[Top 10 Construction Companies Report]② This Year's Pre-Sales More Aggressive Than Last Year... Supply Released in Gangnam 3 Districts

Top 10 Construction Companies Set Higher Sales Targets Than Last Year

Waiting for Subscription to Enter Gangnam 3 Districts Subject to Sale Price Ceiling System

On the 12th, the One Bailey construction site in Banpo-dong, Seocho-gu, Seoul, where construction had been halted due to a significant rise in labor costs as well as prices of rebar and concrete materials, is resuming work just one day after the shutdown. Photo by Jinhyung Kang aymsdream@

Amid concerns over a real estate market downturn, the top 10 construction companies have set aggressive housing supply targets for this year. They plan to increase the number of units for sale by about 36% compared to last year and will also launch sales in the three Gangnam districts of Seoul. With the application of the price ceiling system and the expansion of the lottery system in Gangnam area complexes, interest from actual homebuyers is expected to rise. Demand for high-value subscription savings accounts, which had been reserved for entry into the Gangnam area, is anticipated to concentrate.

On the 16th, Asia Economy surveyed the housing supply performance (cooperative member supply and general sales) of the top 10 construction companies and found that they will supply 130,031 units this year. This is a significant increase from 95,395 units last year. The top 10 construction companies are the top 10 firms in the 2023 construction capacity evaluation set by the Ministry of Land, Infrastructure and Transport. They include Samsung C&T, Hyundai Engineering & Construction, Daewoo Engineering & Construction, Hyundai Engineering, GS Engineering & Construction, DL E&C, POSCO E&C, Lotte Engineering & Construction, SK Ecoplant, and Hoban Construction.

Lotte Engineering & Construction, Hyundai Engineering & Construction, and GS Engineering & Construction each plan to supply around 20,000 housing units this year. Among them, Lotte Engineering & Construction has the highest supply target among the top 10 construction companies with 23,428 units. Lotte plans to offer 149 units for general sale in the first half of the year at Cheongdam Le El, a reconstruction of the Cheongdam Samik Apartments. About 200 units for general sale at Songpa-gu Jamsil Le El are also pending.

GS Engineering & Construction aims to supply a total of 19,000 units, starting this month with 162 general sale units at Sinbanpo Maple Xi, built through the Sinbanpo 4 District redevelopment project. Hyundai Engineering & Construction also announced plans to supply 20,541 units. In the three Gangnam districts, the D.H. Daechi Edelweiss (76 general units) is scheduled for March, and D.H. Bangbae (1,251 general units) for November. Other companies with supply targets exceeding 10,000 units include Daewoo Engineering & Construction (16,000 units), POSCO E&C (15,801 units), and Hyundai Engineering (11,426 units). Hyundai Engineering plans to sell 132 general units at Sinbanpo 22nd Apartment in September, and POSCO E&C plans to sell 251 general units at Sinbanpo 21st Apartment in December.

Samsung C&T’s supply target for this year is 4,724 units, which is lower than other construction companies, but it is notable that the focus is on the three Gangnam districts. Pending sales include Banpo Raemian One Pentas (March, 292 general units), Bangbae Raemian One Perla (May, 470 general units), Dogok Raemian Leventus (May, 133 general units), and Jamsil Raemian I-Park (June, 592 general units).

Baek Saerom, a researcher at Real Estate R114, said, "Last year’s sales were strongly influenced by price sensitivity due to the economic downturn and prolonged high interest rates, showing a strong trend of ‘sorting the wheat from the chaff’ depending on the price level and location." She added, "This year, the selective subscription trend, where subscription savings accounts concentrate on ‘profitable places,’ is expected to continue."

Meanwhile, among the top 10 construction companies, GS Engineering & Construction supplied the largest volume last year, with 22,098 units sold. The supply was mainly concentrated in Seoul and Gyeonggi Province. Lotte Engineering & Construction (16,503 units) and Daewoo Engineering & Construction (15,540 units) also supplied more than 10,000 units.