- House Prices Vary Depending on View Rights... River and Sea Views Show Higher Value Than Mountains
- 'Ungcheon Lotte Castle Marina' in Yeosu Ungcheon District Attracts Attention with Permanent Sea View (Except Some Units)
The housing market is experiencing a divide in fortunes based on 'view rights.' As the perception that a view right equates to a premium grows, price differences of up to several hundred million won are being observed depending on whether a property has a view, even within the same area.
Recently, courts have also recognized the value of view rights, ruling that they account for about 20% of a home's price. Amid this, an analysis has drawn attention by showing that premiums for sea or river views are higher than those for mountain views.
According to a doctoral dissertation in business administration titled "A Comparative Study on the Value of View Rights in Inland and Coastal Cities - Focusing on Seoul and Busan" (2016, Jung Tae-yoon) published by Changwon National University Graduate School in 2016, in the inland city of Seoul, river views (18.19%) have a greater impact on apartment prices than mountain views (11.89%). In the coastal city of Busan, sea views (22.66%) influence apartment prices more than mountain views (-10.49%) or river views (8.21%). Notably, sea views in Haeundae District, Busan, which faces the sea, could affect prices by as much as 47.91%.
A real estate expert said, "Recently, the housing market places the highest importance on improving quality of life in line with social trends. As the value of factors related to happiness in life, such as view rights, gradually increases, complexes with sea or river views are gaining popularity with high preference, leading to significant price increases."
In fact, complexes with river or sea views continue to soar in the housing market. For example, in Banpo-dong along the Han River, the landmark 'Banpo Xi,' which led the market for over ten years, has ceded its landmark status to 'Acro River Park,' which offers views of the Han River.
According to actual transaction prices from the Ministry of Land, Infrastructure and Transport, an 84㎡ unit in Acro River Park was traded for 3.05 billion won in December last year. In comparison, a unit of the same size in Banpo Xi was traded for 2.55 billion won in the same month, showing a price difference of about 500 million won depending on the view.
In the pre-sale market, complexes with sea and river views have also maintained high popularity. In September last year, 'Songdo The Sharp Central Park Phase 3,' launched in Songdo International City, attracted over 53,000 applicants due to its advantage of views of the West Sea, finishing first-round subscriptions with an average competition rate of 206.13 to 1.
It is not limited to apartments. In October last year, 'Oshiria Switzen Matie,' a residential-type lodging facility launched in the Oshiria tourist complex in Busan, also offered sea views (except for some units) and completed subscriptions with an average competition rate of 10.4 to 1. According to local real estate officials, some high-floor units with sea views in this complex have already formed premiums ranging from several tens of millions to 100 million won.
Meanwhile, in Yeosu Ungcheon District, the 'Ungcheon Lotte Castle Marina' officetel, which offers permanent sea views (except for some units), is attracting attention as it is about to be launched this month.
Ungcheon Lotte Castle Marina will be developed as an officetel complex with five buildings, ranging from three basement floors to seven above-ground floors, totaling 550 units with sizes from 28 to 70㎡, located at 1887-1, Ungcheon-dong, Yeosu City. Asia Trust (trustee Forbros) is the developer and distributor, and Lotte Construction is responsible for simple construction.
The complex is situated right in front of the marina port in Ungcheon District, allowing permanent sea views (except for some units). Additionally, it boasts a rich green environment with Isunsin Park, which is 1.5 times larger than Yeouido Park, nearby. The vicinity also includes Haebyeon Culture Park, Isunsin Marina, Odongdo, Dolsando, and beaches, providing residents with a more pleasant living environment.
Transportation conditions are also favorable. KTX Yeocheon Station, KTX Yeosu Expo Station, Yeosu Airport, the main bus terminal, and the coastal passenger terminal are all nearby for convenient use. Furthermore, once the Ungcheon~Soho Bridge, scheduled to open in June 2022, is completed, the area's transportation environment is expected to become even more convenient.
Infrastructure is abundant as well. Facilities such as CGV, Megabox, and hospitals are located nearby. Since sales facilities will also be included within the complex, residents' living convenience is expected to increase further.
A sales official said, "This pre-sale complex is attracting considerable expectations from buyers because it offers highly sought-after sea views. We ask for much interest in the full-scale sale, as it applies floor plans tailored to the increasing number of one- to two-person households and various specialized designs of the premium brand Lotte Castle."
The complex will incorporate Lotte Castle's excellent technology. First, the road-type complex layout enhances sea views and maximizes comfort.
The model house for Ungcheon Lotte Castle Marina will be located at 1880-6, Ungcheon-dong, Yeosu City, and is scheduled to open this month.
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