Myeong-dong, where foreigners return, is ‘vibrant’ with a vacancy rate in the 6% range… Garosu-gil is 40% ‘crying’.

Cushman & Wakefield, analysis of vacancy rate in street commercial areas
Myeong-dong, commercial district vibrant thanks to increase in foreign tourists

On the 7th, the streets of Myeong-dong, Jung-gu, Seoul are crowded with people. After the COVID-19 pandemic, the commercial map of Seoul is changing. In the first quarter of this year (January to March), the vacancy rate of small commercial buildings in Seoul was 5.7%, a decrease of 0.6 percentage points from the beginning of last year (6.3%). During the same period, medium-to-large shopping malls decreased slightly from 8.6% to 8.4%, but group shopping malls increased from 8.0% to 9.0%. In early 2022, Myeongdong’s small commercial vacancy rate reached 42.1%, but in the first quarter of this year, the vacancy rate plummeted to 1.8% due to the recovery of foreign tourism demand. 2024.05.07. Newsis

The Myeong-dong commercial district in Seoul, which was hit hard by the impact of COVID-19, is revitalizing thanks to the increase in foreign tourists.

According to the ‘Seoul Retail Street Commercial District Market Report’ published by global real estate consulting company Cushman & Wakefield (C&W) on the 18th, the average vacancy rate in Seoul’s major street commercial districts in the second quarter of this year was 18.3%, down 0.4 percentage points (p) from the previous year. recorded.

In particular, in Myeong-dong, vacancy has decreased noticeably as the number of foreign tourists has increased. The vacancy rate in Myeong-dong was 6.8%, down 7.6 percentage points from 14.5% last year.

The recovery of the Myeongdong commercial district was led by foreign tourists. Last year, the number of foreign tourists recovered to 60% of the level in 2019 before COVID-19, and in the first half of this year, the number of foreign tourists increased even faster, reaching about 7.7 million. The Hongdae shopping mall vacancy rate also decreased by 1.5 percentage points over the same period, reaching 14.4%.

On the other hand, the vacancy rates in Gangnam, Garosu-gil, Hannam Itaewon, and Cheongdam shopping malls increased compared to last year. In particular, Garosu-gil’s vacancy rate rose 2.9 percentage points from 36.5% last year to 39.4%.

From the second half of 2023 to the first half of this year, Myeong-dong is also the place where the most new stores opened in Seoul’s street shopping districts. By industry, cosmetics stores accounted for about 21.1% of all new stores. This year, in Myeongdong, 9 brands opened stores on the 1st and 2nd floors of Milleore, which had been vacant for a long time.

As a result of C&W’s analysis of credit card sales data from the six major street shopping districts in Seoul, it was found that sales in all districts as of the first half of this year were the same as or exceeded those of the first half of 2019, before the outbreak of COVID-19.

Myeongdong’s sales recovery rate remained in the 70% range until last year, but sales rose significantly this year thanks to the return of tourists. Compared to before the pandemic, medical and lodging-related sales have more than doubled.

Kim Seong-soon, executive director of C&W Retail Headquarters, said, “The number of foreign tourists is approaching the pre-COVID-19 level, and the tourism trend is changing from group tours to individual tours, so efforts to meet the demands of individual tourists will become more important.” He added, “All six major commercial districts are “Sales have recovered to pre-pandemic levels, and in particular, sales in the medical industry have increased noticeably,” he said.

[서울=뉴시스]

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