2) Story of Daechi-dong Academy Street
The value of Daechi-dong is gaining more attention due to several development windfalls. One of them is the development of Hyundai Motor Group’s Global Business Complex (GBC) in Samseong-dong, which is expected to be a large-scale complex that will become a landmark in the Samseong-dong area. The complex will include Hyundai Motor Group’s global headquarters, a luxury hotel, a convention center, and a shopping mall, and after completion, it will become an important landmark that will change the skyline of Seoul. This is expected to transform the Samseong-dong area into a global business center and have a positive effect on the real estate value of nearby Daechi-dong.
Data provided by Seoul Metropolitan Government
In addition, GTX-A, one of the metropolitan area’s high-speed railway (GTX) lines, is scheduled to open near Daechi-dong. This line is expected to quickly connect major areas in the metropolitan area, including Seoul’s Samseong Station, and greatly improve accessibility to downtown Seoul. With the opening of GTX, commuting times will be shortened, and Daechi-dong’s appeal as a residential area will also increase.
The opening of the Wiryesinsa Line will also be an important factor in improving transportation conditions in Daechi-dong.
The Wirye-Sinsa Line is a subway line that starts from Sinsa-dong, Gangnam-gu, Seoul and connects to Wirye New Town. It passes close to Daechi-dong, so it is expected to greatly improve public transportation accessibility for local residents. When this line opens, Daechi-dong residents will be able to easily connect to not only the main areas of Gangnam but also Wirye New Town, which is attracting attention as a new residential area, and the residential value and convenience of Daechi-dong will be greatly enhanced.
In addition, some areas of Daechi-dong are located in a position where they can view Yangjae Stream. Yangjae Stream is a place where you can enjoy nature in the city, and it is a popular place for local residents because it has well-developed walking and bicycle paths. Residential areas with such natural scenery are highly preferred, and especially, in conjunction with various development projects, there is a high possibility that they will have value that surpasses the Han River view in the future.
These various development windfalls are expected to further highlight Daechi-dong as a major residential area in Seoul and further increase its future value. In particular, the reconstruction and development projects in the Daechi-dong area will contribute to improving the residential environment of the area and revitalizing the real estate market. The concentration of commercial facilities and academies in the area is also having a significant impact on the increase in real estate value. Recently, as demand for Daechi-dong real estate continues to increase and supply is limited, Daechi-dong is expected to further highlight itself as a major residential area in Seoul and further increase its future value.
The center of Daechi-dong Academy Street is Eunma Apartment Intersection, where academies for high school students are concentrated. Academy schools that cannot afford the high rent on the main road of Eunma Apartment Intersection are gradually moving to the back of Lotte Department Store in Hanti Station or toward Daechi Intersection. Daechi-dong Academy Street is diverse and segmented, from kindergarten to repeat students.
It is common to hear stories of people spending millions or even tens of millions of won on their children's private education in Daechi-dong. Starting from elementary school, they add specialized academies for each subject, and if they receive private tutoring to make up for what they lack, the cost can sometimes reach tens of millions of won. In Daechi-dong, there are not only academies for major subjects, but also various team classes, which shows how diverse the academy district is. When I first came to Daechi-dong, I was also interested in the fact that there were many Chinese character academies. In addition to major subjects, the selection of academies for various subjects is done very carefully, whether it is regular classes or team classes.
Daechi-dong is not just a place for studying, but a place that always looks after children and prepares plans A, B, and C. In addition to entrance exam academies, there are also various academies such as art academies, animation academies, ballet academies, study abroad academies, and physical education academies, so it is a place where children can change direction at any time and take other routes without being obsessed with domestic entrance exams.
When I see the efforts of students and parents who come from all over the country every weekend, I think the power of private education that has survived here is amazing. From Daechi intersection to Daechi Station, from Hanti Station to Eunma intersection, the main academy shopping districts are undergoing building reconstruction like new buildings with Gangnam Daesung signs. Despite the high rent, the main shopping district of Eunma intersection is full of famous academies and restaurants, so there is no room for vacancies. I have no doubt that the academy shopping district will not go out of business even if the school-age population decreases.
New building where Gangnam Daesung Academy is located
Construction site of a new building at Daechi Intersection
I am currently in the process of selling the commercial space in Daechi First Building located in front of Exit 7 of Daechi Station, and am establishing an asset management plan for the owners of Daechi First Building based on the related valuation and analysis data. I recommend that those who wish to invest in the commercial space in a large building in Daechi-dong pay attention and consult with experts.
Continued in next issue
