by Jung Jin
Published 22 Mar.2024 13:35(KST)
In commercial property investment, the keyword 'scarcity' has become an essential factor to consider alongside foot traffic and fixed demand. When the supply ratio of commercial facilities is low compared to demand, nearby secondary demand can be monopolized like fixed demand. Additionally, when the supply volume is insufficient even for essential businesses to move in, competition among commercial facilities is reduced, alleviating concerns about vacancies.
In this regard, the 'Hillstate e-Pyeonhansesang Munjeong In-Complex Commercial Facilities' is attracting attention for its high scarcity value ahead of its supply. Located in the Songpa-gu area of Seoul, this commercial facility is part of the Hillstate e-Pyeonhansesang Munjeong complex, with a total of 19 units across 2 buildings planned for general sale.
Currently, 1,265 households residing in the complex are secured as fixed demand, and approximately 4,000 households from four nearby apartment complexes act as secondary demand, enabling stable profits when operating the commercial facilities. Notably, despite the abundant demand, there are only 19 commercial units, giving it high scarcity. Typically, in large complexes with over 1,000 households, stable profits are achievable if there is fixed demand of 20 to 25 households per store. In this case, each store secures demand from 66.6 households. If the MD (merchandising) is composed mainly of essential businesses, the entire commercial area can quickly become vibrant.
Moreover, it is noteworthy that there have been no commercial facility sales in the vicinity of the project site in recent years. Supplied by a brand consortium of Hillstate and e-Pyeonhansesang, this commercial facility is the only newly built branded commercial property within a 1km radius, offering high project stability and distinctiveness compared to the aging surrounding commercial facilities, thus enhancing its investment value.
The location and surrounding environment of the commercial facilities are also highly rated. Situated in Songpa-gu, which offers diverse and high-quality lifestyle convenience facilities, the complex is already surrounded by established 'school zones' and 'forest zones,' which are expected to attract foot traffic utilizing these amenities.
Additionally, future plans for the nearby area include the reconstruction of Garak Hyundai 1st Apartment, Garak Plaza reconstruction, Olympic Family Town reconstruction, Munjeong Shiyeong Apartment remodeling, and Munjeong Geonyeong Apartment remodeling, which are expected to further increase future value.
A sales representative stated, "This commercial facility has secured abundant fixed and secondary demand, and the ratio of commercial units to households is high, providing scarcity and competitiveness," adding, "As it is an exclusive commercial area with only 19 units for sale, we anticipate a surge in inquiries from both end-users and investors."
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