CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1} Share on Naver

Logistics Tenant Profile # 15 Goyang▪Paju – Three Kingdoms distribution battle for Han River

Carter Kim • 22/04/2024

Goyang-Paju has excellent access to the SMA, as well as large-scale residential areas (Ilsan New Town, Unjeong New Town, etc.) and convenient public transportation, making it easy to supply manpower. Due to these advantages, e-commerce companies are choosing it as a logistics hub, especially along the Seoul Munsan Expressway, which is easily accessible to Seoul. In addition, Paju is the representative publishing city where publishers and printing houses are concentrated, and many book logistics centers are located. Major players such as Kyobo Book Centre, Aladin, and Booxen are operating logistics bases.

123,000 PY of logistics center is scheduled to be supplied by 2024, but only about 13% has started due to the deterioration of the investment environment. The unstarted areas are expected to lead to delays in completion or cancellation of projects, so the supply is expected to decrease significantly compared to the plan.

E-commerce companies occupy the most space (about 48.0%), followed by publishing, manufacturing, fashion, and parcel services. Coupang’s delivery bases and BOLD9, Kyowon Start One’s fulfillment centers are located here. In addition, publishing logistics centers such as Kyobo Book Centre and Booxen are operating centered around the Paju Book City. Also, manufacturing logistics bases of Samsung Electronics and Hyundai Mobis are located.

With the rapid growth of the e-commerce industry, low-interest rate, and financial support measures, the new supply of logistics centers has exploded in the last two to three years. However, supply is expected to decline from 2024 onwards as rising interest rates and construction costs put pressure on new business development and is expected to pick up again after 2026. Meanwhile, the demand for e-commerce logistics is expected to continue to grow, reaching about 1 million PY in 2027.

The comparison of cumulative demand and cumulative supply of warehouses shows that there is a gradual oversupply starting in 2021, but the supply of warehouses will decrease to a peak in 2024, and the oversupply is expected to be eliminated by 2027 as the demand for e-commerce logistics gradually increases.

Cold storage centers increased its supply size by about 6.3 times from 110,000 PY in 2019 to 690,000 PY in 2023, as the early-morning delivery market grew with the launch of Kurly’s early-morning delivery service in 2015, along with expectations for the growth of the online food distribution market. However, contrary to expectations, online penetration of food and grocery has been slow to grow, resulting in stagnant demand for cold storage centers.

Due to the oversupply and demand stagnation, cold distribution centers are expected to resolve oversupply after 2030, and it is necessary to consider various countermeasures such as converting cold warehouses to temperature-controlled warehouses, converting to data centers, etc. for long-term vacancy resolution.

RELATED Insights

Logistics Tenant Profile - Goyang Paju
Insights • Investment / Capital Markets

Logistics Tenant Profile # 15 Goyang▪Paju – Three Kingdoms distribution battle for Han River

Goyang-Paju has excellent access to the SMA, as well as large-scale residential areas (Ilsan New Town, Unjeong New Town, etc.) and convenient public transportation, making it easy to supply manpower. 
Carter Kim • 22/04/2024
card image
Insights • Investment / Capital Markets

Logistics Tenant Profile # 14 Gyeonggi Gwangju – Urban Logistics Battle

Gwangju, Gyeonggi has gained popularity as a logistics hub due to its excellent accessibility to major urban areas like southeastern Seoul, Yongin, Suwon, Seongnam, and Hanam.
Carter Kim • 25/03/2024
Logistics-Tenant-Profile_CardImg-En
Research • Investment / Capital Markets

Logistics Tenant Profile # 13 Siheung·Ansan – Logis-City of Tomorrow

Siheung and Ansan areas can access major cities such as Seoul, Incheon, and Suwon, a densely populated area within one hour by taking advantage of the wide-area transportation network. It is emerging as a logistic base for e-commerce retailers.
Carter Kim • 26/02/2024

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS