The commercial district that investors pay the most attention to is one that operates non-stop 365 days a year.
Typical commercial properties are often affected by the day of the week or season. For stores located in office-dense areas, weekday office workers are the main customer base, so demand concentrates around lunch and dinner times, limiting the hours for profit generation. Many of these places also close on weekends.
Additionally, commercial areas near parks with many visitors tend to do better on weekends and holidays, while stores located in front of universities often experience a drop in sales during vacation periods. Commercial properties targeting specific customer groups like these have varying sales by day of the week, making profitability uncertain.
However, locations where large apartment complexes and popular commercial districts coexist are favored because they can generate steady sales not only on weekdays but also on weekends. This is advantageous as they have the residents of nearby residential complexes as a stable customer base and can attract abundant foot traffic through connections with surrounding commercial areas.
According to data on investment returns for collective commercial properties from the Korea Real Estate Board, as of the fourth quarter of last year, the return rate for the Yeouido commercial district, which is concentrated with businesses, was 1.32%. Konkuk University Station, located in front of a university, had a return rate of 0.99%, and Sookmyung Women's University was only 0.58%. In contrast, Cheonho Station commercial district, which is home to numerous residential complexes and the famous Cheonho Rodeo Street known for its youthful vibe, showed a higher return rate of 1.83%.
As the importance of commercial facilities that can operate both weekdays and weekends rises, the large-scale commercial facility "Gangdong Eastern Square," announced for supply this month, is attracting investors' attention in the Cheonho Station commercial district.
Located in Cheonho-dong, Gangdong-gu, Seoul, Gangdong Eastern Square is the sales facility of the mixed-use residential complex Gangdong Millennial Joongheung S-Class. It will be built with a total floor area of 50,223㎡ (approximately 15,000 pyeong) spanning from basement level 3 to ground level 3, comprising a total of 246 units (176 units for general sale).
Gangdong Eastern Square is expected to benefit from a fixed demand of 1,263 households from Gangdong Millennial Joongheung S-Class, which includes 999 apartments, 264 officetels, and office facilities, as well as a surrounding customer base of about 5,600 households.
It is adjacent to Cheonho Rodeo Street, a representative commercial district in eastern Seoul, and forms a commercial map connected to the already active Cheonho Station commercial area, including Hyundai Department Store, E-Mart, Hyundai Home Shopping, and 2001 Outlet, enabling active business operations seven days a week.
The sales promotion center is located on the 2nd floor of the Munhwa Building, Gucheonmyeon-ro, Gangdong-gu, Seoul.
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