[2020 Apartment Brand Awards] Brand Becomes Equivalent to Housing Prices

[Asia Economy Reporter Moon Jiwon] The importance of apartment 'brand' value is increasing day by day. As the domestic housing market becomes more competitive due to the contraction of the overseas order market, construction companies are focusing more on enhancing brand value to attract buyers. Residents also frequently attempt to rename their apartments with the latest brand names from construction companies, as apartment prices can differ by tens of millions of won depending on the 'signboard.' In other words, the brand has literally become the house price.

According to a survey conducted by Asia Economy on the 28th, commissioned to the market research specialist Open Survey, the brand was confirmed as the most important factor for buyers when purchasing an apartment. When asked, "To what extent do you think the apartment brand affects the apartment price?" out of 500 respondents, 446 (89.2%) answered "It affects," while only 11 respondents (2.2%) answered "It does not affect."

In response to the question, "What is the most important factor when choosing an apartment?" 71 people (14.2%) chose "brand." Excluding basic options such as price, transportation, and natural environment, it was selected as the most important factor.

Although the real estate market has been severely depressed due to the spread of the novel coronavirus infection (COVID-19), brand apartments by major construction companies in Seoul, the metropolitan area, and provinces continue to enjoy a boom, with most sales closing at the first priority with high competition rates. Even as urgent sales in Gangnam area reconstruction complexes drop by hundreds of millions of won, the price defense of famous brand apartments remains strong, demonstrating the power of the brand.

Construction companies are also striving to enhance the value of their own 'brands.' Ssangyong Construction launched a new brand, 'The Platinum,' at the end of 2018 and has continued successful performances this year in Seoul, Busan, Daegu, and other locations. Hyundai Construction, Daewoo Construction, Hoban Construction, and others have also been working on improving their image by redesigning their brand design and logo (BI) last year. Other construction companies are also going all out by introducing various smart technologies and eco-friendly structures.

Companies selected for the comprehensive grand prize, including Daelim Industrial's ACRO and GS Construction's Xi, as well as those awarded the Asia Economy Apartment Brand Award this year, are recognized for their product value in the market through differentiated brand strategies.

By category, the winners are ▲Specialized Residential: Hyundai Construction's 'Hillstate' ▲Complex Residential: Daewoo Construction's 'Prugio' and POSCO Construction's 'The Sharp' ▲Design: Lotte Construction's 'Lotte Castle,' Hanwha Construction's 'Forena,' and SK Construction's 'SK View.' Additionally, ▲Smart Home: HDC Hyundai Development Company's 'IPARK' ▲Power Brand: Ssangyong Construction's 'The Platinum' and Shindongah Construction's 'Familie' were selected. In the Special Residence category, which asks about influence in the rental housing and residential welfare market, Seoul Housing and Communities Corporation (SH Corporation)'s 'Cheongsinho' was chosen.

Meanwhile, the '2020 Apartment Brand Preference Survey' was conducted targeting major domestic construction company brands selected through rigorous preliminary research. Open Survey conducted a survey on preference, awareness, satisfaction, and brand image evaluation among 500 adult men and women aged 20 to 60 nationwide. The sampling error is ±4.38 percentage points at a 95% confidence level.