36 Approvals for Knowledge Industry Centers in Q1 This Year... Highest Ever Recorded

[Asia Economy Reporter Ryu Tae-min] As it becomes more difficult to purchase residential real estate due to consecutive real estate measures, interest in income-generating real estate, which is relatively free from regulations, is increasing. In particular, the number of approvals for knowledge industry centers, which have been gaining popularity, recorded an all-time high in the first quarter of this year.

On the 4th, the Commercial Information Research Institute, a research and development company specializing in income-generating real estate, analyzed data from the Korea Industrial Complex Corporation and found that the number of newly established or modified knowledge industry centers approved in the first quarter of this year was 36. This is the highest number since 1987, with an expected construction area reaching 1,428,689㎡ (approximately 433,000 pyeong).

The region with the most knowledge industry center approvals nationwide in the first quarter of this year was Gyeonggi-do, recording 15 cases. This was followed by △Seoul (9 cases), △Chungnam (8 cases), △Gwangju (2 cases), and △Daegu and Gangwon (1 case each). About 66.7% of the total knowledge industry center approvals in the first half of the year were concentrated in the metropolitan area.

However, concerns about oversupply have recently emerged. As supply volume steadily increases, some knowledge industry centers that recently went on sale have experienced unsold units or postponed sales.

Researcher Cho Hyun-taek of the Commercial Information Research Institute said, “Knowledge industry centers are attractive due to the possibility of small investments and tax reduction benefits, but some centers are showing poor sales results due to oversupply. Furthermore, with the recent tightening of non-residential real estate mortgage loan regulations, the investment enthusiasm for knowledge industry centers is expected to cool psychologically.”

He added, “As supply increases and the market stagnates, factors such as location, transportation environment, and product composition of knowledge industry centers are becoming more important, and polarization by region and product is expected to deepen gradually.”

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