A 20-story office building by Shinsegae Group will be constructed in Nonhyeon-dong, Gangnam District, Seoul. The Nonhyeon-dong Furniture Street is the largest furniture distribution area in the country, formed between Nonhyeon Station and Hakdong Station on subway line 7, and is also referred to as 'Furniture No. 1 Street.'
According to the maintenance industry on the 2nd, the Seoul Metropolitan Government and Gangnam District are in the process of designating a district unit plan for the construction of an office building with a height of 110.5 meters (from basement levels 4 to 20) on a 3,420.5 square meter site at Nonhyeon-dong 55-16.
This project is part of the Seoul Metropolitan Government's 'Transit Station Activation Project.' To revitalize relatively underdeveloped areas, the city is targeting regions within 350 meters of subway stations for this project. When landowners apply for site selection, the zoning regulations are adjusted, allowing a maximum floor area ratio of up to 1000%.
The land where the office building will be located at Nonhyeon-dong 55-16 is owned by Shinsegae Central City, a subsidiary of Shinsegae Group. Shinsegae Central City is involved in the real estate leasing business, which manages properties including the Central City building in Banpo-dong, where Shinsegae Gangnam is located, and the JW Marriott Hotel, with Shinsegae being the largest shareholder (holding 60.02% equity).
The zoning will be upgraded from a general residential area to a general commercial area. A floor area ratio of 800% and a building coverage ratio of 60% will apply, and as a form of public contribution, 34.4% (equivalent to 1,175.8 square meters) will be dedicated to the installation of necessary local facilities and cash contributions. A Gangnam District official noted that 'the lower floors from 1 to 4 will include sales facilities linked to the furniture street and a women's entrepreneurship platform called Gangnam Craft Plaza, while the upper floors are planned for office use.'
The total project cost is estimated at 468 billion won. Shinsegae Central City plans to sell the land to secure financing for the project and establish a project financing vehicle (provisional name: Nonhyeon Complex Development PFV), followed by obtaining project financing loans and collateral loans. The goal is to begin construction in March 2026 after acquiring the necessary building permits and structural reviews from the Seoul Metropolitan Government.
Gangnam District announced that it is planning a landmark design for the building, considering the revitalization of Nonhyeon-dong Furniture Street and the connection of lower public spaces with retail facilities. Yang Hae-geun, a real estate expert at Samsung Securities, stated, 'As more people are purchasing furniture online recently, the Nonhyeon-dong Furniture Street has lost some of its previous vibrancy. The introduction of a large-scale office facility will increase pedestrian traffic and consumer spending, which will also help revive the furniture street's commercial district.'
Meanwhile, Shinsegae Group is also conducting a development project at the site of the former Prama Hotel in Cheongdam-dong, Gangnam District (Le Pied Cheongdam) as part of the Seoul Metropolitan Government's Transit Station Activation Project. The developer, Shinsegae Property, has decided to develop the area surrounding Cheongdam-dong 52-3 into a hotel-focused project, and the Seoul Metropolitan Government designated this area as a target for the transit station activation project in September last year.