Myeong-dong is no longer Seoul's priciest district for store rent

Economy

Published: 08 Mar. 2024, 10:52 Updated: 10 Mar. 2024, 15:27

Myeong-dong is no longer Seoul's priciest district for store rent

A photo of Bukchang-dong Food Culture Street in Jung District, central Seoul, on Wednesday. [YONHAP]

Best known for the clustering of sundubu jjigae (spicy tofu stew) restaurants, Bukchang-dong in central Seoul displayed the highest rent fees in Seoul last year. Myeong-dong, also in central Seoul, was pushed to second, which had the highest fees in 2022.

According to a report by the Seoul Metropolitan Government Wednesday, Bukchang-dong's monthly average store rent stood at 10.9 million won ($8,190), while Myeong-dong's was 10.5 million won last year.

The Seoul Metropolitan Government conducted a study of 12,531 stores on the first floor of buildings in major business areas in Seoul from August to November last year. The study collected data on 18 items, including store rent and maintenance fees.

The report showed that stores paid an average of 74,900 won per square meter (10.8 square feet) for their monthly general rent, which is a sum of the monthly rent, public maintenance fee and the deposit converted on a monthly basis.

In other words, considering that the average net leasable area for each store is 60.2 square meters, a store averagely pays a total of 4.5 million won monthly for rent.

Last year, stores in Bukchang-dong had to pay the most rent with 180,000 won per square meter, pushing Myoeng-dong Street to second place on the list with 173,700 won.

Other following areas were Myeong-dong Station with 153,600 won, Apgujeong Rodeo Station with 140,800 won and Gangnam Station with 137,900 won.

Experts say that Bukchang-dong being populated with office workers, unlike Myeong-dong with tourists, contributed to the steady increase in its rent.

The area with the highest sales profit was City Hall Station in Jung District with 960,600 won per square meter.

Sinchon Station in Seodaemun District, western Seoul, came next with 957,700 won, followed by Dongdaemun History & Culture Park (DDP) Station in Jung District with 944,000 won and Daechi Station in Gangnam District with 885,300 won.

BY HAN JEE-HYE [kim.jiye@joongang.co.kr]