‘Cheonan Hanyang Sujain Eco City’ Draws Attention in Cheonan Non-Regulated Area

Recently, amid the government's stringent housing regulations, there has been a strong upward trend in non-regulated areas as niche markets. Demand for subscription has surged in local cities and some metropolitan areas that are exempt from various regulations such as subscription and resale restrictions, leading to a series of sellouts.

'The Sharp Centro,' launched in Baebang-eup, Asan-si, Chungnam, recorded an average competition rate of 52.1 to a maximum of 98.4 to 1 with 26,822 applications for 508 units (excluding special supply) in the first-priority subscription on the 23rd. On the same day, 'Shin Asan Moa Elga Vista Phase 2,' supplied as private rental apartments in Sinchang-myeon, Asan-si, also closed subscriptions with a high competition rate of an average 48.5 to 1 and a maximum of 388 to 1, receiving 44,754 applications for 922 units.

'Gyeryong Xi,' launched on the 16th in Gyeryong-si, Chungnam, also closed the first priority with an average competition rate of 27.7 to 1, and 'Yangpyeong Station Hanla Vivaldi' Phases 1 and 2, which held first-priority subscriptions on the 4th in Yangpyeong, a non-regulated area in the metropolitan area, recorded an average competition rate of 13.5 to 1.

Non-regulated areas with less stringent conditions on subscription, resale, and loans, resale premiums also on the rise

The popularity of non-regulated areas lies in the fact that conditions such as subscription, resale, and loans are less stringent compared to speculative overheated districts or adjustment target areas. After joining a subscription savings account, both household heads and members can qualify for first priority if the account has been held for more than one year in the metropolitan area or six months elsewhere. There is no restriction on re-winning, and the resale restriction period is only up to six months. The loan-to-value ratio (LTV) can be applied up to 70%, making it easier to raise funds, which is also considered attractive.

As subscription competition rates in non-regulated areas rise, resale premiums are also on the rise. According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, a resale right for an 84.6㎡ unit on the 16th floor of 'Sokcho Lotte Castle in the Sky' in Dongmyeong-dong, Sokcho-si, Gangwon-do, was traded for 503.14 million KRW on the 3rd. Compared to the price of the same floor 14th unit of the same size traded at 467.1 million KRW in January, the market price rose by more than 30 million KRW in just two months.

Prime location in the non-regulated area Pungse district, 'Cheonan Hanyang Sujain Eco City' offered at an affordable price

Hanyang Co., Ltd. is currently selling 'Cheonan Hanyang Sujain Eco City' in Cheonan-si. The affordable price has attracted attention amid the continuous rise in the average price of private apartments nationwide.

Cheonan Hanyang Sujain Eco City is being developed in Cheonan-si, Chungnam, with 30 buildings ranging from two basement floors to 29 above ground, totaling 3,200 units with sizes ranging from 59 to 84㎡. All units are composed of small to medium sizes preferred by buyers. The number of units by type is ▲59㎡ 554 units ▲75㎡ 524 units ▲84㎡A 463 units ▲84㎡B 499 units ▲84㎡C 584 units ▲84㎡D 576 units.

The sale price of Cheonan Hanyang Sujain Eco City is set at an average of 8 million KRW per 3.3㎡, with prices by type at approximately 190 million KRW for the 59㎡ type, 240 million KRW for the 75㎡ type, 290 million KRW for the 84㎡A and B types, and 270 million KRW for the 84㎡C and D types.

This price is cheaper than the average sale price of private apartments nationwide as well as the average price in other regions. According to data on private apartment sale price trends released by the Housing and Urban Guarantee Corporation (HUG), as of the end of February 2021, the average sale price of private apartments nationwide was 13.16 million KRW per 3.3㎡. In particular, the average sale price in other regions, including Cheonan, was 10.55 million KRW per 3.3㎡, which is more than 2 million KRW higher per 3.3㎡ compared to Cheonan Hanyang Sujain Eco City.

The sale price of Cheonan Hanyang Sujain Eco City is also affordable compared to apartments sold in Cheonan. Compared to 'Ian Grangcentum Cheonan,' the most recently sold apartment in Cheonan (Bongmyeong-dong, Dongnam-gu, Cheonan / November 2020), there is a price difference of up to 100 million KRW. The sale price of the 59㎡ unit of Ian Grangcentum Cheonan was about 288.37 million KRW at the highest price, which is about 90 million KRW more expensive than the 59㎡ unit of Cheonan Hanyang Sujain Eco City. For the 84㎡ unit, Ian Grangcentum Cheonan's sale price was up to 423.77 million KRW, while Cheonan Hanyang Sujain Eco City is only about 290 million KRW, showing a difference of about 130 million KRW.

Moreover, while most areas of Cheonan-si are regulated as adjustment target areas, Pungse-myeon, where the complex is located, is a non-regulated area, so it is expected to attract much interest as it is free from resale and loan restrictions. In fact, Cheonan Hanyang Sujain Eco City allows a loan-to-value ratio (LTV) of up to 70%. Additionally, it offers a fixed first deposit of 10 million KRW to reduce the financial burden on buyers.

A sales official said, "Since it is supplied at a reasonable price compared to other newly supplied complexes nearby, we expect continued high interest from buyers."

The model house of Cheonan Hanyang Sujain Eco City is located in Asan-si, Chungcheongnam-do.