Major Construction Companies Expand Business Areas... 'Brand Power' Battle in Income-Generating Real Estate Too

[Asia Economy Reporter Yuri Kim] The influence of 'brand power' is growing even in the income-generating real estate market. This is due to the expansion of business areas by major construction companies, leading to active supply of income-generating real estate such as knowledge industry centers, residential lodging facilities, officetels, and commercial spaces.

According to the real estate industry on the 12th, this phenomenon is particularly prominent in non-residential products within the income-generating real estate sales market. Especially in the knowledge industry center market, which has gained attention due to tax benefits, interest in branded complexes is increasing.

Hyundai Engineering's branded knowledge industry center 'Hyundai Terra Tower' and SK Construction's 'SK V1' have recorded sell-outs in Munjeong-dong, Gasan-dong, and Seongsu-dong in Songpa-gu, Seoul. The 'Munjeong Station Terra Tower' supplied in Munjeong-dong is known to have a premium of several hundred million won compared to the sale price, which is rare for knowledge industry centers.

The same applies to commercial facilities. In May, Hyundai Engineering's commercial facilities within the 'Hillstate Cheongnyangni The First' complex supplied in Jeonnong-dong, Dongdaemun-gu, Seoul, reportedly sold out immediately upon opening. The commercial space 'Hills Avenue Cheongnyangni Station' within the 'Hillstate Cheongnyangni Station' complex, supplied through the development of Miju Shopping Center Building B by Hyundai Construction, also completed contracts in a short period.

Residential-type products such as residential lodging facilities, officetels, and urban lifestyle housing are also attracting attention with branded products. In the case of officetels, all branded construction company complexes sold in Seoul this year completed subscriptions without undersubscription. In the metropolitan area, 'Hillstate Songdo The Sky' in Songdo, Incheon, and 'Hillstate Uijeongbu Station' in Uijeongbu sold out quickly, and in the provinces, the residential officetel 'Hillstate Doan' supplied in Doan New Town, Daejeon, completed all contracts within four days, gaining popularity.

Interest in branded products is also high in the residential lodging facility and urban lifestyle housing markets. Last month, Daewoo Construction's 'Pyeongchon Prugio Central Park' launched in Pyeongchon New Town, Anyang, showed an unusually high competition rate of up to 267 to 1 and an average of 121 to 1 for residential lodging facilities, completing subscriptions. The urban lifestyle housing 'Sewoon Prugio Hericity' and 'Hillstate Sewoon Central' introduced by Daewoo Construction and Hyundai Engineering in the Sewoon district of Jung-gu, Seoul, completed subscriptions with competition rates of up to 34.9 to 1 and 51.3 to 1, respectively.

An industry official said, "As with apartments, the phenomenon of preferring a single solid property is strengthening in income-generating real estate, increasing preference for branded products that show superiority in marketability, stability, and reliability," adding, "The preference for brands is expected to become more distinct in the income-generating real estate market as well."

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