Renaming 'Mibunyang' to Hide Negative Image in Ads
Essential to Check Basic Info Like Market Price and Move-in Volume Before Contract
"Special Sale of 20 Units Owned by the Company! All Types Nearly Sold Out!"
Jeon (37), an office worker living in Gangseo-gu, Seoul, recently received an eye-catching text message. Interested in apartment subscriptions in the Gyeonggi area but far from winning, Jeon clicked on the link provided in the message after seeing the phrase "special sale of company-owned units" and entered the related site.
It was said that anyone could apply without owning a house or even a subscription savings account. Various prize events, including giveaways of air fryers, were also underway. However, after considering the contract, Jeon completely gave up hope upon understanding the meaning of "company-owned units." This phrase was just another term for "unsold units."
As the real estate market downturn deepens and unsold apartment units surge, advertisements using phrases like "special sale of company-owned units" and "first-come, first-served special sale" have become rampant. Such sales banners can be found in most areas of Incheon and Gyeonggi Province. For example, in June, the A complex in Bullo District, Seo-gu, Incheon, which completed sales, is currently conducting first-come, first-served contracts with designated units for remaining units. In the Gongheung District of Yangpyeong, the B apartment complex is running a first-come, first-served contract event offering two free air conditioners.
Company-owned units refer to the inventory that remains unsold even after the official sales process through the subscription website has ended and is held by the company. In other words, these are "unsold" units that were offered through normal sales channels such as special supply, first priority, second priority, or non-priority supply but ultimately did not sell.
The reason for labeling unsold units as company-owned units in announcements is simple: to cleanse the negative image associated with the term "unsold." These rebranded units are usually sold on a "first-come, first-served" basis. Since qualifications such as homeownership, subscription savings account ownership, or point scores are irrelevant, buyers are selected solely based on the order of application.
Go Joon-seok, CEO of J.Edu Investment Advisory, said, "Sales of company-owned units are essentially unsold, problematic inventory that could not be sold through normal methods," and warned, "One should not be easily tempted to purchase due to some benefits and advertisements." He advised, "It is important to check basic information in advance, such as surrounding market prices, rental prices, and move-in volumes."
The increase in company-owned unit and first-come, first-served sales in the market reflects the poor market conditions. According to the Ministry of Land, Infrastructure and Transport, as of the end of last month, the number of unsold houses nationwide was 41,604 units, an increase of 27.1% (8,882 units) compared to the previous month. This sharp rise in unsold units is the first in 6 years and 10 months since November 2015 (when there was a 54.3% increase compared to the previous month).
CEO Go said, "If the market situation worsens further, the current advertisements for company-owned units and first-come, first-served sales could shift to 'resale advertisements.'" Resale refers to offering units again at a lower price than the original sales price. Such phenomena have occurred in the late 2000s in places like Yongin City, where units were resold at prices about 20% lower than the original sales price amid a real estate market collapse.
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