Strengthened Regulations with the June 17 Real Estate Measures... 'Sewoon Prugio Hericity' Offering Escaping Regulations

The real estate market is once again stirred by the announcement of the high-intensity real estate measure, the June 17 Real Estate Measure. This 21st announced measure designates most areas in the metropolitan area, Daejeon, and Cheongju as regulated areas and speculative overheating districts, and strengthens the requirements for housing mortgage loans for actual demand and regulations on jeonse (key money deposit) loans in regulated areas.

It also aims to curb investments using housing mortgage loans by housing sales and rental business operators and to block tax evasion through corporations by reorganizing the tax system.

Therefore, not only areas outside the regulated zones but also complexes that started sales after the announcement of the resident recruitment notice before the strengthened regulations are subject to the previous regulations before the June 17 Real Estate Measure, attracting the attention of actual demand buyers.

In particular, Daewoo E&C’s ‘Sewoon Prugio Hericity,’ which is launching its first sale in 14 years in the Sewoon district, is excluded from the June 17 regulation. This complex held formal contracts on the 18th and 19th and is currently contracting the remaining units.

The current strengthened regulations impose the following when taking out housing mortgage loans: ▲For non-homeowners, a mandatory move-in within six months regardless of housing price ▲For one-homeowners, an obligation to dispose of the existing home and move into the new home within six months.

‘Sewoon Prugio Hericity’ is excluded from the strengthened regulations as it applies the previous rules: ▲Non-homeowners are exempt from the move-in obligation ▲One-homeowners must dispose of the existing home and move in within one year.

Additionally, although housing mortgage loans for housing rental business operators are banned in all areas, ‘Sewoon Prugio Hericity’ allows loans under the existing regulation with an LTV ratio of 20?50%.

As a result, inquiries about the contract period are increasing among buyers at the ‘Sewoon Prugio Hericity’ model house. A sales official explained, “As existing interested buyers anticipate difficulty in purchasing homes for the time being due to the strengthened regulations, they are shifting to actual demand.”

‘Sewoon Prugio Hericity’ is located at 151-1, Inhyeon-dong 2-ga, Jung-gu, Seoul, in the Sewoon 6-3 district. This complex is a mixed-use residential building with 614 units, ranging from 24 to 42 square meters in exclusive area, consisting of 9 basement floors to 26 above-ground floors. It supplies 293 urban-type residential units, and in the June sale, urban-type residential units located on the 16th floor and above were sold first.

Although it is a small urban-type multi-family housing, units located on the top floors above the 16th floor enjoy excellent views. Balcony expansion is provided as a basic option, increasing the effective living area by 30?40%. Inside the units, premium imported hardwood flooring and finishing materials, built-in furniture, and electronic appliances are all offered as free options, while the main unit prices range from 400 million to mid-500 million KRW, demonstrating price competitiveness.