[Asia Economy Reporter Donghyun Choi] In the polarized new housing market, areas hosting large corporate industrial complexes continue to show clear strength.
According to industry sources on the 28th, the ‘Tangjeong District Ziwell City Prugio Phase 2’ in Tangjeong District, Asan New City, Chungnam, which was launched in October last year, attracted 37,475 applicants for 423 units (excluding special supply), recording the highest competition rate in the Cheonan-Asan area with an average of 88.59 to 1. The announcement by Samsung Group to invest 13 trillion won in the Asan Tangjeong plant before the sale acted as a positive factor.
In December last year, the ‘Cheongju Gagyeong I-Park Phase 4’ in Gagyeong-dong, Heungdeok-gu, Cheongju, Chungbuk, recorded a competition rate of 89.5 to 1 in the first priority due to its location within a 10-minute drive to the Cheongju General Industrial Complex and Cheongju Technopolis, where SK Hynix, LG Electronics, LG Chem, LS Industrial Systems, SPC Samlip, and others are located.
Generally, housing projects near large corporate industrial complexes show high subscription competition rates. Most workers in large corporate industrial complexes belong to high-income groups, resulting in strong purchasing power for real estate. Especially, demanders who prefer proximity between workplace and residence continue to flow in, making liquidity excellent and rental demand abundant, which results in smaller price declines even during downturns.
For example, the Godeok District, near the world’s largest Samsung Semiconductor Pyeongtaek Plant, maintains a premium despite the overall sluggishness of the Pyeongtaek real estate market. According to the Ministry of Land, Infrastructure and Transport’s actual transaction data, a 71㎡ unit of ‘Godeok Paragon’ in Godeok-myeon, Pyeongtaek-si, Gyeonggi-do, was traded for 380 million won on the 18th floor in January. This is about 50 million won higher than the initial sale price of 329.9 million won.
Kwon Gang-su, director of the Korea Startup Real Estate Information Institute, said, “Areas hosting large corporate industrial complexes continuously attract demand due to employment creation effects, resulting in excellent liquidity and smaller price declines even during recessions. When the local economy recovers, real estate has high potential for price increases, attracting attention from both actual users and investors.”
In the first half of this year, new apartment sales in areas hosting large corporations and large-scale industrial complexes are scheduled, drawing the attention of demanders.
Seohui Construction will launch ‘Cheongdang Seohui Starhills’ at 295-3 Cheongdang-dong, Cheonan-si, Chungnam, at the end of this month. It is located within about 5 km of LG Household & Health Care Future Industrial Complex and within a 10 km radius of more than 10 industrial complexes including Pungse Industrial Complex and the 5th General Industrial Complex, making it a workplace-residence proximity apartment with abundant demand. The Cheongsu Administrative Town, housing various public and financial institutions, is a 5-minute walk away, and KTX Cheonan-Asan Station is a 10-minute drive, providing convenient living infrastructure. The complex consists of 741 units ranging from 59 to 84㎡ (exclusive area) across basement 1 to ground 27 floors, with 221 units available for general sale excluding cooperative member units.
Jeil Construction plans to sell ‘Godeok New City Jeil Poonggyeongchae Phase 2 Edu’ in Block A41 of Godeok New City in March. The complex is near Samsung Electronics Pyeongtaek Campus, the world’s largest semiconductor production plant, and close to Pyeongtaek Brain City, a large-scale advanced industrial complex, as well as the administrative town within Godeok New City. The complex consists of 9 buildings from basement 1 to ground 25 floors, totaling 877 units, mainly composed of small to medium-sized floor plans preferred by demanders.
Shinyoung plans to launch ‘Ulsan Ziwell City Xi’ in Seobu-dong, Dong-gu, Ulsan, in March. Hyundai Heavy Industries is located directly opposite the complex, and large-scale industrial complexes such as Hyundai Mipo Dockyard, Hyundai Motor, Hyundai Steel Ulsan Plant, KCC Ulsan Plant, and Hyundai Mobis Ulsan Yeompo-dong Plant are all within a 20-minute drive. The complex consists of two phases: Phase 1 has 9 buildings from basement 3 to ground 35 floors with 1,371 units ranging from 59 to 84㎡, and Phase 2 has 9 buildings from basement 5 to ground 37 floors with 1,316 units ranging from 84 to 107㎡ exclusive area.
Hanshin Engineering & Construction plans to launch ‘Magok M Valley Phase 9’ in Magok District in March. This is the first apartment complex to be sold in five years in Magok District, a representative industrial complex in Seoul. Last year, the selection process for the developer of the Magok MICE (Meetings, Incentives, Conferences, and Exhibitions) complex, a core commercial district, was completed. The industrial complex houses 150 companies including Lotte Consortium, LG Science Park, E-Land R&D Center, and S-Oil TS&D Center. The complex consists of 19 buildings from basement 2 to ground 16 floors, totaling 1,529 units, with 962 units of 59 to 84㎡ public sale.
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