[Report] Excitement Grows for Cheongunhyoja-dong and Samcheong-dong Commercial Districts Ahead of Cheongwadae Opening

Increased Tourism Demand Expected in Cheongunhyoja-dong and Samcheong-dong
Vacancy Rates Decrease and Lease Inquiries Rise

On the afternoon of the 8th, two days before the full opening of Cheong Wa Dae, tourists in front of Cheong Wa Dae were seen eagerly taking photos of Cheong Wa Dae even from a distance. Photo by Hwang Seoyul

[Asia Economy Reporter Hwang Seoyul] On the afternoon of the 8th, two days before the opening of Cheongwadae, the Cheongunhyoja-dong area in Jongno-gu, Seoul was filled with tourists dressed in hanbok despite the cloudy weather. Especially on the path between Gyeongbokgung Palace and Cheongwadae leading to Samcheong-dong, tourists could be seen focusing on capturing Cheongwadae with their cameras even from a distance. Local businesses nearby are increasingly hopeful that the influx of crowds due to the opening of Cheongwadae will further boost tourism demand.

Cheongwadae will be fully opened on the 10th, the inauguration day of President-elect Yoon Seok-yeol. Along with this, cultural events such as tightrope walking performances and traditional dance shows will be held. Applications to visit Cheongwadae surpassed one million within three days of opening on the 27th of last month. Yoon (67), who runs a restaurant in Samcheong-dong, said, "Since the southern side of Bugaksan, the mountain behind Cheongwadae, was opened last month, the number of tourists has increased," adding, "I expect sales to definitely improve once Cheongwadae is opened."

The anticipation for commercial district revival is clearly reflected in the increased inquiries about store rentals. Real estate agents in the area unanimously reported, "Recently, rental inquiries have increased." The head of Cheongunhyoja-dong A real estate office explained, "Vacancy rates are decreasing and rental inquiries are coming in a lot," adding, "As tourists gradually increase, there is growing hope that the commercial district will be revitalized." The representative of nearby B real estate also said, "If there were 10 vacancies in February, now there are about 3 to 4."

The Blue House will be fully opened on the 10th to coincide with the inauguration ceremony of President-elect Yoon Seok-yeol. Traffic in front of the Blue House is expected to be restricted according to the full opening viewing schedule.
Photo by Hwang Seoyul

However, as positive prospects for the revitalization of the nearby commercial district emerge, there are also movements to raise rents. The representative of C real estate near Samcheong-dong said, "As COVID-19 restrictions have eased, rental inquiries for stores have increased compared to before," but also added, "I receive many calls from building owners trying to raise rents due to expectations surrounding the opening of Cheongwadae."

The signs of rents, which had decreased due to the contraction of commercial districts caused by COVID-19, returning to previous levels seem to have appeared since last year. According to Seoul City's Our Neighborhood Store Commercial District Analysis Service, the converted rent per 3.3㎡ for cafes in Samcheong-dong surged from 122,460 KRW in the first quarter of last year to 170,330 KRW in the second quarter, and remained around 170,000 KRW in the third and fourth quarters. One real estate representative said, "Building owners are asking how much they can raise rents for places with lease renewals coming up soon." Another real estate official also revealed, "There are many cases where rents are being raised by several hundred thousand KRW."

Park Daewon, director of the Commercial Information Research Institute, explained, "After the full opening of Cheongwadae, if tourism demand floods into this area, the commercial district will naturally be revitalized according to the movement paths of tourists," adding, "If store sales increase and tenants are judged to be able to afford the increased rent, there is a high possibility that rents will also rise."

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