The Revival of Mixed-Use Complexes Left Behind in the Apartment Price Surge

Half of the Top 10 Subscription Sites in Q1 Are Residential-Commercial Complexes
Record High Prices for Residential-Commercial Complexes in Gangnam, Seocho, and Gwangjin Districts

Tower Palace, Gangnam-gu, Seoul

Mixed-use residential and commercial apartments, which had been relatively overlooked during the housing price surge, are making a spectacular comeback. Major mixed-use complexes in Seoul’s Gangnam area, including Gangnam and Seocho districts, are consecutively setting new record prices, and subscription competition rates are soaring.

According to the Ministry of Land, Infrastructure and Transport’s real transaction price system on the 6th, a 164.97㎡ (exclusive area) unit in Tower Palace Phase 1 in Dogok-dong, Gangnam-gu, Seoul, was traded for 3.6 billion KRW on the 5th of last month, setting a new record price. This is an increase of 325 million KRW compared to the previous highest price of 3.25 billion KRW just a month earlier. Earlier, in November last year, a 222.48㎡ unit in the same complex was sold for 5.55 billion KRW, jumping 1.73 billion KRW from the previous transaction price of 3.82 billion KRW. Similar trends are seen in Seocho-gu and Gwangjin-gu. A 149㎡ unit in Acro Vista, Seocho-dong, Seocho-gu, rose from 1.91 billion KRW in May last year to 2.35 billion KRW in February this year. In Gwangjin-gu’s Jayang-dong, a 110.92㎡ unit in The Sharp Star City was traded for 1.6 billion KRW in May, up 125 million KRW from the previous 1.475 billion KRW.

Mixed-use residential and commercial apartments had been relatively sidelined during price surges due to several disadvantages compared to regular apartments. Unlike typical apartments, many lack balconies and have smaller usable floor areas. Most are tower-type buildings, which have poorer ventilation and airflow conditions compared to slab-type apartments. While the floor area ratio of regular apartments is around 200-300%, mixed-use complexes can reach up to 800%. Maintenance fees are also relatively higher, and the possibility of reconstruction is very low.

However, recently, as the trend of owning a single smart property intensifies and the COVID-19 situation continues, the advantages of mixed-use complexes are being highlighted. Since large-scale commercial facilities are integrated within the complexes, they are considered optimal for contactless environments. Moreover, recent construction companies are addressing the structural disadvantages of mixed-use complexes through specialized designs. They apply designs similar to those of regular apartments, such as slab-type and cross-ventilation layouts, solving ventilation issues.

The popularity of mixed-use complexes is also soaring in the sales market. According to Real Estate 114, among the top 10 nationwide apartment subscription competition rates in the first quarter of this year, five were mixed-use complexes. The first phase of Pangyo Valley Xi in the Godeung district of Seongnam, Gyeonggi Province, recorded a first-priority competition rate of 83.9 to 1, and Sejong City’s “Sejong Richensia Famillier (6-3 Living Zone H2)” reached 221.4 to 1. These figures are much higher than the nationwide average apartment competition rate of 18.39 to 1 in the first quarter (excluding officetels and rentals).

Even in Geomdan New Town in Incheon, once called the “graveyard of unsold units,” mixed-use complexes recorded the highest competition rates ever. The “Geomdan Station Geumgang Pentarium The Siglo,” supplied earlier this month, received 11,551 applications for 202 households (excluding special supply), closing the first-priority subscription with an average competition rate of 57.2 to 1.

Kwon Il, team leader at Real Estate Info, explained, “Mixed-use residential and commercial apartments, where residential and commercial spaces coexist, are generally located in commercial or semi-residential areas, boasting excellent transportation environments such as proximity to subway stations. The convenience of living within the complex is also outstanding, leading to high consumer preference.”

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