Why is there no Samsung Raemian apartment in the Honam area?

After launching the Raemian brand, 94% were sold in the metropolitan area
Little local sales and no new sales in Honam
Samsung’s strategy to focus on rebuilding money in Gangnam
The strength of construction companies in Gwangju, such as lakeside and Jungheung, also played a part.

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The JoongAng Ilbo analyzed the current status of apartments built by large domestic construction companies called’Big 4’such as Samsung C&T, Hyundai E&C, DL E&C (formerly Daelim Industrial) and GS E&C by region.

Recently, competition for orders from large construction companies is fierce not only in the metropolitan area but also in the provinces. However, since the launch of the Raemian brand in 2000, Samsung C&T, which ranked first in the Ministry of Land, Infrastructure and Transport’s construction capability evaluation for seven consecutive years and has always maintained the No. 1 position in various apartment brand preference surveys, has not built a new apartment in Honam. In 1998 (Gunsan Naun Samsung Apartment) was the last time to use the former name of Raemian, Samsung Apartment. In contrast, there are 9 Raemian complexes in the Yeongnam area including Busan, Daegu and Ulsan. In particular, Raemian apartments are being built at four business sites in Busan.

Raemian, 94% of the capital area… Hillstate is popular in Honam

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Distribution status of completed apartments by construction company since 2010. Excluding officetels and commercial facilities. Graphic = Reporter Park Kyung-min [email protected]

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Samsung C&T, which merged with Samsung E&C in 1995, introduced Raemian, the first apartment brand in the construction industry. This brand was first applied to the’Yongin composition Raemian 1st round’ sold in January 2000. Since then, Raemian apartments have been built in 167 places, of which 94% (157) in the metropolitan area.

The second place in construction capability evaluation Hyundai E&C’s brand’Hillstate’ also does not have a high proportion of the Honam area. There are 3 apartment complexes in Honam area with Hillstate brand in Gwangju and 1 in Jeonju. However, Hillstate’s stock price has been rising recently in Honam. Gwangju’Hillstate Cheomdan’, which finished sales last month, recorded an average competition rate of 228.73 to 1, with 48,720 subscribers flocking to 213 households. According to a 2018 survey of Gwangju local information site’Sarangbang Real Estate’, Hillstate is the most preferred apartment brand for Gwangju citizens.

DL E&C has built 7’e-pyeonhansesang’ brand complexes in Honam so far. Since 2010, there are five. DL E&C entered Gwangju and Jeonju, as well as small Honam cities such as Gwangyang, Gunsan, and Suncheon. GS E&C’s apartment brand’Zai’ has 10 locations (4 locations since 2010) in Honam. GS E&C mainly supplied apartments to new residential areas in the region, such as Suwan, Sangmu, and Hi-tech districts in Gwangju and Eco-city in Jeonju. The subscription competition rate was high at the time of pre-sale, and after moving in, it is gaining popularity as a local landmark.

“Samsung C&T focuses on Raemian Town in Seoul”

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A panoramic view of the Raemian Daechi Palace complex in Daechi-dong, Gangnam-gu, Seoul. [중앙포토]

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An official from Samsung C&T said, “Because we are receiving orders mainly for urban improvement projects such as reconstruction and redevelopment of the metropolitan area, it is true that the proportion of regions is low,” he said. “Even if there is a business possibility, we are avoiding complexes that may cause problems such as civil complaints and excessive competition.”

Doo Seong-gyu, a senior researcher at the Korea Institute of Construction Industry, said, “If large construction companies in the past competed with the volume offensive regardless of region, they are now focusing on winning orders for complexes with excellent business feasibility by increasing their technology and brand value.” Focusing and making the whole area a town is Samsung C&T’s recent strategy.” An official from the construction industry who requested anonymity also analyzed that “Gangnam still has a lot of food, but there is no reason for Samsung C&T, the No. 1 in the industry, to look to the provinces.”

In fact, Samsung C&T obtained the right to rebuild Samho Apartment in Dogok-dong, Gangnam-gu, Seoul on the 9th, and there are Raemian apartments such as’Raemian Dogok County’ and’Raemian Graton’ near the complex. This area could be turned into a’Raemian Town’.

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A perspective view of Hyoja of Oullim at Hillstate in Jeonju sold in late 2019. It is the second Hillstate brand that Hyundai E&C will introduce in Jeonju. [중앙포토]

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Construction history in Gwangju, such as Lakeside and Jungheung, remains strong

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Another construction industry official said, “There is no reason to reject a business that is profitable even for Samsung C&T, which is the No. 1 in the industry. The reason that Samsung C&T has been passive in winning orders in the Honam region is because there were not many reconstruction and redevelopment projects with high business potential in this region.” said.

The great influence of local construction companies is also a reason why large construction companies such as Samsung C&T have been small in the Honam area. There are several companies that have started their business in Gwangju, the representative city of Honam, and have become a national construction company. Hoban Construction (12th in construction capability evaluation), Jungheung Construction (15th), Kumho Industrial (20th), Woomi Construction (25th), and Jeil Construction (31st). Both of the Gwangju reconstruction and redevelopment apartments that were completed last year were branded apartments by local construction companies (hoban and jungheung).

Reporter Kim Won [email protected]

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