GBC Breaking Ground, Exciting Nearby Real Estate Developments

Hyundai Motor Company New Headquarters Global Business Center (GBC) Bird's-eye View /

[Asia Economy Reporter Yuri Kim] "Since this project is highly anticipated, once construction begins in earnest, the surrounding real estate market is very likely to stir up again." (Representative of Real Estate Agency A in Samseong-dong, Seoul)

Hyundai Motor Group's Seoul Gangnam-gu Samseong-dong Global Business Center (GBC), into which more than 10 trillion won has been invested in land costs alone, will break ground this month. It has been six years since Hyundai Motor Group purchased the former Korea Electric Power Corporation headquarters site in September 2014. Locally, there are forecasts that the ripple effects such as rising real estate prices and revitalization of commercial districts will be comparable to the creation of Samsung Town in Seocho-dong in 2008.

According to Seoul City on the 6th, Hyundai Motor Group recently submitted a construction commencement report to Seoul City aiming to start construction this month. Seoul City is also expected to grant construction permission as early as the same day. Previously, on November 26, last year, the city issued a building permit for GBC with a schedule for construction commencement in the first half of 2020 and completion in the second half of 2026. However, at that time, a condition was attached that a plan to resolve the operational restrictions of the military before exceeding about half (260m) of the 569m height of GBC must be prepared. Regarding this, Hyundai Motor Group is known to have recently agreed to pay costs so that the Air Force can purchase new radar.

GBC is planned on a 74,148㎡ site at 512 Yeongdong-daero, Gangnam-gu, Seoul, with 7 basement floors to 105 above-ground floors, a total floor area of 913,955㎡, and a floor area ratio of 783.72%. Once completed, it will become the tallest building in Korea. Its height reaches 569m. GBC consists of office buildings, hotels, exhibition and convention facilities, and performance halls. The 104th and 105th floors of the high-rise tower will be used as observatories. The public contribution fee from the development alone amounts to 1.7491 trillion won. The contribution fee will be used for the complex development of the underground space of Yeongdong-daero and the development of the Jamsil International Exchange Complex District. Seoul City forecasts that the production inducement effect from GBC and the surrounding development will reach 264.8 trillion won over the next 27 years. The expected direct and indirect jobs are 1,215,000, which corresponds to one-fourth of the total number of employed persons in Seoul (5.03 million).

The real estate in this area is also expected to change atmosphere with the commencement of GBC construction. A representative from Real Estate Agency B in the vicinity said, "Since Hyundai Motor purchased the KEPCO site, expectations for GBC have been steadily reflected," adding, "Although the current market atmosphere is very sluggish, as news of the imminent start of construction spreads, expectations will revive." Currently, the Raemian Samsung 1st Complex near GBC was traded at 1.9 billion won for an exclusive area of 84㎡ in June last year, and the current asking price is around 2 billion won. Considering that the market price was in the 800 million won range when Hyundai Motor Group purchased the site, the price has surged 2.5 times. This is the result of the combined effect of the prime Gangnam land and the GBC development effect.

The commercial real estate market is also expected to see a turning point with the start of GBC construction. If the complex development in the Samseong-dong area accelerates, the floating population will increase sharply, expanding not only the surrounding office market but also the commercial district. Jin Won-chang, head of the research team at Cushman & Wakefield Korea, explained, "With GBC and the complex development of the underground space of Yeongdong-daero, changes such as the addition of business support facilities in the Samseong-dong area will occur, raising expectations that the role and proportion of offices in this area will grow compared to now."

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