The latest News
Ssangyong E&C’s ‘The Platinum’ Enjoys Presales Rally Amid Downturn
Ssangyong E&C is revamping its housing business. The company launched a newly merged housing brand, The Platinum, in 2018, and has significantly increased the volume of its housing offerings this year, thereby aiming to firmly establish the new brand in the market.
According to an industry announcement made on March 13, Ssangyong E&C has significantly increased its housing presales volume year-on-year. The company is expected to offer 7,682 units in the capital area (e.g. Seoul and Incheon) as well as Daegu, Busan and other parts of Gyeongsangnam-do Province, marking an 847 percent increase from 2019’s total of 811 units.
The Korean Government has recently imposed a series of strict real estate market regulations, including the December 16th measures announced last year and the February 20th measures announced this year. However, against this back of strengthened regulatory measures, coupled with the spread of COVID 19, the company has chosen to take the bull by the horns.
In particular, Ssangyong E&C is striving to firmly entrench The Platinum, launched as a new concept in the world of housing brands, within the market. Previously, in 2018, the company merged its apartment brand Yega and its mixed-use building brand Platinum into The Platinum, to enhance brand value and to revitalize the housing development business which had remained stagnant since the company graduated from a workout program in 2015.
According to Ssangyong E&C, last year allowed the company to “catch its breath” after the brand merger. The company approached tenders conservatively, by entering bids that offered outstanding presale opportunities and profitability. This year, the company has finally become able to dramatically increase housing offerings.
In fact, Ssangyong E&C’s housing complexes that have gone on presale this year have enjoyed remarkable popularity, proving that its strategy was well thought-out. In January and February this year, the company launched housing presales in the capital area, including Seoul and Gyeonggi-do Province, with all units sold out during the first round.
In the case of Ssangyong The Platinum Seoul (to be built in Jungnim-dong, Jung-gu, Seoul), the presale raffle for the 576 officetel units drew 2,388 buyers, recording a competition ratio of 4.2 to 1. It is thought that such popularity reflected the fact that the property is the first officetel in 17 years being offered in the Jungnim-dong area.
Similarly, Ssangyong The Platinum Omokcheon Station, which went on presale in Suwon, Gyeonggi-do Province earlier this month, attracted 6,788 potential buyers competing for 408 units, with all units subsequently sold out. Its popularity is especially noteworthy, given that the February 20th measures to curb real estate market speculation made the site part of a control region, where strict regulations apply regarding sales of apartment pre-purchase rights and for highest-priority applicant eligibility during apartment presale raffles.
“Since the brand merger, we have secured bids that involve housing complexes with outstanding locations, profitability and presale opportunities. These complexes have now become available for presale this year,” a company official said. “Although the real estate market is experiencing a relative downturn, as we are offering complexes with strong competitive advantages this year, we expect outstanding results.”