It has been revealed that knowledge industry centers, which were popular investment destinations during the real estate boom, are being put up for auction due to a vacancy crisis.
According to GG Auction, a company specializing in auction and public auction data, a total of 688 knowledge industry centers appeared in the auction market last year, a 70% increase compared to the previous year (403).
Although listings were pouring in, less than 30% of the properties found owners.
Only 28.9% of the properties for sale found owners, which is a 16.3% point lower success rate compared to 2022 (45.2%).
The ratio of successful bid price to appraised price also decreased from 88.7% in 2022 to 71.2% last year.
Knowledge industry centers, where manufacturing, knowledge industry, information and communication industries, and other businesses and their support facilities can move in, are free from various regulations, so they attracted the attention of investors during the real estate boom.
Unlike houses, various real estate regulations, such as resale restrictions, can be avoided, and loans of up to 80% of the sale price can be obtained, leading to oversupply mainly in the metropolitan area.
The problem is that as demand has decreased due to the recent economic downturn, large-scale vacancies are occurring in knowledge industry centers across the country.
In addition, as interest rates rise, it appears that properties from investors who invested excessively in debt but were unable to repay the loan principal and interest on time are pouring in at auction.
(Photo = Yonhap News)