Construction Companies Launch Massive Sales in Early Off-Season Period

[Asia Economy Reporter Yoo In-ho] Major construction companies in the top 10 are showing signs of actively launching apartment sales starting from January, which is typically an off-season. These are projects that were delayed due to government regulations such as the implementation of the private land price ceiling system last year.

According to the Korea Real Estate Board on the 5th, among the top 10 companies in construction capability evaluation, including Samsung C&T, Hyundai Engineering & Construction, Daewoo E&C, DL E&C (formerly Daelim Industrial), and GS Engineering & Construction, eight companies plan to issue resident recruitment announcements this month and begin their full-scale sales schedules.

Samsung C&T plans to sell apartments in the Oncheon 4 District redevelopment project in Busan called 'Raemian Forestige' this month. This project was originally scheduled for sale last year but was postponed.

Hyundai Engineering & Construction will launch three complexes at once this month, including the 'Hillstate Cheonggye Central' officetel and 'Hillstate Daemyeong Central' and 'Hillstate Dalseong Park Station' in Daegu. Daewoo E&C will also start its first sales of the year with 1,055 units of 'Suseong The Palace Prugio The Shop' in Daegu, built in a consortium with POSCO Engineering & Construction.

Additionally, in Bupyeong District, Incheon, Daelim Industrial will sell 2,902 units of 'e-Pyeonhansesang Bupyeong Grand Hills,' and a consortium of Lotte Engineering & Construction and POSCO Engineering & Construction will offer 1,140 units of 'Bupyeong Castle & The Shop First' this month. GS Engineering & Construction will make its first sale with 918 units of 'Gangneung Xi Fine Venue' in Gangneung, Gangwon Province.

The reason these companies are unusually launching new sales consecutively from the beginning of the year appears to be the judgment that it is no longer possible to delay the sales schedules postponed by the implementation of the private land price ceiling system at the end of July last year.

In fact, 41,321 units, accounting for 21% of the total planned supply of 238,514 units by the top 10 construction companies this year, were originally scheduled for supply last year.

Last year, the actual supply performance of these companies was 159,765 units, which was only 79% of the initial plan of 201,689 units at the beginning of the year.

Within the industry, concerns are raised that, given the many policy variables this year as well, it is uncertain whether the actual supply will proceed as planned.

A representative from Zigbang said, "Last year, many projects were delayed due to strengthened real estate regulations and the COVID-19 pandemic," adding, "This year, actual supply volume may vary depending on government real estate policies and the schedules of large-scale reconstruction projects."