Apgujeong Rodeo Street 'Revival' Signal

Last Year Retail Store Transaction Volume and Average Price Doubled in One Year
Experts: "Expectations for Hanyang Apartment Reconstruction... Land Value Increasing"
Although Not as Renowned as Before, Commercial Area Gradually Revitalizing

[Asia Economy Reporter Onyu Lim] The area around Apgujeong-dong 'Rodeo Street' in Gangnam-gu, Seoul, which had been in decline, is showing signs of revival. The number of retail store transactions, which had remained in single digits since the 2010s, increased to 13 last year. The transaction price per 3.3㎡ also nearly doubled in one year.

According to Cushman & Wakefield Korea, a real estate consulting firm, a total of 13 retail stores were traded on Apgujeong Rodeo Street in Gangnam-gu, Seoul, last year. This figure more than doubled compared to 6 transactions the previous year. Considering that the annual transaction volume was between 1 and 4 from 2010 to 2016, this is a noticeable change. Until the 1990s, Rodeo Street was a fashion hub attracting young people, but it declined in the early 2000s due to gentrification (tenant displacement) and the emergence of competing commercial districts like Garosugil nearby. Retail store transactions, which fell to just one in 2013, remained in single digits thereafter.

The average transaction price also rose significantly. Last year, the sale price per 3.3㎡ for retail stores in this area reached 60 million KRW. The transaction price, which was 44.9 million KRW per 3.3㎡ in 2015, plummeted to 29.8 million KRW in 2016. Since then, it showed a recovery trend with ▲31 million KRW in 2017 ▲33.8 million KRW in 2018, and jumped 77% compared to the previous year last year. The highest-priced retail store transaction in the area last year was at 664-5 Sinsa-dong, which Shinhan Bank acquired for 31.8 billion KRW and is currently leased as a sporting goods store.

Experts analyze that the revitalization of retail store transactions in this area is the result of a combination of factors including the reconstruction of the Apgujeong Special Planning Zone, gradual recovery of the commercial district, and a low-interest rate environment. Apgujeong Rodeo Street is seeing a decrease in vacancy rates and diversification of business types into fashion select shops and cafes as building owners, tenants, and Gangnam-gu Office jointly implement a 'Good Rent Project.'

This content was produced with the assistance of AI translation services.