Commercial Real Estate Prices Going Through the Roof

      February 23, 2016 11:16

      Cosmetics store Nature Republic in Myeong-dong, remains Seoul's most expensive piece of real estate for the 13th straight year with 3.3 sq.m valued at W275 million (US$1=W1,235).

      The values of the new Lotte World shopping mall in Jamsil and Hyundai Motor headquarters plot in Samseong-dong also soared around 10 percent compared to last year.

      The Ministry of Land, Infrastructure and Transport on Monday that Nature Republic's Myeong-dong store jumped 30 percent compared to 2015 and up around two-fold compared to 2004, when the property first rose to the No. 1 spot.

      The top 10 most expensive pieces of real estate remained unchanged, with nine in Myeong-dong and one in Toegyero, downtown Seoul, all costing more than W200 million per 3.3 sq.m.

      They are all occupied by cosmetics or clothing stores in areas of the capital frequented by Chinese and Japanese tourists.

      The huge plot of land Hyundai acquired for W10.55 trillion in 2014 to build a new headquarters rose 11 percent in value from W84 million per 3.3 sq.m last year to W94 million.

      The Lotte World shopping mall, which opened in late 2014, also saw values go up from W119 million per 3.3 sq.m to W130 million over the past year.

      Real estate prices on some tourism islands are also soaring. The price of a commercial piece of real estate on Udo Island off the coast of Jeju Island surged more than 100 percent from W92,000 per 3.3 sq.m in 2011 to W220,000 this year as visitor numbers soared.

      Even on the remote and seasonally inaccessible islets of Dokdo, land prices keep rising. One plot increased from W165,000 per sq.m in 2011 to W980,000 this year.

      "Dokdo is seeing a surge in the number of tourists, and the government continues to invest in the islets to build defense facilities," a ministry official explained.

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