The luxury rivalry among South Korea's major conglomerates, long fought over department stores and hotels, is expanding into housing. Lotte already runs Signiel Residence, and now Hanwha and Shinsegae are entering the residential business, betting on their experience serving VVIP clients.
Hanwha Galleria's newly established project financing vehicle, Hi-End Dosan PFV, will complete the acquisition of a development site at 633-3 Sinsa-dong in Seoul's Gangnam district on the 14th, industry sources said on the 13th. Hanwha Galleria bought the land for 236.7 billion won ($170 million) in July and plans to build a top-tier residential complex there.
The housing push is a new business under Hanwha Group's tech and life holdings division, launched last month under Kim Dong-sun, president of Hanwha Machinery & Service Holdings. Hanwha has no track record in housing development, but decided to take on the project itself, viewing its grasp of ultra-high-net-worth lifestyles — built through operating the Galleria luxury hall and The Plaza hotel — as a core strength.
Shinsegae Group said this month that it will build 49 branded residences alongside the Aman Seoul hotel in Seoul's Cheongdam-dong. Branded residences are homes run with hotel-style service. At Aman Seoul, Aman will handle architecture and design as well as concierge, housekeeping, spa and dining operations after completion. The units will be tied to the membership-based Aman Club, giving residents access to hotel services at all times. Lotte Group opened the domestic market for top-tier serviced residences in 2017, when it began selling units at Signiel Residence.
The industry sees the rush accelerating as demand for ultra-luxury housing spreads. A 489-square-meter unit at Signiel Residence changed hands for 21 billion won ($15.1 million) last October. Another draw is that the buyer pool is not limited to South Korea. "This isn't about the domestic market alone — global demand is part of the calculation," an official in the hotel industry said. "There is more than enough demand for supply of a few dozen ultra-expensive units that guarantee privacy, rather than hundreds of hotel rooms."
