‘Porena Cheonan Dujeong’ Residential Facility Sold Out, On-site Commercial Spaces Continue the Success

- Securing Fixed Demand from Residents and Proven High Stability Cited as Reasons for Popularity

Among income-generating real estate, commercial spaces within residential complexes that have been completely sold out continue to attract demand by maintaining the atmosphere of the residential facilities. This is because they are evaluated as highly stable due to having a fixed demand from the fully sold residential units.

In fact, commercial spaces within complexes are highly preferred by tenants, and from the landlord's perspective, the vacancy risk is relatively low, drawing attention. Additionally, the fact that the business feasibility has been verified through the sale of residential units is another reason for the influx of demand.

Generally, commercial spaces within complexes target residents with lifestyle-oriented businesses such as supermarkets, convenience stores, restaurants, laundries, beauty salons, and academies, making them less affected by economic fluctuations. Moreover, by attracting regular customers and family-unit customers based on fixed resident demand and surrounding catchment demand, stable sales maintenance is possible.

As a result, commercial spaces in complexes where residential units were fully sold out have been quite popular in the actual sales market. In October last year, the 24 commercial units within the ‘Eco City Desiang Nest’ in Block 8 of Jeonju Eco City were sold out within a day of the contract start. Considering that the winners were announced on the day of the bid and contracts began in the afternoon, it took less than a day. These commercial spaces are located at a corner where three complexes?Xi, The Sharp, and Desiang 7BL?intersect nearby, designed as street-type shops that easily attract foot traffic, and are adjacent to the complex entrance, offering excellent accessibility. Consequently, the highest bid rate reached an astonishing 153%, with an average bid rate of 133%. The residential units in this complex were also successfully sold out early in 2017, closing with an average competition rate of 17 to 1 for 706 units offered to the general public.

Also, in July, all 110 commercial units of ‘Front Castle Dongtan,’ located within the ‘Dongtan Station Lotte Castle’ complex supplied in the Dongtan 2 New Town Metropolitan Business Complex, were sold out within a day of the contract start. These commercial spaces are near Dongtan Station, benefiting from the station area with Lotte Department Store, Lotte Cinema, and a street mall all in one place, and enjoy fixed demand from about 1,600 households in Dongtan Station Lotte Castle as well as surrounding catchment demand, making them very popular. The apartments in this complex also recorded a competition rate of 77.5 to 1 with 54,436 applicants for 702 units excluding special supply in 2017, completing all contracts in a short period.

An industry insider said, “Commercial spaces within complexes where residential units are fully sold out have prospective customers who are residents within the complex, allowing tenants to generate income immediately upon opening, which makes them highly preferred by tenants,” adding, “From the landlord’s perspective, the advantage of minimizing vacancy risk stands out, and this will continue to attract investors looking for alternative investments in the ultra-low interest rate era.”

Meanwhile, commercial spaces within complexes where residential units have been fully sold are currently being supplied in the sales market, drawing attention.

Hanwha Construction is currently supplying commercial spaces within the large apartment complex ‘Forena Cheonan Dujeong,’ located at 28 Dujeong-dong, Seobuk-gu, Cheonan.

The commercial spaces within Forena Cheonan Dujeong are being developed in the Cheonan New Dujeong District, an emerging residential area in Cheonan. The advantage is that the commercial spaces can directly absorb demand from the large-scale residential complex. Including the fixed demand from the 1,067 households in Forena Cheonan Dujeong, it can also absorb residential demand from about 8,000 households in nearby complexes such as ‘e-Pyeonhansesang Dujeong 3rd and 4th phases’ and ‘Cheonan Dujeong Station Prugio.’

Additionally, the Cheonan Dujeong District, where the commercial spaces are being developed, is currently undergoing a land use plan change from a general industrial area to a second-class general residential area, developing into a large-scale residential town. Once these projects are completed, the area is expected to become a representative residential hub of Cheonan City and form a new residential central commercial district. Therefore, there is high anticipation that a stable commercial district linked to this will be activated.

Although the number of apartments in the New Dujeong District is planned to continue increasing, the lack of commercial areas or developed commercial districts means that the existing ‘jar-shaped’ commercial district will become more solid. In this way, those who enter the commercial spaces first can preempt the catchment demand, raising entry barriers for later entrants. This may limit business type choices, making it a significant merit for tenants entering the Forena complex commercial spaces.

Meanwhile, the commercial spaces within Forena Cheonan Dujeong are located near the main entrance of the complex, divided into two buildings, and are designed as street-type shops, which are currently highly favored. Street-type shops are arranged in a row along the sidewalk, offering a high sense of openness and the advantage of attracting foot traffic from all directions?east, west, south, and north.

The model house for the commercial spaces within Forena Cheonan Dujeong is located at 1426 Seongjeong-dong, Seobuk-gu, Cheonan (near Shilla Stay Cheonan).

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