The Brand Remains Strong in the First Half of This Year's Housing Market... Spotlight on Bongdam Ja-i Rajenne

- Average Competition Rate for Top Large Company Brands 18.45 to 1... Non-Large Companies Only 7.8 to 1
- 60% of All First-Choice Accounts Concentrated in Large Companies... 9 of Top 10 Account Holders Are Brands

In the sales market, subscription savings accounts are flocking to brand-name apartments from major construction companies. As preferences for a smart single home increase due to the trend of housing price adjustments, there is a noticeable concentration of demand toward large construction company brand complexes that can expect brand premiums.

According to data from the Korea Real Estate Board's Subscription Home, the first-priority subscription competition rate for complexes sold nationwide in the first half of this year (January to June) was recorded at an average of 11.94 to 1, with 773,169 applicants applying for 64,760 units (excluding special supply). Among these, the first-priority competition rate for brand apartments supplied by major construction companies was 18.45 to 1 (25,182 units offered, 464,523 applicants), more than twice as high as the subscription competition rate for apartments from non-major construction companies (7.8 to 1).

Although the number of units offered by major construction company brand complexes, excluding special supply, was about 25,182 units?approximately 36% less than non-brand apartments (39,578 units)?the number of subscription accounts received was about 50% higher at 464,523, accounting for 60% of the total subscription accounts in the first half of the year.

Looking at individual complexes, 9 out of the top 10 complexes with the highest number of first-priority subscription accounts were brand apartments from major construction companies. For example, in January, ‘Raemian Forestige’ in Oncheon-dong, Dongnae-gu, Busan, received 64,590 first-priority subscription accounts for 1,101 units (excluding special supply), and in the same month, ‘Pohang Xi Atherton’ in Hakjam-dong, Pohang, attracted over 28,000 subscription accounts for 960 units (excluding special supply).

Brand apartments from major companies also maintain significant premiums after move-in. According to actual transaction price data from the Ministry of Land, Infrastructure and Transport, a 98㎡ unit in ‘Misa Riverside Xi’ in Hanam Misa Riverside City (moved in August 2017) was traded for 1.39 billion KRW in May, up 390 million KRW (39%) from 1 billion KRW two years ago. In contrast, a 102㎡ unit in the adjacent complex ‘Misa Riverside Suite Cantavil’ (moved in May 2018) was traded for 1.33 billion KRW in the same month, rising only 205 million KRW (18%) during that period.

An industry insider explained, “Due to strengthened government regulations and increased uncertainty, the demand for a smart single home is growing, and the criterion for a smart apartment is increasingly based on brand, highlighting the importance of brand in complexes. Since brand complexes also form premiums after move-in, preference for brand apartments in the sales market is expected to rise further.”

In July, brand apartments from major construction companies are also scheduled for sale. GS Construction will sell ‘Bongdam Xi Lajenne’ in A-1 block of Donghwa District, Bongdam-eup, Hwaseong-si, Gyeonggi-do. This complex consists of 7 buildings from 2 basement floors to 25 floors above ground, with a total of 862 units ranging from 59 to 112㎡. The number of units by exclusive area is △59㎡A 49 units △59㎡B 48 units △84㎡A 431 units △84㎡B 83 units △84㎡C 72 units △84㎡D 65 units △101㎡A 88 units △101㎡B 22 units △112㎡ 4 units (penthouse).

Bongdam Xi Lajenne is expected to benefit from the Xi brand premium. For example, ‘Bongdam Xi Rafine,’ sold in May last year in A-3 block of Donghwa District, Bongdam-eup, recorded a competition rate of 22.09 to 1 with 8,592 subscription accounts in the first-priority local area, marking the highest competition rate in Bongdam-eup. Also, ‘Bongdam Xi Pride City,’ launched in June last year in 1 block of Nari District, Bongdam-eup, was a large complex with 1,701 units but achieved an average first-priority competition rate of 10.85 to 1 and was sold out in a short period. Only four complexes in Bongdam-eup, including two Xi apartments, have recorded double-digit first-priority competition rates.

Bongdam Xi Lajenne also boasts excellent living infrastructure. Within walking distance are planned elementary school sites and Wau Middle School, with Bongdam 1 High School (planned) also in the works. Additionally, there is a cluster of academies within about 1 km radius, providing excellent educational conditions. E-Mart (Bongdam branch) is accessible on foot, and within about 1 km radius of the site are CGV, Hanaro Mart (Bongdam branch), and the central commercial district of Bongdam 1 District, enabling convenient living.

The complex is mainly oriented southward (southeast, southwest) to enhance sunlight exposure, and some unit types feature wide expansion areas with double-sided, triple-sided, or quadruple-sided openings. Additionally, a low building-to-land ratio of about 14% allows residents to enjoy a pleasant living environment within the complex.

Bongdam Xi Lajenne plans to open a model house and is currently operating a promotional center.

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