“Brand Is Competitiveness” — Demand Pours Into ‘Brand Towns’

[Financial News] As the influence of brands becomes increasingly evident in the apartment sales market, interest is growing in “brand towns”—residential districts developed under a single brand in one area. By securing recognition within their regions and offering price stability and room for appreciation, these developments are influencing homebuyers’ choices.
According to Cheongyak Home operated by the Korea Real Estate Board (KREB) on the 10th, 196,206 first-priority applicants applied for 51 branded apartment complexes developed by the 10 largest construction companies nationwide from January through June this year. The complexes offered 19,917 units for general sale and recorded an average competition rate of 9.85 to 1.
During the same period, 82 non-branded apartment complexes offered 31,304 units for general sale, attracting 74,866 first-priority applicants. Their average competition rate was just 2.39 to 1. In simple terms, complexes carrying the brands of major construction companies recorded a rate more than four times higher.
Industry observers say that when apartments under the same brand are concentrated in a particular area, the scale and recognition of the complexes can grow. Because multiple complexes offer similar product features, including community facilities, landscaping, and exterior design, the surrounding area can come to be perceived as a single residential district.
In fact, some brand towns have seen increases in the prices of presale rights and existing apartments. According to the Actual Transaction Price Disclosure System of the Ministry of Land, Infrastructure and Transport, presale rights for the 84-square-meter unit at City O’Ciel Complex 7 in Hagik-dong, Michuhol-gu, Incheon, traded at 717.35 million won in July—more than 70 million won above the original sale price. City O’Ciel is a private urban development project brand being developed by IPARK Hyundai Development, Hyundai Engineering and Construction, and POSCO E&C on Block 1 of Yonghyeon-Hagik. The project is creating a brand town with 13,000 households.
An 84-square-meter unit at Cheongju Gagyeong IPARK Complex 3 in Gagyeong-dong, Cheongju, North Chungcheong Province, also traded at 785 million won in July, setting a record high. Gagyeong-dong has a residential district under the same IPARK brand, comprising Complexes 1 through 6 and more than 6,000 households in total.
An industry official said, “Complexes developed as a single-brand town build strong recognition in their regions based on high residential satisfaction, and the brand is effectively perceived as value. As a result, they tend to be highly preferred by actual homebuyers. Brand-town complexes lead local market prices during upswings and show strong defensive power during downturns, making them worth watching amid uncertain market conditions.”
As a result, market attention is turning to brand-town complexes scheduled for supply. Hyundai Engineering and Construction plans to supply Hillstate Godeok Elist in September in Blocks A12 and 65 of the Pyeongtaek Godeok Internationalization Planning District. A Hillstate brand town comprising approximately 4,500 households across six blocks is expected to be built in Godeok International New Town. IPARK Hyundai Development plans to sell Cheonan IPARK CITY Complexes 3 and 4 in September in Budae-dong, Seobuk-gu, Cheonan, South Chungcheong Province. Including this project, the area will be developed as a single-brand IPARK town with a total of 6,010 households.
LOTTE Engineering & Construction will sell Phase 2 of Gyeonggi Gwangju Station Lotte Castle Signature in October. It is a large-scale Lotte Castle brand town being developed in the areas of Yangbeol-dong (1BL) and Ssangnyeong-dong (2BL) in Gwangju, Gyeonggi Province.
Development has also begun in earnest on All New Champions City, a project covering approximately 298,000 square meters of the former Jeonbang and Ilshin Textile sites in Jeonnam-Gwangju Integrated Special City. The project will include a residential district with 4,315 households, The Hyundai Gwangju, a luxury hotel, a cultural park, and office facilities.

[email protected] Choi A-young Reporter