Major Construction Firms Stretch Out for Q3 Pre-Sales... Will Demand Concentration in the Seoul Metropolitan Area Intensify?

Samsung C&T, Hyundai Construction, DL E&C Q3 Pre-Sales
July Nationwide Average Subscription Competition Rate Doubles Compared to Previous Month
Capital Region-Provincial Polarization Persists

Large construction companies such as Samsung C&T, Hyundai Engineering & Construction, and DL E&C are set to launch large-scale apartment complexes with over 1,000 units each in the second half of the year. With prices continuously rising and concerns over supply shortages, it is expected that many actual homebuyers will participate in the subscription.

According to industry sources on the 9th, in the third quarter of this year, major construction companies including Samsung C&T, Hyundai Engineering & Construction, and DL E&C plan to supply a total of 8,489 units across nine sites. Among these, 3,640 units will be available for general sale. The volume supplied by these three major companies has increased by about 1,500 units compared to the third quarter of last year, but general sales are expected to decrease by around 750 units. Although the sales market has shown signs of gradual recovery after the first half of the year, supply is still insufficient compared to last year. In fact, the nationwide average subscription competition rate more than doubled from 7.1 to 1 in June to 18 to 1 last month.

In this atmosphere, attention is focused on the metropolitan area as large-scale apartment complexes with verified brands are entering the subscription market. First, Samsung C&T’s ‘Raemian La Grande,’ redeveloped in Imun 1 District, Dongdaemun-gu, Seoul, is a large complex with a total of 3,069 units, of which 920 units will be available for general sale. This is the largest supply in Seoul since the ‘Olympic Park Foret On’ in Dunchon-dong, Gangdong-gu. The average sale price is 32.85 million KRW per 3.3㎡.

Hyundai Engineering & Construction plans to supply ‘Hillstate The Wave City (1,796 units)’ in Siheung, Gyeonggi Province, and ‘Hillstate Sinyong The River (1,647 units)’ in Sinyong-dong, Buk-gu, Gwangju.

DL E&C also plans to supply ‘e-Pyeonhansesang Gangdong Prestige One,’ redeveloped in Cheonho 3 District, Seoul. Of the total 535 units, 263 units will be available for general sale. Since Gangdong-gu, Seoul, where the complex is located, is a non-regulated area with low subscription entry barriers, it is expected to attract high interest not only from actual buyers but also from investors.

However, while the real estate market in the metropolitan area is recovering, the local real estate market remains sluggish, and the polarization of the sales market is expected to deepen in the second half of the year. In particular, as major brands continue to enter the sales market, the demand concentration toward the metropolitan area is expected to intensify.

According to Real Estate R114, last month, 9,872 general sale units were supplied nationwide, and 92,329 first-priority subscription accounts were submitted, showing an average competition rate of 9.4 to 1. However, there was a significant difference between the metropolitan area and local regions. Among nine complexes supplied in the metropolitan area, only one complex had fewer first-priority applicants than general units, resulting in undersubscription. In contrast, in other regions, six out of thirteen complexes had first-priority competition rates below 1 to 1. Compared to the average first-priority competition rate exceeding 100 to 1 for five complexes supplied in Seoul last month, polarization is intensifying.

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