Seven in 10 First-Priority Housing Applicants Choose Top 10 Builders

[Financial News] This year’s presale market has seen a marked concentration of applications on developments built under the brands of the top 10 companies by construction capability ranking. Preference for large builders with reliable construction experience and strong financial management capabilities appears to have translated directly into application results.
On the 16th, real estate research firm RealToday analyzed data from the Korea Real Estate Board’s ApplyHome portal and found that a total of 363,777 first-priority applications were submitted for 83,440 units offered for general sale nationwide from the first through third quarters of this year. The overall average competition rate was 4.36 to 1.
Of these, 253,720 people—69.7% of all first-priority applicants—applied for developments offered by the top 10 builders. The top 10 builders supplied 37,385 units for general sale in the first three quarters of this year, just 44.8% of the total, but accounted for a much larger share of applications. Their average first-priority competition rate was 6.79 to 1.
By contrast, builders outside the top 10 supplied 46,055 units, accounting for 55.2% of the total, but received only 110,057 first-priority applications (30.3%). Their average competition rate was 2.39 to 1.
All three developments with the highest application competition rates in the first three quarters of this year were also offered by top 10 builders. Arc Road Seocho, developed by DL E&C Co., Ltd., received 32,973 applications for 30 units offered for general sale, posting the highest competition rate at 1,099.1 to 1. It was followed by POSCO E&C’s Otier Banpo (710.23 to 1) and Lotte Construction’s Ichon Le El (134.97 to 1).
An industry official said, “There is steady demand for large builders, with buyers expecting reliable construction and differentiated products,” and noted, “The tendency to place greater importance on brand value is becoming even more pronounced in redevelopment and other maintenance projects, as well as throughout the presale market.”
Amid this preference for large builders, attention is also turning to promising new developments being unveiled this fall by major companies among the top 10 builders.
IPARK Hyundai Development Company plans to launch sales in October for IPARK Mudeungsan Sky Fore in the Hak-dong area of Dong-gu, Jeonnam-Gwangju Integrated Special City. The development will be a large-scale branded complex with three basement levels, up to 29 above-ground floors, 19 buildings and a total of 2,299 units. Of these, 1,387 units with exclusive areas of 59–135 sq. m will be offered for general sale. Located within walking distance of Namgwangju Station on Gwangju Metro Line 1, it will also benefit from a double station-area premium when the opening of Gwangju Metro Line 2 turns the station into a transfer hub.
Hyundai Engineering is selling Hillstate Seongnam Metroble, a residential officetel development with 189 units measuring 74–95 sq. m in exclusive area, in the Dandae-dong area of Sujeong-gu, Seongnam, Gyeonggi Province, near Dandaeogeori Station on Subway Line 8. A planned legal district is located right next to the development, raising expectations.
Hyundai Engineering and Construction is selling Hillstate Songpa The Grid, with 1,393 units measuring 34–119 sq. m in exclusive area, in Jangji-dong, Songpa-gu, Seoul. It is within walking distance of Bokjeong Station, served by Subway Line 8 and the Suin–Bundang Line, and is also close to Suseo Station (KTX, Metropolitan Area Rapid Transit Line A (GTX-A), and Seoul Subway Line 3), giving it excellent regional transport links.

[email protected] Jeon Min-kyung Reporter