The Higher the Sale Price, the Greater the Price Increase... 'Ochang-gwon Gyoseong District Poonglim I-One Trinium' Attracts Attention

"267.3 million KRW (sale price) → 850 million KRW (current market price)." This compares the sale price at the time of the 10-year sale in 2011 and the current market price of Sejong The Sharp Lake Park in Hanteul Village 3rd Complex, Eojin-dong, which was the most expensive sale in Sejong City in 2011. Currently, the market price of this apartment with an exclusive area of 84㎡ is 850 million KRW, a level comparable to Gangnam in Seoul. This is more than three times higher than the 2011 sale price (267.3 million KRW). It far exceeds the average apartment price increase rate in Sejong City during the same period.

Interestingly, Sejong The Sharp Lake Park was criticized at the time of sale for its high price, nearly 9 million KRW per 3.3㎡, which was said to have "brought the specter of high sale prices to Sejong City."

Moreover, Hildesheim in Cheongju, Chungbuk, which caused controversy over high sale prices by setting the sale price at 8.15 million KRW per 3.3㎡ when accepting applications in 2014, now has a market price of up to 9.17 million KRW per 3.3㎡, which is 1.02 million KRW higher than the initial sale price per 3.3㎡. This also exceeds the average apartment price increase in Cheongju during the same period.

JPK Realty CEO Jeong Jun-hwan said, "Apartments criticized for high sale prices are often located in landmark-worthy prime locations," adding, "As a result, after moving in, they mostly become the 'leading' apartments in the area, driving up surrounding house prices."

In the local housing market, so-called 'leading' apartments that were sold amid controversy over high sale prices are attracting attention from homebuyers by recording high premiums after move-in. Since these apartments are mostly located in excellent locations and have superior product quality, their price increase rates are often higher than those of general apartments.

Therefore, in the housing market, the formula "the higher the sale price of an apartment, the higher the price increase rate" is widely accepted. According to a recent survey by a real estate information company, among apartments traded in the metropolitan area over the past two and a half years, apartments with sale prices over 900 million KRW showed an average monthly actual transaction price increase rate of about 11%, the highest. In contrast, apartments priced between 600 million and 900 million KRW had actual transaction price increase rates of 5.8% in the metropolitan area and 5.4% in local areas. Apartments priced below 300 million KRW showed an increase rate in the 0% range in both metropolitan and local areas.

As a result, a phenomenon where apartments with higher sale prices sell well is also occurring. In June last year, Incheon Hillstate Lake Songdo Phase 3, sold at the highest sale price in Incheon at 22.3 million KRW per 3.3㎡, recorded an average application competition rate of 44.74 to 1, with all housing types closing in the first priority. This apartment's sale price was set higher than that of Songdo International City DMCity, sold nearby in October last year at 20 million KRW per 3.3㎡, sparking controversy over high sale prices.

On the 11th, Wirye Xi The City, which also received applications amid controversy over high sale prices, had about 23,000 applicants from the metropolitan area for 286 special supply units, recording an average competition rate of 83.48 to 1. This apartment's sale price was 22.61 million KRW per 3.3㎡ (weighted average), higher than Hillstate Richville Gangil in the surrounding Gangdong-gu area (22.34 million KRW).

Meanwhile, high-priced apartments are also being sold in Jincheon, Chungbuk, an area rich in surrounding development benefits, attracting attention. The subject is ‘Ochanggwon Gyoseong District Poonglim I-Won Trinium,’ sold by Poonglim Industry (Chairman Ji Seung-dong) in Jincheon-gun, Chungbuk. This apartment is priced at about 8 million KRW per 3.3㎡, considered a high-priced apartment in the region. However, it is a large complex of 2,450 units located in a non-regulated area, and demand is high due to expected benefits from surrounding development projects such as the Ochang Synchrotron Accelerator Complex, Osong 3rd National Bio Science Industrial Complex, and Chungju Biohealth National Industrial Complex.

Specialized services befitting the mammoth complex size will also be applied. Residents can enjoy differentiated services such as concierge services, which were previously only available in luxury residential-commercial complexes, infant care services, and the attraction of an international language academy within the complex.

The sales promotion center for Ochanggwon Gyoseong District Poonglim I-Won Trinium is operating in Jincheon-gun, Chungbuk.