Outdoor advertising permitted, ‘a drop of rain in a drought’
Office supplies that had been cut off are also continuing
This year, the Seoul office market has undergone greater change than ever before. Yeouido International Finance Center (IFC) and other large properties are being traded, the volume of office transactions in Seoul is expected to hit an all-time high. In addition, the Yeouido Park One project, which had been at a standstill for a long time, has resumed development, and the shared office company WeWork is also entering the Korean market in earnest. Based on the major variables, we will look at the market outlook for next year.
#On the 2nd, the Ministry of the Interior and Safety designated the COEX area in Gangnam-gu, Seoul as an 'outdoor advertisement free display zone' to make it a Korean Times Square. Large buildings in this area will be able to install outdoor billboards starting in the middle of next year. The government's announcement that day was also an important topic in the office market. This is because the value of buildings in areas where outdoor advertisements are installed as free display zones is expected to rise.
◇Will it become a catalyst for the revival of 'Gangnam'?=The Gangnam office market has been in the cold for a while. Pangyo, a newly emerging office district, is one of the major tenants of the Gangnam office market, the information technology (
IT) This is because the vacancy rate has increased significantly as companies are absorbed. In the midst of this, the news that the COEX area has been designated as a free outdoor advertising zone is expected to be a drop of rain in a drought.
Ji Hyun-seok, managing director of Savills Korea, explained, “Office building owners can see their property values increase compared to other areas because they can increase their income other than building rent through outdoor advertising.” It is expected to have a positive impact not only on large offices and commercial facilities where billboards can be installed, but also on the market for small and medium-sized buildings nearby.
Lee Cheol-hyung, team leader at Remax Wide Partners, said, “As the COEX area emerges as a tourist attraction, the population flowing into nearby areas is expected to increase,” adding, “Not only large buildings, but also small and medium-sized buildings
1~2As commercial facilities located on the ground floor become more active, rents and building values are expected to rise,” he predicted.
<Pangyo, the 'Gangnam alternative' ahead of the 2nd Techno Valley, is a variable>
◇New office supply that had been cut off also resumes=It is also good news that the supply of new large-scale offices, which had been suspended for a while, is resuming. Generally, the supply of new offices invigorates the market. The recent rise of downtown as the center of the office market is also for a similar reason.
With Savills Korea
CBRE According to the back
2010Since 2011, buildings over 10,000㎡ supplied in Gangnam area
GTTower (
2011years), Autoway Tower (
2014It is about 10 years. However, following the supply of Parnas Tower near Samseong Station this year, Hyundai Motor Group's Global Business Center (
GBC), the Bellesance Hotel (formerly the Renaissance Hotel) is also scheduled for redevelopment. Also,
1998After the bankruptcy of Shinhan Financial Group in 2011
20The old Shinhan Financial Group building, which has been left as an eyesore for nearly a decade, is also looking for a new owner and is set to be developed.
Of course, the Pangyo area, which has emerged as an alternative to Gangnam, is expected to remain a variable. In particular, the second Pangyo Techno Valley is scheduled to open next year. Institutions that have invested mainly in the three major areas of Seoul are also keeping an eye on Pangyo. For example, ARA, a Singapore-based REIT asset management company,
ARA) applied for approval for the Pangyo 'Alpharium Tower' to the Ministry of Land, Infrastructure and Transport on the 2nd. There is keen interest in how much the Gangnam area, which is seeking a revival with Times Square and new supply, will recover its old reputation that it had given to Pangyo Office. / Reporter Ko Byeong-gi
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