Gangnam-daero Mega Development Project Benefits High-End Officetel 'Luca831' Avoiding Loan Regulations, Sales Progressing Smoothly

- Gangnam's Largest Office Town, Gyeongbu Expressway Underground Project Accelerates
- Apartment Prices Soar, High-End Residential Facilities Also Sold Out

As large-scale development projects are actively promoted in the Gangnam-daero area, considered the most prime location in Seoul, a seismic shift in the Gangnam real estate market is anticipated. Industry experts predict that the large-scale complex development around Gangnam Station, along with the Samsung-dong GBC development project, will be a massive project that will drastically change the geography and center of Gangnam.

An industry expert stated, “Since the arrival of Samsung Town, land prices around Gangnam Station have nearly tripled in 4 to 5 years,” adding, “Once development projects such as the Seocho-ro district unit plan, the undergrounding of the Gyeongbu Expressway, and the development of the former Intelligence Command site are completed, the effect will surpass that of Samsung Town. The Gangnam-daero area and Samsung-dong GBC area will emerge as the two main pillars of Gangnam’s development projects.”

According to Seoul City, the Seocho-ro district unit plan special zone, which is the last remaining prime land in Seoul, rapidly progressed last year when Seocho-gu designated the surrounding area as the ‘Seocho-ro district unit planning zone’ and created development plans.

The special planning zone is currently being changed from a Type 3 general residential area to a general commercial area, allowing the construction of ultra-high-rise office buildings. Once completed, the area around Gangnam Station is expected to form the largest office town in Gangnam.

First, Seoul City decided on the development plan for the Kolon site. The Kolon Sporex site, covering 8,900㎡, will feature a sports complex mall with a swimming pool and bowling alley, as well as a multi-use office facility above ground. Construction is scheduled to begin in 2023, with architectural design, various impact assessments, and building approvals underway. As the Kolon site plan materializes, the development of the Seocho-ro district unit planning zone is expected to accelerate.

Moreover, the undergrounding project of the Gyeongbu Expressway section from Hannam IC to Yangjae IC is gaining momentum. The plan involves undergrounding the highway and constructing a massive park and approximately 20,000 apartment units above ground. Seoul City is expected to allocate an additional budget of 600 million KRW to conduct feasibility studies and establish basic plans for the project.

Additionally, the development of the nearby former Republic of Korea Intelligence Command (Jeongsosa) site has become visible. Last month, the 5th Urban and Architectural Joint Committee approved the detailed development plan for the special planning zone within the Seoripul district unit planning area. Seocho-gu plans to create a 4th Industrial Revolution cluster on 96,797㎡ of the 160,000㎡ Jeongsosa site, excluding park areas, to nurture talent in advanced fields. Furthermore, Seocho-gu is promoting the development of the Yangjae-Umyun R&CD special zone, covering 3 million㎡ in the Yangjae and Umyun-dong areas, as a core hub for the 4th Industrial Revolution.

In the Gangnam Station area, supply of branded apartments and luxury officetels is also active. The branded apartments completed through reconstruction along Gangnam-daero total about 5,000 units. Based on an 84㎡ exclusive area, Seocho Grand Xi is priced between 2.95 billion and 3.5 billion KRW, and Raemian Leaders One is priced around 2.9 billion to 3 billion KRW, maintaining the reputation of the affluent neighborhood.

High-end officetel sales for the top 1% near Gangnam Station are also progressing smoothly. ‘Le Pied in Gangnam’ (140 units) recently completed contracts for commercial facilities and officetels.

Additionally, Luca831, consisting of a total of 337 units near Gangnam-daero, is the largest high-end officetel in Gangnam, recording a peak subscription competition rate of 47.5 to 1, leading the Gangnam high-end officetel market. Currently, sales are closed except for some units.

Through specialized design, the entire building facade features an arch shape, and it plans to offer the best design and services, including an infinity pool boasting the best views. The rooftop infinity pool on the 29th floor offers an unobstructed city view and can host private pool parties, generating high expectations. Convenience facilities such as fitness centers are arranged, and various concierge services including valet parking, breakfast service, and move-in cleaning service are provided to ensure a top-tier lifestyle. Premium commercial facilities will be established on the 1st and 2nd floors to enhance convenience.

Not only does the area have excellent transportation conditions, but transportation benefits are also anticipated, which is expected to increase future value. Gangnam Station, a double station served by the Sinbundang Line and Line 2, is located within a 5-minute walk, providing excellent transportation access. The first phase of the Sinbundang Line extension connecting Gangnam to Sinsa is scheduled to open in 2022. Furthermore, with the promotion of the Sinbundang Line northwest extension project under the 4th National Railroad Network Construction Plan, transportation conditions are expected to improve further.

A real estate expert said, “Once large-scale complex developments such as the Seocho-ro district unit plan, Yangjae-Umyun R&D special zone, and Jeongsosa site are fully underway, this area will emerge as a complex residential and business district that is the center of the international business district and a high-end residential area,” adding, “In addition to excellent location and high future value, interest from high-net-worth individuals is increasing in the complexes that have avoided the 70% loan-to-value (LTV) regulation applied to officetels since May 17 by the government.”

The Luca831 promotional center, Luca Lounge, is located in Gangnam-gu, Seoul, and visits are available by prior reservation. Move-in is scheduled for September 2024.

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