Hanshin Engineering & Construction 'Geoje Hanshin The Hue', Expectations for the 'Learning Effect' in the Cyclical Real Estate Market

- Past real estate cycles show highest returns in small investments during downturns after rebounds in rising markets
- Notable as small investment options with no additional costs until move-in and unlimited resale possible from around 10 million won

Despite the ongoing mixed trends in the real estate market, newly launched pre-sale products that allow small-scale preemptive investments are gaining attention. Small-scale investment options have historically shown the highest rate of increase during the upswing following downturns such as the financial crisis, and investment demand, having experienced the learning effect that real estate markets exhibit clear cyclical patterns, is actively engaging in preemptive investments.

According to the Korea Real Estate Board, during the real estate market downturn caused by the European financial crisis and other factors, from early 2012 to the first quarter of 2013, the nationwide apartment sales price index fell from 81.3 to 78.8. However, it began to rebound afterward and steadily rose until the end of 2015, showing an increase approximately three times the previous decline. Additionally, during the downturn from October 2018 to August 2019, the sales price index slightly decreased from 87.9 to 85.8 but then surged by 20.4% to 106.2 earlier this year.

A real estate expert stated, “In past housing price downturns, it was difficult to find demand for purchasing homes, but recently, as interest in real estate investment has increased, preemptive investment competition is occurring mainly among savvy investors such as ‘cherry pickers’ who focus on prime investments.” He added, “This is based on the learning effect of making significant profits by taking advantage of downturns, and especially complexes that allow small-scale investments with the highest returns are being spotlighted as blue-chip assets.”

In fact, even in the current market downturn, investors are busy making preemptive investments. People aiming to secure promising and well-located complexes in advance in preparation for a future market rebound are noticeable. Particularly, considering the current market environment with aggressive interest rate hikes, there is high interest in complexes that offer various financial benefits enabling small-scale investments.

‘Geoje Hanshin The Hue,’ the first ‘Hanshin The Hue’ brand complex introduced by Hanshin Engineering & Construction in Geoje City, is a representative example, recently receiving continuous inquiries from various investors, including those from outside the region.

A sales official explained, “Various benefits are provided, such as a first payment of 10 million KRW, a fixed 5% contract payment (with the remaining 5% as an interest-free loan), full interest-free intermediate payments, and free air conditioners (2 units) for some units on a first-come, first-served basis, so there is no additional burden until move-in with just a 10 million KRW contract payment.” He added, “Moreover, the complex allows unlimited resale, and external investors who expect the market to improve by the time of move-in are showing great interest as a small-scale investment option.”

Located in the Ajoo-dong area of Geoje City, Gyeongnam Province, ‘Geoje Hanshin The Hue’ consists of six buildings ranging from two basement floors to 25 above-ground floors, with a total of 547 apartments of 84 and 99 square meters in exclusive area. The units are mainly medium-to-large types preferred by buyers, including △84㎡A 157 units △84㎡B 122 units △84㎡C 123 units △99㎡A 72 units △99㎡B 73 units.

The complex boasts a one-stop location with excellent educational and living conditions. Naegok Elementary School is located right in front of the complex, ensuring safe commuting for students. It is also close to Daewoo Elementary School, the only private elementary school in Geoje City, and the prestigious Geoje Middle and High Schools, providing an excellent educational environment.

Furthermore, through a contract with the leading domestic education brand Jongno M School, premium educational services will be offered within the complex with a 50% tuition discount for two years, positioning Geoje Hanshin The Hue as a leading education-specialized complex in the region. Additionally, within a 1.5 km radius, there are numerous marts, banks, hospitals, and academies concentrated in a commercial area centered on neighborhood businesses, enhancing living convenience.

Proximity to workplaces is also excellent. Okpo National Industrial Complex, where Daewoo Shipbuilding & Marine Engineering’s Okpo Shipyard is located (with over 30,000 employees), is about a 5-minute drive away. Additionally, Jukdo National Industrial Complex, home to Samsung Heavy Industries Geoje Shipyard (also with over 30,000 employees), is reachable within approximately 10 minutes by car.

Moreover, the area is considered a major beneficiary of Hanwha Group’s acquisition of Daewoo Shipbuilding & Marine Engineering. After drifting ownerless for over 20 years, Daewoo Shipbuilding & Marine Engineering is expected to gain momentum with a strong parent company ranked 7th in the business world. As the core hinterland of Daewoo Shipbuilding & Marine Engineering’s Okpo Shipyard and the location of Geoje Hanshin The Hue in Ajoo-dong, the area is attracting significant industry attention due to its high future value expectations.

The well-connected transportation network is also noteworthy. Through the nearby Songjeong IC, wide-area travel to Busan, Changwon, Gimhae, Tongyeong, and other cities is convenient, and within Geoje City, the Ajoo Tunnel, Geoje-daero, and National Route 14 enable quick access to local living areas. Additionally, the newly established Ajoo-dong bypass road, which allows quick exit before entering the Ajoo Tunnel on National Route 14, is expected to further improve transportation conditions.

‘Geoje Hanshin The Hue’ also offers excellent product quality befitting the symbolic status as Geoje City’s first Hanshin The Hue brand complex. It features three-sided balconies (in some unit types) with excellent usable space and mainly slab-type layouts preferred by buyers, arranged predominantly facing south to maximize lighting and ventilation efficiency.

Hanshin Engineering & Construction’s community ‘Club The Hue’ and its differentiated landscaping design are also highly anticipated. Numerous community facilities will be established, including exercise facilities such as a GX room and fitness club, educational and cultural community facilities like reading clubs, book clubs, and moms’ clubs, as well as a community plaza. The landscaping design within the complex will enhance comfort with various trees planted in family gardens, herb gardens, and farm gardens.

At the model house of Geoje Hanshin The Hue, a roulette event is currently underway, offering prizes to visitors.