Despite Real Estate Slump, 'Prime Location Urban Area Sales' Remain Popular

'Ssangyong The Platinum Beomeo' perspective rendering (Photo by Ssangyong Construction)

[Asia Economy Reporter Moon Jiwon] Amid the economic downturn caused by the novel coronavirus disease (COVID-19) pandemic, which has increased uncertainty in the real estate market, buyers' purchasing sentiment is focusing on downtown area pre-sales. Downtown areas are inherently competitive locations because they already concentrate transportation, school districts, commercial, and cultural facilities, even without new developments or other positive factors.

According to industry sources on the 21st, the top three places with the highest subscription competition rates this year are all major downtown area units within their regions. Among 55 complexes nationwide that held subscriptions until the 10th, the highest average subscription competition rates were ▲Ssangyong The Platinum Haeundae (226.45 to 1) ▲Gwacheon Jade Xi (193.64 to 1) ▲Magok District 9 Complex (146.82 to 1).

The overheated subscription market in downtown areas contrasts with the general sales market, which has turned downward recently due to the economic recession caused by COVID-19. An industry official said, "Rather than investment-type pre-sales, verified new apartments in downtown areas that are good for immediate living are considered steady sellers in the real estate market," adding, "Major downtown area pre-sales in the metropolitan area and provinces are expected to continue attracting attention in the second quarter of this year."

On the 14th, Ssangyong Construction's 'Ssangyong The Platinum Beomeo,' which received first-priority subscription applications, is also an apartment located in Suseong-gu, the downtown area of Daegu. It achieved an average competition rate of 22.6 to 1. The officetel subscription, which closed on the 19th, received 4,635 applications for 85 units, recording an average competition rate of 54.5 to 1 and a highest competition rate of 57.3 to 1.

A Ssangyong Construction official explained, "Focusing on excellent location, reasonable pricing, and high product quality seems to have led to a smooth first-priority subscription closing despite difficult times."

This complex is located in the immediate vicinity of Beomeo Station on Daegu Subway Line 2 and has excellent metropolitan transportation with KTX Dongdaegu Station within a 2 km radius. As it is a region with high school district preference, Dongcheon Elementary School is within walking distance, and the main academy district of Suseong-gu is also conveniently accessible.

The supply scale consists of three buildings ranging from five basement floors to a maximum of 39 floors above ground, comprising 207 apartment units and 85 officetel units, totaling 292 residential units in a mixed-use complex. Targeting family demand, all units have an exclusive area of 84㎡. The officetel winners will sign contracts from the 22nd to the 24th, while apartment winners will be announced on the 24th, with contracts scheduled from the 6th to the 12th of next month.

Meanwhile, Lotte Construction plans to pre-sell 'Jayang 1 District Lotte Castle (tentative name)' through the housing reconstruction project of Jayang 1 District in Gwangjin-gu, Seoul. Jayang-dong is a downtown area boasting abundant demand from office workers, university students, and self-employed individuals, with Konkuk University Station, a transfer station for Subway Lines 2 and 7, within a 1 km radius. The complex will consist of six buildings with a maximum of 35 floors above ground, totaling 878 units with exclusive areas ranging from 59 to 101㎡, of which 482 units will be for general sale.

Posco Construction will pre-sell 'The Sharp Songdo Centennial' next month in Songdo International Business District, the downtown area of Incheon. Located at F19-1 block of Songdo International Business District, Songdo-dong, Yeonsu-gu, it will consist of four buildings ranging from two basement floors to a maximum of 39 floors above ground, totaling 342 units. Central Park Station and Incheon National University Station on Subway Line 1 are within walking distance. Nearby schools include Yesong Elementary, Yesong Middle, and Incheon Science and Arts Gifted School.

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