As the economic recession continues, the polarization gap in the real estate pre-sale market is deepening, intensifying the phenomenon of prospective buyers discerning the "diamond in the rough" among "smart single homes."
In particular, in regional pre-sale markets outside the Seoul metropolitan area, a strong preference for brands is observed, along with a large influx of subscription demand for newly built apartments that are poised to become flagship properties, located in central areas with concentrated infrastructure, and offering superior product quality and scale.
Recently, the subscription market has been led by brand complexes from top-tier construction companies with excellent infrastructure. According to the Korea Real Estate Board’s Subscription Home, “Hillstate Gwanak Centciel,” launched by Hyundai Engineering & Construction in Gwanak-gu, Seoul, in September last year, recorded an average competition rate of 65 to 1 and sold out within about a month after the pre-sale. As a newly built complex with a top-tier brand in Gwanak-gu, an area densely populated with aging housing, many buyers flocked with expectations that it would become a flagship property in the future.
Additionally, “Maple Xi,” supplied by GS Engineering & Construction in Seocho-gu, Seoul, in February this year, attracted 35,828 applicants for 81 units excluding special supply in the first-priority subscription, recording an average competition rate of 442.3 to 1. This complex drew buyers’ attention as a flagship property due to the well-known Xi brand premium in the Banpo area of Seocho-gu and the fact that it is being developed as a large-scale complex with 3,307 units.
This trend is also reflected in the sales market. According to the Ministry of Land, Infrastructure and Transport’s actual transaction prices, in Suwon Gwanggyo New Town, the “Jayeon & Hillstate” apartment near Gwanggyo Jungak Station on the Shinbundang Line, with an exclusive area of 84㎡, was traded at 1.53 billion KRW in September last year, showing an increase of about 250 million KRW compared to the transaction price of 1.28 billion KRW in April last year. This transaction is the highest price recorded in the past year for the Gwanggyo Jungang Station area in Iui-dong, based on the 84㎡ exclusive area.
Furthermore, in March this year, the “Daeyeon Lotte Castle Legend” (3,149 units) in Daeyeon-dong, Nam-gu, Busan, with an exclusive area of 84㎡, was traded at 686 million KRW, about 6% higher than the actual transaction price of 649 million KRW in November last year. This contrasts with the average apartment sale price in Nam-gu, Busan, which remained flat during the same period.
A real estate expert said, “As the real estate market continues to show mixed trends, demand is concentrating on flagship properties that offer both investment safety and livability,” adding, “Through long-term learning effects, complexes with top-tier brands that demonstrate downward price rigidity during downturns and high elasticity in rising markets, combined with prime locations considered the top priority when selecting real estate, are chosen by buyers discerning the ‘smart single home’.”
Meanwhile, the landmark complex “Hillstate Gajang The First,” regarded as the best location in the Doma-Byeondong Redevelopment Promotion District in Seo-gu, Daejeon Metropolitan City, is attracting attention with a planned pre-sale in May.
Located in Gajang-dong, Seo-gu, Daejeon Metropolitan City, “Hillstate Gajang The First” will be developed on a scale of 15 buildings, from 2 basement floors to 38 floors above ground, with a total of 1,779 units ranging from 59 to 84㎡ exclusive area. Among these, 1,339 units will be available for general sale.
The Doma-Byeondong Redevelopment Promotion District, where the complex is located, is undergoing a large-scale redevelopment project aiming to create about 25,000 households in Doma-dong and Gajang-dong, Seo-gu, Daejeon Metropolitan City. It is gaining attention as an emerging residential area with high potential for future residential environment development. Geographically, the district is close to Dunsan-dong and Tanbang-dong, which are representative preferred residential areas in Daejeon, and also offers excellent accessibility to Doan New Town, a nearby young new town.
Moreover, within a 1.5 km radius of the complex, there are many schools including Gajang Elementary, Naedong Elementary, Byeondong Elementary, Bongsan Middle, Naedong Middle, and Daejeon Seo Middle, providing an excellent educational environment. Residents can also access the Dunsan-dong academy district, known for its high educational enthusiasm. The commercial areas around Yongmun Station Intersection, Lotte Department Store, and Hanmin Market are nearby, and various public offices such as Daejeon City Hall, Government Daejeon Complex, and Daejeon Police Agency, as well as university hospitals, E-Mart Dunsan branch, and Traders Wolpyeong branch, offer convenient lifestyle facilities. Additionally, the complex is adjacent to Deulmal Children’s Park and a planned multi-community center (approved by central investment review), and Yudeungcheon Stream is within walking distance, making it ideal for walking and leisure activities.
The apartment brand “Hillstate,” applied to “Hillstate Gajang The First,” holds numerous awards including the 2023 Real Estate R114 Korea Research Best Apartment Brand No. 1, the 2023 Korea Standard Association Premium Brand Index No. 1 in the multi-family housing and smart home service categories, and the 2023 Korea Brand Star No. 1 in the multi-family housing category. Notably, in the apartment brand reputation survey announced by the Corporate Reputation Research Institute, “Hillstate” has ranked No. 1 in apartment brand reputation index for 60 consecutive months from April 2019 to March 2024, solidifying its status as an industry-leading brand.
With its high brand value, “Hillstate Gajang The First” also boasts excellent product quality. It secures a wide spacing between buildings (up to 100m) with a building-to-land ratio of about 15%, providing a sense of openness and privacy protection. The internal design features walk-in closets in all units and specialized floor plans including pantries and alpha rooms depending on the type. Additionally, each household is provided with a storage room, offering ample storage space.
The model house for Hillstate Gajang The First will be set up in the Gajang-dong area of Seo-gu, Daejeon Metropolitan City, with move-in scheduled for June 2027.
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