Prices of Knowledge Industry Centers in Downtown Seoul Have Also Doubled

[Asia Economy Reporter Onyu Lim] Along with apartment prices, commercial real estate prices have also been rising sharply. In the case of knowledge industry centers located in major downtown areas of Seoul, the price per 3.3㎡ has more than doubled over the past five years.

On the 2nd, according to an analysis of Knowledge Industry Center 114 data by real estate information provider Economy Man Lab, Munjeong Station Terra Tower located in Munjeong-dong, Songpa-gu, Seoul, was recently traded at 20.52 million KRW per 3.3㎡ (5th floor) in October last year. This is a 138% increase compared to 8.61 million KRW (12th floor) traded in October 2016.

Munjeong M Stay, located right next to Munjeong Station Terra Tower, was traded at 17.38 million KRW per 3.3㎡ (3rd floor) in September last year, which is about a 90% increase compared to 9.15 million KRW (7th floor) traded in September 2016, five years ago.

The Seoul Digital Industrial Complex, the only national industrial complex in Seoul, is also continuing its upward trend in sales prices. Kolon Villant 2nd in Complex 1 was traded at 10.13 million KRW per 3.3㎡ (9th floor) in September last year, a 64% increase compared to 6.17 million KRW (6th floor) traded in January 2016. Daeryung Post Tower 3rd in Complex 1 and Ace Techno Tower 10th in Complex 3 also rose by 43% and 42%, respectively, compared to 2016.

Interest in knowledge industry centers in the Gyeonggi area is also increasing, not just in Seoul. Gwacheon Sangsang Xi Tower, sold in Block 3 of Gwacheon Knowledge Information Town, Gyeonggi Province, was sold out within a day in January last year, and Hyundai Terra Tower Gwangmyeong, sold in Gwangmyeong, Gyeonggi Province in June of the same year, was also sold out early. All of these locations are adjacent to Seoul or are considered to have high future value.

In addition to Gwangmyeong and Gwacheon, office district developments are actively underway in Bucheon Okgil District and Goyang Hyangdong District. The Platform R in Bucheon Okgil District and Hyundai Terra Tower DMC in Goyang Hyangdong District have also announced upcoming sales.

Oh Daeyeol, head of the research team at Economy Man Lab, said, “Knowledge industry centers are a great advantage because they are not subject to housing regulations and can receive various tax benefits.” He added, “Recently, due to the low interest rate trend, demand seeking investment destinations is flocking to knowledge industry centers, resulting in an overall upward trend.”

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