Development of Gangnam
In the 1970s, overcrowding caused problems such as lack of infrastructure facilities and environmental degradation.
as the population concentrated in the north of Seoul ▶ Development of Gangnam, formerly an agricultural area, was initiated in the 1980s.
According to the Yeongdong District development plan, Gangnam was to be primarily residential (92% residential, 89% commercial), with small plot sizes
Smaller plot sizes mainly attracted individual investors with a significant proportion of purchases for speculation. As such, new construction activity on the area was relatively scarce.
The government aimed to ease new building supply by implementing *land excess profits tax.
Gangnam saw an increase in new office building supply after the enactment of the Land Excess Profits Tax. However, small offices dominated the new supply as small plot size and high proportion of individual-owned lands led to a relatively higher construction cost.
INDEX
Part1. Why so many small offices in Gangnam?
Part2. Key Characteristics Rent & Cap.Rate
Part3. Conclusion
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Development of Gangnam
In the 1970s, overcrowding caused problems such as lack of infrastructure facilities and environmental degradation.
as the population concentrated in the north of Seoul ▶ Development of Gangnam, formerly an agricultural area, was initiated in the 1980s.
According to the Yeongdong District development plan, Gangnam was to be primarily residential (92% residential, 89% commercial), with small plot sizes Smaller plot sizes mainly attracted individual investors with a significant proportion of purchases for speculation. As such, new construction activity on the area was relatively scarce.
The government aimed to ease new building supply by implementing *land excess profits tax.
Gangnam saw an increase in new office building supply after the enactment of the Land Excess Profits Tax. However, small offices dominated the new supply as small plot size and high proportion of individual-owned lands led to a relatively higher construction cost.
INDEX
Part1. Why so many small offices in Gangnam?
Part2. Key Characteristics Rent & Cap.Rate
Part3. Conclusion