Development 148: July Pre-sales Knowledge

The creator is an analyst of NH Funding & Securities. He may be reached at [email protected] — Ed.  


In July, nationwide pre-sales quantity totaled 26,000 models, with a subscription ratio of 4:1. The variety of unsold tasks nationwide jumped sharply to 21 websites. Pre-sale quantity for Korea’s top-10 constructors accounted for a mixed 20% of the nation’s total housing provide.

July pre-sales quantity: 26,000 models (+11,000 models m-m)

As of July, the variety of pre-sales quantity nationwide totaled 26,000 models (+11,000 models m-m), a degree much like that witnessed final 12 months. By area, 6,900 models have been pre-sold within the Seoul Metropolitan Space, 8,600 models within the 5 regional metropolitan cities and Sejong, and 10,300 models in eight provinces. Quantity within the Yeongnam space took up 40% of the nationwide pre-sales whole, breaking down as: 1,800 models in Busan, 3,200 models in Daegu, 1,200 models in Ulsan, 1,100 models in Gyeongbuk, and a couple of,900 models in Gyeongnam. Nationwide, 74% of the pre-sale quantity was represented by non-housing affiliation members, with the remaining 26% going to housing affiliation members. Within the Seoul Metropolitan Space, the portion of non-housing affiliation members got here to 62%, a degree decrease than the nationwide common.

Undersubscribed tasks numbered 21 in July

In July, the mixed variety of subscribers within the first and second eligible teams for pre-sales amounted to 64,000 (-83% y-y, -30% m-m), with a subscription ratio of 4:1. Tasks with a subscription ratio of lower than 1:1 among the many first and second eligible teams for pre-sales (together with sure certified teams) numbered 21 nationwide, together with 13 within the Youngnam space (eg, 7 in Daegu, 2 in Ulsan, and 1 in Busan), 4 within the Honam space (eg, 1 in Gwangju), 2 in Gyonggi, 1 in Chungcheong, and 1 in Kangwon. The portion of undersubscribed tasks was 43%.

Out of the 21 undersubscribed tasks, 3 have been dealt with by main constructors. Whereas DL E&C’s Samcheonpo Ocean Prime (Sacheon, Gyeongsangnam-do, 677 models) recorded a comparatively sound subscription ratio of 0.93:1, Hyundai E&C’s two Daegu mission websites, specifically: 1) Hillstate Daemyeong Central #2 (Dalseo-gu, Daegu, 977 models); and a couple of) Hillstate Website positioning-Daegu Station Central (Website positioning-gu, Daegu, 762 models), each booked poor subscription ratios of 0.25:1 and 0.14:1, respectively. We word that pre-sale subscription ratios have been depressing for many large-scale house advanced tasks in Daegu, despite the fact that they have been led by main constructors with sturdy house model energy. Whereas further pre-sale occasions are prone to be held whereas building is underway, chances are high {that a} low cost will likely be supplied to draw consumers, which in flip ought to undermine total profitability for these tasks.

Prime-10 constructors account for 20% of whole housing provide

In July, pre-sale quantity at Korea’s top-10 constructors totaled 5,000 models. By area, the massive constructors’ portion stood at 42% within the Youngnam space and 22% in Chungcheong. None of their tasks within the Seoul Metropolitan Space and Honam undertook pre-sales occasions in the course of the month. For reference, the top-10 home constructors are Hyundai E&C, Hyundai Engineering, Samsung C&T, GS E&C, Daewoo E&C, DL E&C, HDC Hyundai Growth Firm, POSCO E&C, Lotte E&C, and SK Eco Plant.

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