Daejeon Commercial Properties Riding Rental Price Index Surge... 'Hills Avenue Dunsan' Commercial Facility for Sale

- Polarization in the Commercial Leasing Market with Rising Rental Prices in Seoul and Daejeon
- ‘Hills Avenue Dunsan,’ a Landmark Commercial Facility in Gangnam Dunsan Living Area, Daejeon, Attracts Attention

As polarization in the commercial property sales market intensifies, cities like Daejeon are experiencing a rise in commercial rental price indices, sparking strong interest among buyers for new sales.

According to data from the Korea Real Estate Board, from the second quarter of 2023 to the first quarter of this year, the nationwide collective commercial rental price index fell by 0.15%, but Seoul and Daejeon showed increases of 0.54% and 0.17%, respectively, reflecting contrasting trends. In particular, in Daejeon, not only collective commercial properties but also small-scale and medium-to-large commercial properties rose by 0.12% and 0.04% respectively in the first quarter, continuing the upward trend in the commercial market alongside Seoul, making them the only regions nationwide to do so.

Especially in areas like Daejeon and Seoul, commercial facilities located in representative local business districts are even more preferred. For example, all six units of the commercial facility reserved at ‘Raemian One Bailey’ in the Banpo area?where Banpo Station on Seoul Subway Line 9 and Express Bus Terminal Station on Lines 3 and 9 are located?were sold out in a short period, with premiums reaching up to 1.2 billion KRW.

Industry experts say, “While the commercial property sales market shows polarization by region, Daejeon and Seoul are experiencing rising rental price indices based on demand with higher purchasing power than other regions,” adding, “Especially with global interest rate cuts anticipated, if the commercial market heats up, it is expected to enjoy future value as well.”

In Daejeon, the Dunsan living zone in Seo-gu is considered such a commercial district. Around Daejeon Subway Line 1’s City Hall Station and Tanbang Station, residential towns, administrative offices, convenience facilities, and educational institutions converge, enabling a business district that is active 24/7 throughout the year. This is why ‘Hills Avenue Dunsan,’ constructed by Hyundai Engineering & Construction, is attracting investor interest.

Hills Avenue Dunsan is a commercial facility within ‘Hillstate Dunsan,’ located in Tanbang-dong, Seo-gu, Daejeon (former Homeplus Tanbang branch). It spans approximately 2,500㎡ across the first and second floors. The Hillstate Dunsan officetel is expected to offer 600 units for sale in the future.

Hills Avenue Dunsan is situated in a prime location within Dunsan and Tanbang. It is located in a station area about 150 meters from Tanbang Station on Daejeon Subway Line 1, with City Hall Station on Line 1 also accessible. Additionally, Daejeon City Hall is about 300 meters away, and north of City Hall are clustered government offices including the Office of Education, Court, Prosecutor’s Office, Police Agency, Tax Office, Seo-gu Office, and the Government Complex Daejeon. The presence of extensive parks such as Boramae Park also draws attention.

Moreover, Hills Avenue Dunsan has paid attention to product differentiation befitting a branded commercial facility. The open space on the first floor will be developed into a plaza, linked with surrounding parks to enhance comfort and maximize customer attraction effects.

A sales official stated, “Hills Avenue Dunsan is located at the core of Daejeon’s largest commercial district, boasting stable demand and excellent accessibility. Especially being in a station area, it is expected to attract abundant foot traffic through synergy with subway users and nearby government offices and commercial areas,” adding, “This commercial facility will offer customers a new space for shopping and culture through its brand-led design and product composition.”

Meanwhile, the Hills Avenue Dunsan promotional center is currently operating right in front of Yuseong Oncheon Station on Daejeon Subway Line 1.