Samjong KPMG "New Housing Site Restrictions and Land Resource Limits...Rise of Developer Roles"

[Asia Economy Reporter Ji-hwan Park] As new domestic land sites become limited and land resources reach their limits, an analysis has emerged that the role of 'developers' specializing in real estate development and planning is growing.

Samjong KPMG stated in its report published on the 9th, "The Leap of Developers: Focusing on Overseas Case Studies," that as the sophistication of land utilization is required, a trend is emerging domestically where professional developers with capital and know-how are appearing.

Developers are experts who comprehensively operate and manage real estate development to maximize the potential of land or real estate. Recently, as the boundaries of industries related to real estate development have blurred, various sectors with diverse backgrounds such as investors, project implementers, and construction companies have entered the developer field, promoting changes in business models.

In Korea, since the late 2000s, major developers with owned assets, REITs, and capital strength have begun to take shape. They can be classified into four categories based on their backgrounds: developer-affiliated, construction-affiliated, conglomerate-affiliated, and financial-affiliated. Recently, developers crossing boundaries have appeared, expanding from development and sales to the financial sector.

In the United States, developers have diversified development fields such as housing, commercial buildings, hotels, and resorts through specialization. In Japan, after the bubble burst, to ensure stability, they expanded their portfolios beyond real estate development to include leasing and management businesses.

Geun-gu Im, Executive Director and Head of Construction & Infrastructure Industry at Samjong KPMG, said, "Developers have high relevance to existing businesses and can increase sustainability through high value-added creation and long-term rental income, so their future development potential is high." He added, "Developers are aggressively acquiring land sold by companies struggling due to the impact of COVID-19 to secure liquidity, and new and diverse real estate development models will be actively attempted in the future."

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