Commercial Spaces for Sale within the ‘Jangyu Xi The Park’ Complex Equipped with Backward Demand

Most people who invest in commercial properties expect to receive steady, fixed income once they purchase a unit. However, the reality is different.

Commercial properties located in areas with abundant foot traffic, well-established surrounding infrastructure, and so-called thriving commercial districts provide returns as expected or even higher before investment. But if sufficient preliminary research on the surrounding infrastructure, commercial district, consumer levels, and purchasing power is not conducted, and investment is made just because others are doing it, such blind investment rarely yields good returns.

Commercial properties located in areas densely populated by high-income consumers can expect more stable returns than those in other locations. High-income earners have sufficient purchasing power and consumption capacity proportional to their income, enabling commercial properties in those areas to generate stable rental income. This can be confirmed by checking the rental price index from the Korea Real Estate Board. In Seoul Gangnam, where high-income residents are concentrated, the rental price index showed a continuous upward trend throughout all four quarters last year, even during a somewhat sluggish real estate market.

Commercial properties currently for sale in areas densely populated by high-income consumers with sufficient purchasing power and consumption capacity are attracting strong interest from prospective buyers and entrepreneurs planning to invest in commercial properties for stable income generation. One such location is the commercial complex within the ‘Jangyu Xi The Park’ apartment complex located in Jangyu New Town, Gimhae-si, Gyeongnam.

Jangyu Xi The Park’s commercial complex is located in Sinmundong, Jangyu New Town, which is emerging as a new residential and consumer culture center replacing the old downtown of Gimhae-si. The commercial units are arranged along Jangyuro, the main thoroughfare used by residents of the complex and the local community, designed as a street-type commercial complex with high visibility and prominence. It consists of a total of 21 units across two floors, forming a street-type commercial district along both sides of the road together with surrounding commercial complexes.

Three units on the second floor have already been leased to an academy, a Taekwondo center, and a psychological counseling center, while two units on the first floor are occupied by an Emart 24 convenience store. Sinmundong in Jangyu New Town, where the commercial complex is located, is one of the most residentially satisfying areas within Jangyu New Town, and its surrounding area ranks high in consumer spending and purchasing power within Gimhae-si. The average annual income of residents in the nine nearby apartment buildings exceeds the average income level of Gimhae-si, and Sinmundong, where the commercial complex is located, records the highest average income among these areas, indicating strong purchasing power and consumption capacity among residents.

As a result, inquiries about sales and leases from those looking for new customer bases, relocating existing stores, or preparing to start new businesses are continuously coming in. For example, unit 118 is currently in the process of signing a sales contract after consultations regarding relocating a beauty salon that was previously operating in another area. Other units are also receiving daily inquiries due to the reasonable sales prices of the Xi The Park commercial complex, which are hard to find in the surrounding area.

The average exclusive area of the commercial units is about 20 pyeong, and after special benefits, the sales prices range from under 300 million KRW to the mid-to-high 300 million KRW range (varying by unit). There have been several cases where customers who initially came for lease consultations changed their minds and decided to purchase after hearing the sales prices during the consultation.

A sales representative stated, “For the units currently on sale, we are implementing the so-called ‘3·3·3 Special Benefit Support’ which includes 3 years of rent support, 3 years of loan interest support, and 3 months of rent-free period to benefit both buyers and tenants. We are preparing for first-come, first-served unit designation contracts around mid-August.”

Meanwhile, the ‘Jangyu Xi The Park’ apartment complex consists of a total of 7 buildings with 587 households, offering a variety of exclusive areas ranging from 59 to 125 square meters. The sales promotion center is located within the commercial complex of Jangyu Xi The Park in Sinmundong, Gimhae-si.

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