Administrative Town and Station Area with Strong Demand: 'Forena Ruwoon City' In-Complex Commercial Space

According to a KB Real Estate survey, the Seoul apartment buyer dominance index, which soared to 154.4 just before the July 10 real estate measures, has weakened for eight consecutive weeks, falling to 101.5 and approaching the baseline (100). Trends from KB Live On, Korea Appraisal Board, and Real Estate 114 also show that apartment price growth rates have gradually decreased and are now hovering in a firm but stable range. This trend has led to forecasts that prices will decline this winter and next spring.

According to a real estate official, "Buying housing for short-term profit during a period of heavy regulation like now carries significant risks." At this point, non-residential properties are showing stronger performance than residential properties for simple investment purposes.

In particular, as the government continues to announce high-intensity real estate measures, the housing market is freezing up, creating a balloon effect where regulations are driving up commercial and office-type real estate markets such as retail stores and officetels.

Officetels have been considered highly preferred real estate products, actively traded in the ultra-low interest rate era, based on their relative freedom from loan and resale restrictions. However, recently the government announced that residential officetels will be included in the housing count, subject to property tax, and regulated for loans, making even this option difficult.

This bill, announced as a follow-up legislation to the July 10 real estate measures focusing on increased acquisition tax for corporations and multi-homeowners, was unexpectedly amended during the standing committee approval process, differing from the originally submitted draft. According to this bill, residential officetels will also be counted as owned housing when determining acquisition tax surcharges.

As a result, attention is rapidly increasing toward newly supplied retail stores in key locations nationwide that fill this niche market. Especially, retail stores within complexes that have solid fixed demand 24/7 depending on the business type, and those near government offices with abundant hinterland demand, are showing clear upward trends.

Retail stores within complexes have high utilization rates because apartment residents can enjoy consumption activities without inconvenient travel outside the complex. Based on solid fixed demand, it is advantageous for recruiting tenants, making it attractive not only for those who want to operate stores directly but also for stable rental businesses.

Retail stores near government offices and administrative towns have abundant hinterland demand due to the steady influx of related workers and visitors. Given the nature of public institutions, relocations are rare, making these stores suitable for long-term investment. They are less sensitive to economic fluctuations and have strong downward rigidity even during recessions.

Incheon Luwon City is planned to be developed as the central city of the northwest region of Incheon, with the Luwon Complex Government Building scheduled for construction and lifestyle infrastructure such as a complex shopping mall being expanded, leading to continuous population inflow.

Luwon City is a compact city with locational advantages and immense value, maintaining steady demand. With the full-scale introduction of high-rise apartments over 40 floors, mixed-use buildings, commercial facilities, and an administrative town, it is expected to rise as an impactful luxury city.

Foretna Luwon City retail stores, which possess a golden commercial area with a jar-shaped commercial district and station proximity, highlight the premium of exclusive demand from the 1,128-unit Foretna apartment complex, as well as fixed demand from approximately 5,000 households around the complex.

Foretna Luwon City, adjacent to the central commercial district, was the first general apartment supply in the area, recording the highest first-priority subscription competition rate of 20.27:1 in Luwon City and selling out early. It offers convenient access to the double station area of Incheon Subway Line 2 Gajeong Station and the planned Line 7 extension Luwon City Station. Furthermore, the opening of the Seoul Subway Line 7 Cheongna extension is expected to increase future value significantly.

The retail stores within the Foretna Luwon City complex will be constructed with 208 units from basement level 4 to ground level 1. Located in front of the complex, they are expected to absorb abundant fixed demand from the complex administrative town and Incheon’s second government office, as well as the annual 400,000 administrative agency floating population. The space will be designed as a complex area encompassing culture, relaxation, and dining, moving beyond a simple shopping space.

Foretna Luwon City’s retail stores will be developed as a complex street-type shopping area with elevators and escalators installed to maximize accessibility and enhanced visibility. Through systematic MD composition, customer satisfaction will be increased. The nearby Cheonmasan Natural Recreation Forest, currently under development, is expected to attract even more floating population.

A sales official stated, "Since the second half of the year, actual contracts have been steadily continuing, and retail store inventory is rapidly depleting." They added, "The product competitiveness of the retail stores, priced affordably with consideration of hinterland demand and floating population, and equipped with customer convenience facilities, is receiving favorable reviews, and we expect to announce a sell-out soon."

Meanwhile, the promotional center is operating at Room 114, 1st floor, 619-7 Gajeong-dong, Seo-gu, Incheon, in the 3M Tower. For related information and inquiries, please contact the main phone number.

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