쌍용건설

The Platinum Will Launch 8,000 Units in 2020, Mostly During the First Half

 

Growth in the Apartment Segment Will Raise Construction Capability Evaluation Ranking

 

Ssangyong E'C is making efforts to revitalize its housing business this year. Drawing on the strength of its new brand The Platinum, which launched in 2018, the company is planning to launch some 4,600 housing units (e.g. apartment and officetel units) in Seoul and the Seoul Capital Area as well as in Busan and Daegu, during the first half of this year. In particular, after a one-year hiatus following the successful presales of The Platinum Bupyeong in January last year, the company is expected to devote much of its energy to the housing business. The industry expects that Ssangyong E'C's enhanced performance in the housing sector will raise its domestic ranking in the construction capability evaluation category, thereby resolving a long-term challenge for the company. However, the fact that a considerable portion of the new launches are a continuation from last year's offerings, and that most are contracted projects, are considered drawbacks.

 

According to the announcement released by the company on January 10, a total of 7,354 new housing units will be introduced to the market by the second quarter of this year. Among them, 4,676 units, that is, more than half of the total offering, will be available for general sales, and the general units will consist of 3,199 apartment units, 363 mixed-use building units (including officetel units), 768 officetel units and 52 terrace house units. Presales for the first half of this year will mainly take place in Seoul, the Seoul Capital Area, Daegu and Busan - regions which have recently witnessed enthusiastic consumer interest. Regarding general presales by region, the company will offer 3,015 units in Seoul and the Seoul Capital Area, 301 units in Busan, 84 units in Daegu, 874 units in Gyeongsangnam-do Province and 192 units in Jeollanam-do Province.

 

This year's presales will begin in earnest in February, when three locations will launch sales: The Platinum Omokcheon Station in Gyeonggi-do Province (930 units, including 721 units for general presales) The Platinum Haeundae (mix-used building) in Busan (171 units for general presales, including officetel units) The Platinum Seoul Station (576 officetel units for general presales). The Platinum Seoul Station, in particular, deserves attention because it is the first offering in Seoul after the launch of the merged brand The Platinum some two years ago.

 

In March, presales will continue in the Gangnam District, Seoul and Suseong-gu, Daegu, the hottest property markets nationwide of late. Specifically, 192 general officetel units of The Platinum Jamsil in Songpa-gu, Seoul, as well as 294 general units (including officetel units) related to a mixed-use building development project in Beomeo-dong, Suseong-gu, Daegu, will go on presale.

 

In April, the supply volume is scheduled to increase, with a total of 2,670 units expected to be offered for general presales between April and June. The offerings involve large-scale apartment development projects, including the Juan Zone 3 Redevelopment Project in Incheon (2,054 units, including 1,327 units for general presales) and the Gyobang Zone 1 Redevelopment Project in Changwon, Gyeongsangnam-do Province (1,538 units, including 874 units for general presales).

Moreover, during the second quarter, 482 units (130 units for general presales) from a regional housing association apartment in Chowol-eup, Gwangju-si, Gyeonggi-do the same number of total and general units from another housing association apartment in Geoje-dong, Busan and 192 general units from a mixed-use building in Wando-gun, Jeollanam-do are slated to go on presale. The industry expects that Ssangyong E'C's housing development performance this year will likely raise the company's construction capability evaluation ranking significantly, starting from next year.

 

In 2019, the company ranked 32^nd in the evaluation, down from the 20^th place in 2015, when it successfully graduated from court receivership. Ssangyong E'C once even ranked 6^th during the mid-1990s, but its ranking steadily ped as the company underwent a corporate workout and court receivership and never recovered mainly due to lackluster performance in the housing business. Over the last three years, the number of housing units supplied by the company remained at the same low level, with some 1,300 units in 2017, some 1,600 units in 2018 and some 1,000 units in 2019.

 

"Except for the apartment business, Ssangyong E'C has ranked among the top ten firms in the civil engineering category involving domestic and overseas construction of subways, expressways and water supply systems, as well as in the construction category involving the building of accommodation, educational facilities and hospitals," one company official said. "Since we are planning to launch some 8,000 housing units in the market this year, we are expecting a rebound in our construction capability evaluation ranking."