Acro River Park condo advanced in Seoul’s Seocho District / Newsis
The latest increase in high-end model advertising and marketing in Korea’s condo development market has come at a price as an rising variety of landlords refuse to put orders with firms that reject their requests to make use of premium model names akin to “Acro,” “Le El,” “The H” and “Summit” for brand spanking new residential complexes.
After a number of disputes over naming rights led some landlords to change contractors, development corporations now face a dilemma over whether or not they need to preserve their luxurious manufacturers unique or enable broader use.
Earlier this month, landlords of Sangdaewon Redevelopment Zone 2 in Seongnam, Gyeonggi Province, started looking for a brand new development agency to exchange DL E&C after the corporate refused to call their new advanced “Acro” as a substitute of “e-Pyeonhansesang,” its midrange model.
DL E&C confronted the same situation prior to now with landlords of Seoul’s Sindang Redevelopment Zone 8, who canceled their contract in 2023. They turned to POSCO E&C, which proposed utilizing its high-end model “Otier” as a substitute of the mid-tier “The Sharp.”
Guests line as much as see mannequin houses for The H Xi Gaepo in Seoul, March 16, 2018. Yonhap
Likewise, landlords of Heukseok Redevelopment Zone 9 in Seoul canceled their contract with Lotte E&C in 2020 when the corporate declined their request to make use of the posh model “Le El” as a substitute of “Lotte Fortress.” The next 12 months, they chose Hyundai E&C, which agreed to make use of its premium model “The H” as a substitute of “Hillstate.”
In Seoul’s Noryangjin Redevelopment Zone 6 and Yeonhee Redevelopment Zone 1, landlords persuaded SK Ecoplant to make use of its top-tier model “De’Tremendous” reasonably than “View.”
These landlords argued that adopting premium model names boosts the perceived high quality and worth of their properties, even when it raises short-term prices or delays development.
In response to a nationwide survey of 17,100 adults by actual property app operator Dabang, 35.4 % stated they most popular flats with luxurious model names due to their upscale picture. Different causes cited have been wonderful design and high quality supplies (25.2 %), model shortage (14.4 %) and well-equipped neighborhood amenities (14.2 %).
Building corporations, nevertheless, warn that overusing luxurious manufacturers may finally dilute their worth.
“Premium condo manufacturers have been initially launched to justify excessive costs in prosperous areas akin to Seoul’s Gangnam District and alongside the Han River,” a development business official stated. “However these names have gotten much less unique as extra firms give in to landlords’ requests.”
Regardless of considerations about model inflation in condo names, builders proceed utilizing high-end advertising and marketing ways to draw shoppers.
GS E&C lately declared its “Excessive-end above Excessive-end” imaginative and prescient in a bid to win an order for the Seongsu Redevelopment Zone 1 mission in Seoul, even after deciding in 2024 to retain its predominant model “Xi” with out making a separate luxurious line.
