facility in Dongtan Station Geumgang Penterium The Siglo, located at the center of Dongtan with a population of 270,000.
Unlike many commercial facilities within knowledge industry centers around Covent Walk, which face difficulties operating stores due to weekday evenings and weekend depopulation, Covent Walk Dongtan can operate stably 24 hours a day based on a fixed demand from 512 households residing in three apartment buildings and one officetel building, as well as abundant surrounding underlying households. Additionally, by applying a reasonable sale price and rental care system suitable for the current rental market, it is attracting high interest not only from investors but also from store owners planning to operate for actual residence purposes.
In particular, Geumgang Housing led the upward trend in the Dongtan 2 New Town commercial market by completely selling out all 31 commercial units of Geumgang Penterium 6th Central Park in Dongtan 2 New Town shortly after contracts began at the end of last year.
Industry experts say, “The larger the commercial facility within a planned city, the more stable its operation is based on a solid underlying demand, and the higher its future value due to subsequent development, allowing for potential capital gains.” They added, “In the case of Dongtan, among new towns, it is well-equipped with residential, commercial, convenience, and industrial facilities, and its large scale also raises investors’ interest in new commercial facility sales.”
Given this situation, attention is focused on the commercial facility ‘Covent Walk Dongtan’ introduced by Geumgang Housing in Dongtan 2 New Town. Covent Walk Dongtan is located in the Dongtan 2 New Town area of Hwaseong-si, Gyeonggi-do, consisting of a total of 65 units on the 1st and 2nd floors with exclusive areas ranging from 24 to 81 square meters.
This commercial complex previously attracted 22,936 applicants, recording an average subscription competition rate of 134.92 to 1, and achieved 100% contract completion as part of the commercial facilities of ‘Dongtan Station Geumgang Penterium The Siglo.’ It has a fixed demand from residents within the complex as well as about 10,000 underlying households within a 1 km radius, enabling stable operation 24 hours a day, 365 days a year.
Moreover, it is close to Dongtan Station on the GTX-A line, which was used by over 40,000 people within three days of opening, and Techno Valley Station, an extension of the Bundang Line, is currently under preliminary feasibility review. Especially, Covent Walk Dongtan is located along the movement path of floating populations from nearby residential complexes aiming to use Dongtan Station, allowing it to absorb all effective demand. It is also evaluated to have high future value and potential capital gains due to transportation benefits such as the GTX-A line and Dongtan tram. Additionally, a metropolitan bus stop connecting to Seoul is located in front of the complex, which is expected to be advantageous for attracting floating populations.
The premium of the commercial facility brand ‘Covent Walk’ by the renowned construction company Geumgang Housing, which has led the success of up to the 7th phase of sales in Dongtan New Town, also raises expectations. Previously, Geumgang Housing introduced ‘Geumgang Penterium,’ ‘Geumgang Penterium IX Tower,’ and ‘Geumgang Penterium IT Tower’ in Dongtan New Town, leading trends not only in residential facilities but also in commercial and office facilities.
The brand also boasts differentiated product features worthy of its name. The design is divided into three styles of spaces, attracting attention from the outside and applying practical layouts inside.
First, the Main Street space creates a sophisticated atmosphere by implementing a high-tech image, while the Back Street space boasts a colorful and lively atmosphere through a sloped roof and bright-colored design. Lastly, the Courtyard space linked to the neighborhood park is planned to provide an open sense of space and visually dynamic images.
In addition, the usable space is up to 51% wide, and with reasonable sale prices and rental rates, the risk of vacancies is low, resulting in relatively hot responses from investors within the Dongtan real estate market. Specifically, there are many inquiries about large marts, franchise restaurants, beer pubs, animal hospitals, pharmacies, yoga, and fitness facilities.
A sales representative said, “Geumgang Housing’s real estate enjoys high preference within Dongtan, and as a commercial facility with excellent product quality and abundant surrounding underlying demand, many prospective buyers have been inquiring even before the sale.” They added, “As Dongtan Station Geumgang Penterium The Siglo emerges as the regional leader, we will devote great effort to ensure that Covent Walk, the commercial facility within the complex, can also establish itself as a landmark representing the surrounding commercial district.”
Meanwhile, Geumgang Housing maintains a debt ratio of 39.85%, which is lower than the industry average of 111.4%, and based on solid financial soundness with a current ratio of 286.86%, it also received the highest credit rating of ‘AAA’ in the 2023 Housing and Urban Guarantee Corporation (HUG) credit evaluation.
The Covent Walk Dongtan sales office is located in Yeongcheon-dong, Hwaseong-si, Gyeonggi-do.
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