Clear Preference for Top 10 Brand Apartments... 'Gwangmyeong Xi The Sharp Forena' Sale in Focus

by Choi Bongseok

Published 12 Apr.2023 11:10(KST)

- Real Estate Market Adjustment Period, Apartment Brand Value Increases... Polarization in Subscription Competition Rates, Contract Rates, and Market Prices
- This Year's Top 10 Brand Apartments Have an Average Subscription Competition Rate of 7.96 to 1, While Other Apartments Remain at 1.52 to 1... GS Construction Consortium Plans April Sale Announcement

Amid the real estate market adjustment period, a clear preference for the top 10 brand apartments is emerging.

According to the results of the ‘2022 Best Apartment Brand’ survey conducted jointly by Real Estate R114 and Korea Research, GS Construction’s ‘Xi’ secured first place consecutively following 2021. It was followed by Daewoo Construction’s ‘Prugio’, Samsung C&T’s ‘Raemian’, Hyundai Construction’s ‘Hillstate’, Lotte Construction’s ‘Lotte Castle’, POSCO Construction’s ‘The Sharp’, DL E&C’s ‘ePyeonhansesang’, HDC Hyundai Development Company’s ‘IPARK’, Doosan Construction’s ‘We’ve’, and Hanwha’s ‘Forena’.

Based on these results and an analysis of data from the Korea Real Estate Board, among the total 404 complexes offered nationwide last year, the top 10 brand apartments accounted for 133 complexes (including consortiums) and 71,038 households (excluding special supply). These attracted 626,029 first-priority subscription accounts, recording an average competition rate of 8.81 to 1. In contrast, other apartments numbered 271 complexes with 85,009 households, receiving 496,400 applications, resulting in an average competition rate of only 5.63 to 1.

This trend has become even more pronounced this year. In fact, among the 35 apartments offered nationwide from January to March this year, 14 complexes with 8,374 households belonged to the top 10 brands, attracting 66,661 first-priority subscription applicants and showing an average competition rate of 7.96 to 1. Meanwhile, the other 21 complexes with 7,720 households received only 11,780 applications, resulting in a competition rate of just 1.52 to 1.

Furthermore, despite the ongoing real estate crisis this year, the top 10 brand apartments continue to achieve ‘complete sales’. In Seoul, ‘Riversen SK VIEW Lotte Castle’, ‘Gangdong Heritage Xi’, and ‘Jangwi Xi Radiant’, as well as ‘Cheolsan Xi The Heritage’ in Gyeonggi Province, have all completed 100% contracts contrary to initial concerns. In the provinces, all 1,965 households of ‘Changwon Lotte Castle Forest’ have found owners.

The reason why the top 10 brand apartments maintain their popularity is that they outperform other apartments in terms of stability, reliability, product quality, and after-sales management. Additionally, their market prices are often higher than surrounding apartments, and during boom periods, greater capital gains can be expected.

For example, according to KB Real Estate price data, the average sale price of an 84㎡ unit in ‘Seoul Forest Prugio (occupied in 2007)’ in Seongdong-gu, Seoul, was confirmed to be 1.59 billion KRW as of this month. In contrast, an 84㎡ unit in ‘Apartment B (occupied in 2007)’ located in the same area was priced at 1.33 billion KRW, showing a difference of approximately 260 million KRW.

Similarly, in Hwaseong-si, Gyeonggi Province, the sale price of an 84㎡ unit in ‘Hillstate Dongtan (occupied in 2019)’ was 750 million KRW, which was 140 million KRW higher than the same-sized unit in ‘Apartment D (occupied in 2019)’ located opposite.

Among these, this month, the GS Construction consortium (GS Construction Co., Ltd., POSCO E&C Co., Ltd., Hanwha Construction Division) is scheduled to launch ‘Gwangmyeong Xi The Sharp Forena’, attracting significant attention. Since the brands ‘Xi’, ‘The Sharp’, and ‘Forena’ of the three construction companies all belong to the top 10 apartment brands, it is evaluated that buyers can enjoy high product quality guaranteed by proven construction capabilities, as well as anticipate future brand premiums.

Gwangmyeong Xi The Sharp Forena, located in the Gwangmyeong 1R Housing Redevelopment District in Gwangmyeong-si, Gyeonggi Province, consists of 28 buildings ranging from three basement floors to 38 above-ground floors, totaling 3,585 households, with 809 households of 39 to 112㎡ available for general sale.

Among them, the small-sized types of 39㎡ and 49㎡, which have a large supply volume, are designed as two-room types with two bedrooms, a living room, and a separate kitchen, breaking away from the cramped past floor plans such as studio and 1.5-room types, maximizing comfort and space utilization. In particular, the 49㎡ type features windows in the kitchen and living room facing each other for cross ventilation, and ample storage spaces such as a dressing room and a utility room will be provided.

Additionally, the complex will feature themed gardens blending green and rest areas, children’s playgrounds scattered throughout, and various community facilities suitable for a large-scale complex, including daycare centers, senior clubs, fitness centers, GX rooms, indoor golf practice ranges, saunas, and libraries.

The excellent location also draws attention. Gwangmyeong Xi The Sharp Forena is effectively within Seoul’s living area, bordering Guro-gu and Geumcheon-gu in Seoul. It offers easy access to major hubs and central business districts in Seoul, Gyeonggi, and Incheon through a wide transportation network including Anyangcheon-ro, Seobu Expressway, Seohaean Expressway, Gangnam Circular Urban Expressway, and the 2nd Gyeongin Expressway. Moreover, it is close to subway Line 1’s Gaebong Station and Guil Station, and Line 7’s Gwangmyeongsageori Station, accessible by walking or bus transfers.

Nearby educational facilities include Gwangmyeongbuk Elementary School, Gwangmyeongdong Elementary School, and Gwangmyeongbuk Middle and High Schools, as well as natural and recreational areas such as Mokgamcheon, Anyangcheon, Cheolsan Children’s Park, Hyeonchung Neighborhood Park, and Guro Gaebong Retention Basin Ecological Park.