"There Are Still Opportunities"... 55 Housing Developments Left This Year from Top 10 Construction Companies

General Sale of 51,582 Households... 32,360 in the Seoul Metropolitan Area and 19,222 in Provinces Scheduled

[Asia Economy Reporter Onyu Lim] As the apartment sales market approaches its final phase this year, it has been found that there are 55 sites nationwide, totaling about 76,000 units, remaining for sale by the top 10 major construction companies. While competition for subscription to large construction companies' sales is usually fierce, this year presents a good opportunity for non-homeowners to secure their own homes, as the volume of sales is more than 3.5 times that of the same period last year.

According to real estate research firm Realtoday on the 25th, the total number of units scheduled for supply nationwide by large construction companies (based on 2020 construction capacity evaluation) from October to December is 76,140 units (including rental, excluding officetels), of which 51,582 units are for general sale. This is more than 3.5 times the general sale volume supplied by large construction companies (based on 2019 construction capacity evaluation) during the same period last year (14,731 units nationwide, 5,229 units in the metropolitan area, 9,502 units in other regions).

The general sale volume in the metropolitan area is 32,360 units (29 sites, 62.7%), while in other regions it is 19,222 units (26 sites, 37.3%).

By city/province, Gyeonggi region accounts for the largest share with 14,584 units (16 sites, 28.3%), followed by Incheon with 13,154 units (7 sites, 25.5%), Seoul with 4,622 units (6 sites, 9.0%), Busan with 3,882 units (5 sites, 7.5%), Daegu with 3,130 units (6 sites, 6.1%), Gyeongbuk with 3,031 units (3 sites, 5.9%), and Daejeon with 1,900 units (2 sites, 3.7%).

The scheduled sales units by construction company this year are as follows: POSCO Construction with 11,346 units (10 sites), GS Construction with 10,005 units (9 sites), Daelim Industrial with 9,122 units (10 sites), HDC Hyundai Development Company with 4,897 units (3 sites), Samsung C&T with 3,852 units (3 sites), Lotte Construction with 3,844 units (3 sites), Hyundai Construction with 2,721 units (4 sites), Hyundai Engineering with 2,972 units (8 sites), Daewoo Construction with 2,488 units (4 sites), and SK Construction with 335 units (1 site).

Large construction companies' sales complexes also show strength in the subscription market. According to data from the Korea Real Estate Agency's Subscription Home, among the top 10 complexes nationwide in terms of first-priority subscription competition rate over the past five years (January 2015 to September 2020), seven were supplied by large construction companies. Regionally, among the top 10, eight are in the metropolitan area and seven in other regions. Also, complexes with high subscription competition rates from January to September this year were predominantly supplied by large construction companies (seven in the metropolitan area, six in other regions).

In the actual sales market, large construction companies also have an advantage in complex sale prices compared to other companies. According to the Ministry of Land, Infrastructure and Transport, the 84.73㎡ unit (exclusive area) of 'Samsong 2nd I-Park' supplied by HDC Hyundai Development Company in Samsong-dong, Goyang-si, Gyeonggi-do (moved in 2015) was traded last month for 895 million KRW. This is nearly 500 million KRW higher than the original sale price (398.8 million KRW). In contrast, the 'Samsong Star Class' by Geukdong Construction, located within walking distance of this complex (moved in 2015), saw its 84.98㎡ unit traded in August for 740 million KRW, only about 380 million KRW higher than the sale price (363.8 million KRW).

The same trend is seen in other regions. The 80.58㎡ unit of 'Marine City Xi' supplied by GS Construction in U-dong, Haeundae-gu, Busan (moved in 2019) was traded for 1.14 billion KRW in August this year. However, 'Haeundae Centum Mijin IGBIA' by Mijin Construction, located in the same neighborhood and directly adjacent to BEXCO Station on Busan Subway Line 2, saw its 84.99㎡ unit traded for only 659.9 million KRW, showing a significant difference.

A Realtoday official explained, "Large construction companies have extensive experience in overseas plants, civil engineering, and infrastructure, giving them deeper know-how and expertise compared to general construction companies. This applies to housing projects as well, resulting in superior recognition, reliability, and product quality, along with thorough after-sales service after completion, making them highly preferred in the sales market." Additionally, the potential to become a local landmark contributes to high expectations for housing price increases.

