Highly Preferred Large Construction Company Apartments, 55,000 Units Offered in Q2

Published 15 Apr.2020 12:34(KST)

▲ Perspective view of 'Geomam Station Royal Park City Prugio' in Baekseok-dong, Seo-gu, Incheon. (Provided by Daewoo E&C)

[Asia Economy Reporter Lee Chun-hee] In the second quarter of this year, major construction companies will launch the sale of approximately 55,000 apartment units.

According to real estate market analysis firm Real Estate Info on the 15th, the general sale volume of the top 10 construction companies by construction capability evaluation for the second quarter (April to June) of this year is 55,734 units. This figure excludes officetels and rental housing, and also excludes units allocated to association members from the total 76,051 units.

This accounts for 51.6% of the total planned supply of 108,046 units in the second quarter. It is an increase of 49,342 units compared to the 6,392 units sold in the first quarter. Compared to 17,224 units in the second quarter of last year, it is an increase of 38,510 units.

Monthly, 20,689 units will be supplied this month, followed by 19,205 units in May and 15,840 units in June. By region, the Seoul metropolitan area, including Seoul, accounts for about 55.1% with 30,684 units. Metropolitan cities in the provinces plan to supply 16,950 units, and other metropolitan local governments will supply 8,100 units.

Kwon Il, head of the research team at Real Estate Info, analyzed, "The reason for the large supply volume in the second quarter is that the apartment sales planned for the first quarter were largely postponed to the second quarter due to the transfer of the subscription system and the spread of the novel coronavirus (COVID-19)." He added, "Many construction companies are trying to maintain the heated market atmosphere despite the unsettled economic situation, and redevelopment and reconstruction projects in areas subject to the private land price ceiling system, which was deferred for three months, are also being expedited. However, this could change depending on the prolongation of COVID-19."

▲ A bird's-eye view of 'Hoban Summit Mokdong' in Sinjeong-dong, Yangcheon-gu, Seoul. (Provided by Hoban Construction)

By company, Daewoo Construction holds the largest share, supplying 12,690 units. The 'Geomam Station Royal Park City Prugio' in Baekseok-dong, Seo-gu, Incheon, is the largest complex among second-quarter projects, with 4,805 units ranging from 59 to 241㎡ (exclusive area). The 'Gwangmyeong Prugio Centver' in Gwangmyeong New Town 15 District, Gwangmyeong City, Gyeonggi Province, which has faced continuous delays, will also be supplied with 464 units in the second quarter.

GS Construction will supply 9,095 units. In Seoul, 374 units will be generally sold in Heukseok New Town 3 District, Dongjak-gu. In Gyeonggi Province, 'DMC Riverfore Xi' (318 units) and 'DMC Riverpark Xi' (702 units) will be supplied together in Deogeun District, Goyang City. In Daegu, 'Daegu Yongsan Xi' with 429 units will be sold.

Lotte Construction plans to supply 7,796 units, with a concentration in Seoul. Through the Sinbanpo 13th reconstruction in Jamwon-dong, Seocho-gu, 98 units will be generally sold, and 724 units will be generally sold through the redevelopment of Sangye 6 District, Nowon-gu.

Hyundai Construction plans to supply 6,683 units, with 2,586 units across five sites in Daegu alone. 'Hillstate Dowon Central' with 894 units and 'Hillstate Daegu Station Opera' with 944 units are planned for sale. In Seoul, together with HDC Hyundai Development Company, 1,206 units will be generally sold through the reconstruction of Gaepo 1 Complex, Gangnam-gu.

POSCO Construction plans to supply 5,614 units in the second quarter. This includes 475 units at 'The Sharp Gwanggyosan First Park' in Jang-an 111-4 District, Suwon City, Gyeonggi Province, and 342 units at F19-1 Block in Songdo International Business District, Yeonsu-gu, Incheon. Hoban Construction will also supply 3,468 units. This includes 534 units at 'Hoban Summit Sky Central' in A47 Block, Yeongjong International City, Incheon, 238 units at 'Hoban Summit Mokdong' in Yangcheon-gu, Seoul, and 578 units at 'Hoban Summit The First Siheung' in Siheung MTV Joint 2 Block, Gyeonggi Province.