Benefiting from Repeated Regulations' Balloon Effect in Gyeongsan... Jeil Construction Co., Ltd. Unveils 'Gyeongsan Hayang Jeil Punggyeongchae'

Recently, non-regulated areas have been enjoying a balloon effect due to the government's stringent housing market regulations. Demand for subscription is pouring into non-regulated local small and medium-sized cities that are free from various regulations such as subscription, resale, and loans, making them popular.

‘The Sharp Centro,’ supplied last month in Baebang-eup, Asan-si, Chungnam, recorded a high competition rate of an average of 52.1 to 1 and a maximum of 98.4 to 1 in the first-priority subscription. Also, ‘Gyeryong Xi,’ sold in Gyeryong-si, Chungnam, in the same month, closed the first priority with an average competition rate of 27.7 to 1, and ‘The Sharp Diocean City Phase 2,’ launched in Gunsan, Jeonbuk, last February, also showed a first-priority average competition rate of 58.8 to 1, setting the highest record in Gunsan’s history.

Experts cite the reason for the demand concentrating in non-regulated areas as the less stringent conditions for subscription, resale, and loans compared to regulated areas such as speculative overheated districts or adjustment target areas. After six months of subscription account enrollment (one year in the metropolitan area), both household heads and members can apply for subscription, there is no re-winning restriction, and the resale restriction period for pre-sale rights is only up to six months. The Loan-to-Value ratio (LTV) is also applied up to 70%, making it easier to prepare funds compared to regulated areas.

As the situation unfolds, premiums worth several hundred million won have formed even on pre-sale rights in non-regulated areas. According to the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system, the pre-sale right for an 84㎡ (25th floor) unit of ‘Jungsan Xi’ in Jungsan-dong, Gyeongsan-si, Gyeongbuk, sold in December last year, was traded at up to 664 million won last month. At that time, the sale price of this apartment was around 540 million won, resulting in a price difference of over 120 million won in just four months.

An industry official said, “Due to the balloon effect of regulated areas and the preference for new apartments, the popularity of pre-sale complexes in local small and medium-sized cities is increasing,” adding, “Especially in non-regulated areas rich in development benefits, demand is pouring in not only from within the region but also nationwide, leading to continuous success.”

Meanwhile, Jeil Construction Co., Ltd. is preparing to supply ‘Gyeongsan Hayang Jeil Punggyeongchae’ in Gyeongsan-si in April. Although some areas of Gyeongsan have been designated as adjustment target areas, the Hayang district where the complex will be built is outside the scope of regulation, so a balloon effect is expected, making it one of the areas of high interest among buyers.

Gyeongsan Hayang Jeil Punggyeongchae will be constructed in the Gyeongsan-si area with a total of 4 buildings, ranging from 2 basement floors to a maximum of 35 floors above ground, totaling 614 households. It consists of medium-sized units preferred by actual users, with exclusive areas of 74㎡ and 84㎡ types.

It is a school zone complex adjacent to Hajoo Elementary School, Muhak Middle School, and Muhak High School, and has an excellent educational environment with Daegu Catholic University, Kyungil University, and Hosan University nearby. In addition, it boasts solid living infrastructure. It is convenient to use shopping facilities such as Nonghyup Hanaro Mart nearby, as well as Costco, E-Mart, and Lotte Outlet located in Daegu Innovation City, and various cultural facilities such as Gyeongsan City Library, Gyeongsan City Cultural Center, Megabox Hayang, and AZIT Maker Space are also available.

The fact that it is a workplace-close complex with office facilities nearby is also noteworthy. It is a workplace-close apartment located near the Knowledge Industry District, Gyeongsan 1, 2, 3, 4 General Industrial Complexes, and Daegu Sinseo Innovation City Advanced Industrial Complex, boasting a fast commuting environment. Next to the Hayang district where the complex is located, the construction of the Gyeongsan Knowledge Industry District, a knowledge-based industry center for parts and materials covering about 1.16 million pyeong, is underway. An access road directly connecting the Knowledge Industry District and Hayang district is under construction, and the Namsan-Hayang national highway replacement road connecting Gyeongsan 1, 2, 3, 4 industrial complexes is also scheduled to be constructed, enabling convenient commuting.

Various development benefits are also planned, increasing future value. The extension of Daegu Subway Line 1 connecting southwestern and eastern Daegu, Hayang Station, is being promoted with the goal of operation in 2023, and the construction project of the Namsan-Hayang national highway replacement bypass road is progressing smoothly, which is expected to greatly improve accessibility to Daegu and surrounding areas.

Meanwhile, the model house for Gyeongsan Hayang Jeil Punggyeongchae is located in Dong-gu, Daegu.