◆ Metropolitan Area Sales Schedule from October to December This Year

Lotte Construction plans to sell 'Daegok Station Lotte Castle El Classy' in Todang-dong 251-12, Deogyang-gu, Goyang-si, Gyeonggi-do in October. The complex consists of 12 buildings from basement level 2 to 29 floors, with units ranging from 59 to 84㎡, totaling 834 units, of which 254 units are for general sale. The complex is near Daegok Station, a transfer station for Subway Line 3 and the Gyeongui-Jungang Line, and Neunggok Station on the Gyeongui-Jungang Line. GTX-A (opening at the end of 2023) and the Seohae Line (Daegok to Sosa) are also planned, creating a quadruple (4-line) transit network. Especially, once the Seohae Line opens, it will be just one stop away from Gimpo Airport, a transfer station for Lines 5, 9, and the Airport Railroad, enabling 30-minute access to Mapo, Gongdeok, Yeouido, and Gangnam.

HDC Hyundai Development Company plans to sell 'Gocheok I-Park,' a public-supported private rental housing complex developed on the site of the Seoul Southern Correctional Facility in Gocheok-dong 100-7, Yeongdeungpo-gu, Seoul, in November. The complex will have 2,205 units of 64 and 79㎡, consisting of six residential-commercial mixed-use buildings up to 45 floors and five apartment buildings up to 35 floors. The complex is within 500 meters of Line 1 Gaebong Station and offers convenient access to Gyeongin-ro and Seobu Expressway. Nearby are four elementary, middle, and high schools: Gocheok Elementary, Gocheok Middle, Gyeongin Middle, and Gyeongin High School.

Daelim Industrial plans to supply 'e-Pyeonhansesang Bupyeong Grand Hills' in Cheongcheon-dong 36-3, Bupyeong-gu, Incheon, in November. The complex consists of 31 buildings from basement level 3 to 43 floors, totaling 5,050 units, of which about 2,900 units sized 37 to 84㎡ are for general sale. Nearby, the San-gok Station, part of the Seoul Subway Line 7 extension project, is planned, and amenities such as Cheongcheon Elementary and Middle Schools, E-Mart, Lotte Mart, and Lotte Cinema are close by.

Hyundai Construction plans to sell 'Hillstate Bongdam,' a public-supported private rental housing complex, in Bongdam-eup, Hwaseong-si, Gyeonggi-do, in December. The complex will consist of 11 buildings, 25 floors each, with units ranging from 62 to 84㎡, totaling 1,004 units.

◆ Regional Sales Schedule from October to December This Year

HDC Hyundai Development Company and POSCO Construction plan to supply 'Gumi I-Park The Sharp' in Wonpyeong 1 District, Wonpyeong-dong 330-2, Gumi, Gyeongsangbuk-do, in October. The complex will have 12 buildings up to 42 floors, with units ranging from 39 to 101㎡, totaling 1,610 units, of which 1,314 units are for general sale. It is the tallest complex in Gumi and includes a large park about twice the size of a soccer field (approximately 16,000㎡). Gumi Elementary School is right next to the complex, and access to the Gumi National Industrial Complex, home to Samsung Electronics and LG Electronics, is convenient.

GS Construction plans to sell 'Gangneung Xi Fine Venue' in Naegok-dong 102, Gangneung, Gangwon-do, in November. The complex consists of 11 buildings from basement level 3 to a maximum of 27 floors, with units ranging from 74 to 135㎡, totaling 918 units. The complex is about 2 km from KTX Gangneung Station and near National Routes 7 and 35, which connect to Gangneung IC. Nearby are Namsan Elementary School-affiliated Kindergarten, Namsan Elementary School, and eco-friendly ecological streams such as Namdaecheon, Namsan Park, and Dano Park, all within walking distance.

Daewoo Construction and POSCO Construction plan to supply 'Suseong The Palace Prugio The Sharp' in Padong 27-17, Suseong-gu, Daegu, in November. The complex consists of 18 buildings from basement level 2 to 28 floors, totaling 1,299 units, of which 1,055 units sized 59 to 84㎡ are for general sale. Nearby are Padong Elementary and Suseong Middle Schools, and Padong IC is adjacent, facilitating easy access to other areas.