Lotte Mart-anchored 'Gangdong Eastern Square' Draws Attention

The income-generating real estate market, which was severely impacted by high interest rates, has shown signs of recovery since this spring, with transaction volumes increasing again.

According to ValueMap, a land and building transaction platform, the nationwide commercial and office facility transaction volume dropped to 3,059 cases by the first quarter of this year. However, in the second quarter, conditions for transaction activation, such as price declines, were created, leading to a transaction volume increase of more than 10% compared to the previous quarter. In the third quarter, with rising expectations of interest rate cuts, the volume increased to 3,391 cases.

The area with the largest increase in transaction volume in the third quarter was Seoul, rising 24% compared to the previous quarter and 28% compared to the same period last year. During the same period, the land price per 3.3㎡ was 98.18 million KRW, up 10% from the previous quarter and 12.8% from the same period last year.

An industry insider said, “What is noteworthy in the commercial and office facility market in the third quarter is that prices rose rapidly along with the market transaction recovery,” adding, “As the possibility of interest rate cuts is increasing in the fourth quarter, quick-moving investors are actively securing prime investment locations.”

Meanwhile, ‘Gangdong Eastern Square’ located in Gangdong-gu, Seoul, is attracting attention. It is situated in the Cheonho Station commercial district, considered a prime location among commercial facility investors, and is expected to enable stable operation by securing various key tenants.

According to data from SK Telecom’s big data analysis platform GeoVision, the monthly sales of the Cheonho Station commercial district were recorded at 178.6 billion KRW as of 2021. This is the fifth-highest sales figure among Korea’s top 100 commercial districts and even surpasses Seomyeon Station (173.9 billion KRW), known as Busan’s largest hotspot.

‘Gangdong Eastern Square’ is a sales facility of Gangdong Millennial Jungheung S-Class, a large-scale street mall spanning from basement level 3 to ground level 3, with a total floor area of 50,223㎡ (approximately 15,000 pyeong). It consists of 246 units, of which 176 units are for general sale.

About 7,500 pyeong of the underground sales area has been sold out, with various businesses moving in. With Lotte Mart confirmed to open on the first basement floor, key tenants such as the nation’s top large lifestyle goods mart (Company D) and the region’s largest Golfzon and GDR are scheduled to enter sequentially.

The Lotte Mart Cheonho branch (tentative name), boasting an area of 11,840㎡ (3,581 pyeong), is highly anticipated as it is the first new store opening in five years since Incheon Terminal, Icheon, and Suji branches in 2019. It is planned to open as a grocery-specialized store similar to Lotte Mart Eunpyeong branch’s Grand Grocery, attracting strong interest from local residents.

In particular, with the closure announcement of E-Mart Cheonho, which is favored by Gangdong-gu residents, demand is expected to concentrate on Lotte Mart Cheonho, the only large mart in the area. The expected monthly number of visitors to Lotte Mart Cheonho (tentative name) is projected to exceed 110,000.

Once all key tenants on the first basement floor move in, ‘Gangdong Eastern Square’ is expected to secure more than 300,000 monthly visitors including the resident population, creating synergy with the Cheonho Station commercial district and establishing itself as the region’s premier complex commercial facility.

‘Gangdong Eastern Square’ is currently selling a small number of remaining commercial facilities, and its promotional center is located on the 2nd floor of the Munhwa Building, Gucheonmyeon-ro, Gangdong-gu, Seoul.