[Report] "Is it really 100 million won per pyeong?"... Empty Wirye New Town Shops, Rent Also 'Halved'

On the afternoon of the 17th, the central plaza street, the main commercial area within Wirye New Town, is quiet.
Photo by Ryu Taemin

[Asia Economy Reporter Ryu Tae-min] "Is there really a reason to open a store here? There are many other new towns." (Representative of Wirye New Town A Real Estate Agency)

When asked about opening a store in Wirye New Town on the afternoon of the 23rd, this was the response. The central plaza, the heart of Wirye New Town, was occupied only by a few parents with children and a small number of students, possibly due to the COVID-19 pandemic.

In fact, the commercial areas in this region, which saw the first apartment move-in in March 2013 nearly eight years ago, still had many vacant spots. There were more stores with "For Lease" signs than those operating normally. At a glance, more than half of the commercial spaces were empty. This was quite different from other new towns where commercial districts stabilize within about five years after move-in. Local real estate agencies cited delays in the Wirye Line (tram) project and the opening of Wirye Jungang Station as reasons for the commercial downturn. A representative from B Real Estate said, "Store listings are coming out at prices 20-30% lower than the sale price, but even then, there are no buyers."

Wirye Jungang Station Commercial Spaces, Once 100 Million KRW per 3.3㎡, Unsold Even After Price Cuts of Tens of Millions

The area around Wirye Jungang Station has consistently attracted demand for commercial spaces since the early days of the new town. As the terminus of the Wirye-Sinsa light rail and a tram stop connecting Line 8 Wirye Station and Line 5 Macheon Station, commercial activation was highly anticipated. Consequently, in 2014-2015, store sale prices soared to 100 million KRW per 3.3㎡. However, with the tram construction project stalled for a decade, tenants who could not endure have gradually given up their businesses. A representative from C Real Estate said, "Even urgent sale listings with price reductions of tens of millions of KRW are hard to find buyers for."

On the afternoon of the 17th, the Central Plaza street, the main commercial area within Wirye New Town, is quiet. Photo by Ryu Taemin

Not only have rents been halved, but many commercial spaces remain empty. The rent for a 36㎡ first-floor store in the J Building was initially a deposit of 100 million KRW with a monthly rent of 3.5 to 4 million KRW, but now it has dropped to a deposit of 50 million KRW and monthly rent in the low 2 million KRW range. In a mixed-use building near the central plaza, about half of the 260 stores?approximately 130?were vacant. Even on the prime first and second floors, every other store was empty.

Due to Delay in Opening of Unam Station, First Floors of Stores on Wirye Seoil-ro Are Also Empty

The commercial district near Wirye Seoil-ro was in an even more serious condition. With the delay in the opening of Unam Station on Subway Line 8, the commercial buildings over 10 stories tall lining the main road were empty. Among six commercial buildings, only one had stores operating on the first floor. Seon Jong-pil, CEO of Commercial News Radar, said, "The commercial spaces in Wirye New Town reflected future value too optimistically at the time of sale. Store owners set high rents to meet their expected returns, but tenants cannot generate enough income to cover these rents, so resolving the vacancy issue will be difficult for the time being." Reporter Ryu Tae-min right@

Most of the 'Wirye Obelisk' commercial buildings adjacent to Wirye Central Plaza remain vacant as they have not found tenants. Photo by Ryu Taemin

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