Large Brand Subscription Concentration Phenomenon... 10% of Supply but 60% of Applicants

▲ Perspective view of 'Hillstate Daegu Station Opera' in Buk-gu, Daegu (Provided by Hyundai Engineering & Construction)

[Asia Economy Reporter Lee Chun-hee] This year, preference for major construction company brands remains high.

According to Real Estate 114 on the 9th, among 49 nationwide pre-sale complexes in the first quarter (January to March) of this year, only 20.4% (10 complexes) were from the top 10 construction companies based on last year's construction capability evaluation rankings. However, out of a total of 607,943 first-priority applicants, more than half, 364,268 people (59.9%), applied for complexes from the top 10 construction companies.

Brand apartments constructed by large construction companies have the advantage of higher project stability due to their financial capabilities, and they excel in layouts and community facilities. When the brand has high recognition, the market price after move-in tends to be higher than nearby non-branded complexes.

According to KB Kookmin Bank price data, the market price of the 84㎡ (exclusive area) unit at 'Hillstate Baegun' in Nam-gu, Gwangju, formed at around 450 million KRW, was about 100 million KRW higher than a similar-sized unit in a nearby complex that moved in around the same time, which was priced at 337.5 million KRW.

As the brand acts as an important factor in determining apartment value, construction companies are strengthening competitiveness through various methods such as brand renewal. Hyundai Construction has renewed its existing 'Hillstate' brand and also launched the premium brand 'The H'. Daelim Industrial, Daewoo Construction, and POSCO Construction recently renewed the brand identities (BI) of 'Acro', 'Prugio', and 'The Sharp', respectively, and Lotte Construction also introduced a new high-end brand, 'Leel'.

An industry insider said, "As apartment brand value affects housing prices, the preference for brands among consumers will continue to spread. Those planning to purchase a home this year should pay close attention to new brand apartments."

Meanwhile, large brand apartment pre-sales are scheduled across the country. Hyundai Construction will launch pre-sales for 'Hillstate Daegu Station Opera' in Buk-gu, Daegu, this month. This complex consists of eight apartment buildings ranging from four basement floors to 48 above-ground floors, with 937 units sized 59 to 101㎡, and 270 officetel units sized 63 to 67㎡, totaling 1,207 units.

Daewoo Construction is currently pre-selling 'Ansan Prugio Breepark' through the reconstruction project of Wongok Yeonrip 1 Complex in Danwon-gu, Ansan, Gyeonggi Province. The complex consists of 10 buildings ranging from three basement floors to a maximum of 38 above-ground floors, with a total of 1,714 units sized 49 to 84㎡, of which 588 units are supplied for general sale.

POSCO Construction will pre-sell 'The Sharp Gwanggyosan First Park' in Jangan-gu, Suwon, Gyeonggi Province, this month. A total of 475 units sized 36 to 84㎡ will be available for general sale. Lotte Construction will also pre-sell 'Uijeongbu Lotte Castle Gold Foret' through the redevelopment project of Ganeung 1 District in Uijeongbu, Gyeonggi Province, this month. A total of 326 units sized 36 to 84㎡ will be supplied for general sale.

This content was produced with the assistance of AI translation services.