Life is 'Convenient', Housing Prices 'Soar'... Supply Complex in Central Commercial Area 'The Sharp Yeondong Avenue'

Jeju's Central Commercial Area 'Yeondong', Premium Residential Product 'The Sharp Yeondong Avenue' Landing in June

Recently, there has been growing interest in residential products supplied within central commercial districts. This is because complexes located in central commercial areas have shown steep house price increases, playing a leading role in regional market trends.

A central commercial district refers to an urban area that serves as a hub for commerce, business, and transportation. In addition, it can be developed for various uses such as residential purposes, and due to the high foot traffic, multiple infrastructures are well-developed, resulting in high residential convenience. For these reasons, complexes supplied within central commercial districts show a higher price increase compared to those supplied in general residential areas.

For example, the current market price of ‘Haeundae Dalmaji Yurim Norway Forest (moved in July 2017)’, which was supplied in a general residential area of Haeundae-gu, Busan, is 19.5 million KRW per 3.3㎡, which is about 69% higher than the original price of 11.54 million KRW per 3.3㎡. Similarly, ‘Haeundae Hillstate Wave (moved in February 2015)’ nearby also showed an increase of about 54%, from 15.11 million KRW to 23.22 million KRW per 3.3㎡.

On the other hand, ‘Haeundae LCT (moved in November 2019)’, located in the prime central commercial area of the same Haeundae-gu, was sold at an average of 27.55 million KRW per 3.3㎡, but its current market price has soared to 55.32 million KRW per 3.3㎡, more than doubling in price. Built on the former sites of the Geukdong Hotel and Korea Condo, this luxury residential-commercial complex has established itself as a landmark representing Busan, leveraging its locational advantages.

As such, central commercial districts, which offer not only residential convenience but also high profitability, are attracting strong interest from both end-users and investors. In Jeju, ‘Yeondong’ is gaining attention.

Yeondong is regarded as the prime central commercial district representing Jeju. It is home to ‘Nuwemaru Street (formerly Baojen Street)’, known as a small Chinatown within Jeju, and the mega complex shopping mall ‘Nine Mall’. Additionally, numerous hotels such as the Grand Hyatt Jeju and Jeju International Airport are located very close by, boasting abundant foot traffic and a high-end commercial district.

Yeondong is also showing a high rate of house price increase. According to the Ministry of Land, Infrastructure and Transport’s real transaction price disclosure system, an 84㎡ unit in ‘Daelim e-Pyeonhansesang 2nd Phase (moved in January 2002)’ located in Yeondong was traded for 850 million KRW last month. Compared to the transaction price three years ago (630 million KRW in June 2020), this is an increase of 220 million KRW.

According to Naver Real Estate, the asking price for an 84㎡ unit in this complex currently reaches up to 980 million KRW. This means that the price per 3.3㎡ for this over 20-year-old apartment is close to 30 million KRW.

A representative from Yeondong A Real Estate Agency stated, “Recently, due to the sharp rise in building material and labor costs, construction companies are facing increased construction expenses. Additionally, Jeju’s geographical characteristic as an island causes extra logistics costs, making new supply even more difficult.” He added, “In this context, POSCO E&C (formerly POSCO Construction) is known to be supplying premium residential products in Yeondong this month, which has led to a surge in related inquiries.”

He continued, “With rising construction and basic building costs, the initial sale price may feel somewhat expensive as it is introduced as a premium product. However, the reason why there is strong interest not only in Jeju but also in the metropolitan area is because high future price appreciation is expected.”

In fact, expectations are rising that Yeondong, the prime central commercial district, will become Jeju’s new residential center, led by POSCO E&C’s June supply announcement of ‘The Sharp Yeondong Avenue’.

‘The Sharp Yeondong Avenue’ will be built in the Yeondong area, consisting of 204 households with underground 5 floors to above ground 18 floors, and exclusive areas of 69㎡ and 84㎡. Commercial facilities will also be developed from the basement first floor to the ground first floor, enabling a one-stop lifestyle where residents can enjoy everything within the complex.

POSCO E&C, which has introduced landmark complexes in various regions such as Busan LCT, Songdo International City, and Yeouido Park One, is launching ‘The Sharp’ apartments for the first time under its new brand name. Therefore, it is expected to apply a high-quality, high-end premium product never seen before.

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