What do Dongdaemun, Gangbyeon, and Yongsan, the representative shopping districts of Seoul, have ...
Even with favorable locations and favorable conditions... New town shopping centers are mired in a vacancy swamp
• 입지 좋아도, 호재 있어도…'공실 늪' 빠진 신도시 상가
A store worth 150 million won is now selling for 3.02 million won... Dongdaemun's worst vacancy rate ever
• "장사 안돼 투잡, 쓰리잡 뛰어요"…상상초월 공실 폭탄, 최악의 동대문 상황
A property with an appraised value of 100 million won is now selling for 6 million won... The downfall of Gangbyeon Techno Mart, "the worst in 21 years"
• 감정가 1억 매물도 600만원에…"21년 만에 최악" 강변테크노마트의 몰락
Rifles are the norm, and even threats to customers, such as "Do you want to get hit?" The Tragic End of the Yongsan Electronics Market
• 바가지는 기본, 손님에 "맞을래요?" 협박까지…'자승자박' 용산전자상가의 비...
"Gangnam? Then what's the point?"... Garden Five, a symbol of a ghost town for 14 years, how did it end up like this?
• "강남? 그럼 뭐해"...14년째 유령 상가 상징이 된 가든파이브, 어쩌다 ...
Once a representative shopping mall in Seoul, it has been reduced to a "ghost town." Our coverage of the Dongdaemun Shopping Mall, Gangbyeon Techno Mart, and Yongsan Electronics Market reveals a surge in vacancy rates and a significant drop in the appraised value of properties up for auction.
According to GG Auction, a 4-square-meter store on the first floor of Dongdaemun Migliore, valued at 157 million won in August of last year, sold for 3.02 million won at auction. Migliore, a leading shopping mall in the Dongdaemun commercial district, operates up to seven floors above ground as retail space. Above the third floor, the vacancy rate exceeds 50%. On the sixth floor, only five of the 216 stores are open. The remaining 15 are open but without employees.
The situation is similar for Gangbyeon Techno Mart and Yongsan Electronics Market, two of Korea's leading electronics shopping districts. On the eighth floor of Techno Mart, more than 150 of the 392 stores in the complex are vacant. Store rents are non-existent, and management fees are around 250,000 won per space. Despite this, no tenants are interested. The Yongsan Electronics Market has also seen a significant increase in vacancy due to a decline in customers. According to a big data firm, among 153 major commercial districts in Seoul, Yongsan Electronics Market experienced the largest decline in sales last year compared to 2019. Sales fell by a staggering 52.7 billion won over three years. The decline in popularity of electronics shopping centers contributed to the significant decline in sales. The decline in sales was much greater than that of Seolleung Station, second place (35 billion won), and Cheongdam Station, third place (33.5 billion won).
Experts predict that theme-based commercial complexes will struggle to survive under the current system. A critical problem for theme-based commercial complexes is that they specialize in a single industry, making it difficult to quickly adapt to changing trends. For example, if electronics sales are struggling, a change in industry is easily achieved, but changing the industry in a complex requires the consent of a majority of the owners. Because of the differing interests of the merchants, changing industry is difficult. This is because each floor is divided into numerous stores, resulting in hundreds of owners. / Park Ki-hong, Reporter, Ddangjipgo [email protected]
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