Hanwha Construction's 'Forena Cheonan Dujeong Complex Commercial Area' Gains Popularity with Stable Backing Demand

- Able to absorb residential demand of over 8,000 households, including fixed demand within a complex of 1,067 households

Hanwha Construction announced that it will supply the commercial spaces within the Forena Cheonan Dujeong complex, located in the Dujeong district of Cheonan in March. Situated in the newly emerging residential hub of Cheonan, the new Dujeong district, which forms a jar-shaped commercial area, it is expected to directly absorb abundant hinterland demand.

A jar-shaped commercial area refers to a commercial district limited to a specific area with a large-scale residential demand, which no longer expands but at the same time, consumers do not leave for other areas. Based on this, it can secure stable fixed demand, making it one of the most preferred commercial areas for both landlords and tenants.

In fact, jar-shaped commercial areas have been found to have relatively high investment returns. According to the Korea Real Estate Board, the investment returns for collective commercial properties in the representative jar-shaped commercial areas of Seoul, Jamsil and Mokdong, in the fourth quarter of 2019 were 3.12% and 2.07%, respectively, exceeding the average return of 1.68% in downtown Seoul.

As a result, new commercial spaces developed within jar-shaped commercial areas continue to soar. For example, the ‘Suseong Beomeo W’ commercial complex ‘Suseong Beomeo W Square’ in Suseong-gu, Daegu, which was sold last year, found owners for 118 stores within two days of contract signing, with a competition rate of up to 150 to 1.

An industry insider said, “Commercial spaces within jar-shaped commercial areas have the advantage of securing fixed demand, resulting in high rents and good investment returns, and tenants’ preferences remain steady, leading to low vacancy rates. Therefore, investors are actively moving in, maintaining steady popularity due to the advantage of minimizing investment burden and vacancy risk.”

Meanwhile, the ‘Forena Cheonan Dujeong complex commercial spaces’ are being developed in the new Dujeong district of Cheonan, which is emerging as a new residential area. The commercial spaces have the advantage of directly absorbing demand from large-scale residential complexes. Including the fixed demand within the Forena Cheonan Dujeong complex of 1,067 households, it can also absorb residential demand from about 8,000 households in nearby complexes such as ‘ePyeonhansesang Dujeong 3rd and 4th phases’ and ‘Cheonan Dujeong Station Prugio’.

In addition, the Dujeong district of Cheonan, 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, being developed 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 commercial district. Therefore, there is high anticipation that a stable commercial area 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 and developed commercial districts means that the jar-shaped commercial area is expected to become even stronger. In this way, those who enter the commercial spaces first can preempt the hinterland demand, making it harder for later entrants to enter. This may limit the choice of business types, making it a very significant merit for tenants in the Forena complex commercial spaces.

Meanwhile, the Forena Cheonan Dujeong complex commercial spaces are located near the main entrance of the complex, divided into two buildings, and attract attention as street-type commercial spaces, which are gaining popularity as the latest trend. Street-type commercial spaces are lined up along the sidewalks, offering a high sense of openness and the advantage of attracting foot traffic from all directions?east, west, south, and north.

According to a real estate agent in Dujeong-dong, “The Forena Cheonan Dujeong complex commercial spaces secure fixed demand of over 1,000 households in the Dujeong district of Cheonan, which is becoming a new residential area, thus receiving high evaluations in terms of stability. The brand value of Hanwha Construction’s Forena and the fact that it is a street-type commercial space with smooth demand inflow are also expected to attract much interest.”

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

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