Even as provincial housing markets remain in a wait-and-see mode, demand for apartments built by major construction companies under established brand names continues to hold. As branded complexes increasingly become the benchmark developments in their areas, newly launched pre-sales in regions with limited brand supply are drawing sustained attention.
In major provincial cities, branded apartments are already commanding prices well above local averages. According to Real Estate R114 data, the average transaction price per 3.3 square meters at Yeonji Park Prugio in Naedong, Gimhae, South Gyeongsang Province, stood at 17.63 million won ($11,500) as of May — more than double Gimhae's city-wide average of 7.22 million won. Ministry of Land, Infrastructure and Transport transaction data show that an 84-square-meter unit at the complex changed hands for 680 million won in February, up 160 million won from 520 million won recorded in October last year.
Industry observers attribute the price gap to brand recognition, product quality and construction standards. Analysts note that major construction brands supply far fewer apartments in provincial areas than in Greater Seoul, so newly launched branded complexes tend to generate particularly strong interest when they do come to market.
The same trend is playing out in the pre-sale market. Real Estate R114 data show that Hillstate Pyeonggeo Central, launched in April in Pyeonggeo-dong, Jinju, South Gyeongsang Province, drew 3,753 applicants for 184 units, recording a first-round subscription ratio of 20.4 to 1. Analysts say one contributing factor was that the complex was the first major branded apartment offered within a 3-kilometer radius.
Similar results have been seen in other provincial cities — including Andong and Cheongju — where newly launched branded complexes have posted subscription rates above local averages in areas that had seen little supply from major construction brands.
Against this backdrop, several major provincial cities with limited branded apartment supply are set to see new pre-sales in the coming months.
A consortium of Hanwha Construction Division and Hyundai E&C plans to launch pre-sales for Forena Hillstate Jinju in Ihyeon-dong, Jinju, South Gyeongsang Province, in August. The complex will comprise eight buildings rising up to 35 above-ground floors over two basement levels, with units ranging from 59 to 110 square meters in exclusive use area and a total of 1,032 units.
Forena Hillstate Jinju will be the first apartment complex in Jinju developed by a major construction company consortium and the first major branded apartment in Ihyeon-dong. The complex sits within Jinju's original downtown area, giving residents access to a wide range of lifestyle amenities.
Chokseok Elementary School and Daeia Middle and High School sit directly in front of the complex, and residents will also have access to Pyeonggeo-dong's hagwon district, Jinju's main private tutoring hub. Commercial and cultural facilities — including Hanaromart, E-mart, Lotte Himart, Galleria department store and Megabox — are within roughly a 10-minute drive, as are Gyeongsang National University Hospital and Jinju Korea Hospital.
kim3956@heraldcorp.com
