[High apartment subscription competition rate recognizes location and product value, raising expectations for commercial properties as well]
Commercial spaces within residential complexes that follow successful apartment sales are achieving excellent sales results. The success of apartment sales in these residential complexes has already validated their location and future value to buyers, and the ability to secure future residents as a fixed demand base is seen as a key factor contributing to their high stability.
In fact, commercial spaces within residential complexes that have experienced successful apartment sales are quickly selling out. For example, last year, all units of the commercial spaces within the ‘Bongdam Xi Pride City’ complex in Bongdam-eup, Hwaseong-si, Gyeonggi-do, were sold within a week of the sales launch. When the apartments were sold in 2021, Bongdam-eup recorded the highest number of applicants ever, and the heated atmosphere continued in the commercial space market as two complexes totaling 4,034 households sold out within ten days.
A real estate expert specializing in commercial properties said, “Although the income-generating real estate market has generally been affected recently, commercial spaces within complexes that have a large-scale resident base are being sold out in a short period.” He added, “Especially when the previously sold residential complex was successful, the location, product quality, and future value have been verified, attracting significant investment demand for the subsequent commercial spaces within the complex.”
Meanwhile, in Gangwon Special Self-Governing Province, commercial spaces within a residential complex that also achieved success are scheduled for sale, drawing attention. The subject is the commercial spaces within the ‘Gangneung Lotte Castle Signature’ complex, consisting of 34 units across the 1st and 2nd floors, with a total floor area of approximately 1,621㎡.
The previously supplied apartment complex, ‘Gangneung Lotte Castle Signature,’ attracted about 35,600 applicants for 760 units (excluding special supply) during the first priority subscription in 2021, setting a new record for the highest competition rate in Gangwon Province at an average of 46.88 to 1, and sold out in about two months, receiving great response.
Notably, the record of approximately 35,600 applicants has yet to be broken, and as such, the commercial spaces now being introduced are attracting considerable attention.
The commercial spaces within Gangneung Lotte Castle Signature benefit greatly from being built alongside a large-scale complex, securing a substantial fixed demand base. They have a fixed resident base of 1,305 households, and in addition, they are adjacent to a large-scale park of 240,000㎡ developed through a private park special project, the Solol Art Museum which opened in February this year, as well as elementary, middle, and high schools, providing abundant foot traffic.
As Lotte Castle brand commercial spaces, they stand out for their symbolism and reliability compared to other small and medium-sized brand commercial spaces. Especially, being constructed as street-type structures along main roads following the large apartment complex, they offer excellent visibility and openness, facilitating demand not only from within the complex but also from outside.
Furthermore, the tenant mix (MD) will focus on lifestyle-oriented businesses to create a more vibrant commercial district. Unlike some other commercial spaces where only real estate agencies occupy most stores, this plan includes businesses essential for daily life such as F&B, hospitals, and academies.
A sales official stated, “The apartment complex previously recorded one of the best sales performances in Gangwon Province, building trust not only in location and product quality but also in the Lotte Castle brand.” He added, “Many inquiries about the commercial space sales have already been received from applicants who missed out previously as well as investors nationwide.”
Meanwhile, the commercial spaces within Gangneung Lotte Castle Signature are scheduled for public bidding in June, with occupancy planned for November. The sales promotion center is currently operating by appointment only and is located near the site in the Gyodong residential area.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
