- Material and labor costs, along with land prices, rise together causing 'triple pressure'
- New apartment sales face tough times ahead... concerns over sharp supply decline
The simultaneous rise in construction raw material prices, labor costs, and land prices is increasing pressure on apartment sale prices. Experts say, "Sale prices are still relatively low and inevitably will continue to rise." Accordingly, there is strong interest from buyers aiming to secure apartments that have entered the sales phase.
Sale prices are calculated by adding building costs (construction costs) and land costs (land prices). Material prices and labor costs are included in construction costs and added to the sale price. Currently, prices of construction materials such as cement, rebar, and aggregates have risen sharply, which could significantly increase the basic construction costs.
An industry insider said, "Even apartments considered expensive in some areas were sold cheaply given the current inflation situation," adding, "The fundamental reason for construction halts, especially at reconstruction sites, is the deterioration of profit structures."
There is growing support for the claim that the gradually rising sale prices will inevitably surge in the future. At the same time, new apartment supply is becoming scarce, and prices are expected to rise steeply, especially for new homes.
Accordingly, apartments that have entered the sales phase are enjoying significant spillover benefits. This is because a large number of buyers are rushing to purchase before prices rise further. For example, 'Seochungju Prugio The First,' which opened its model house and started sales on the 22nd, is receiving numerous inquiries from buyers. Thousands of people visited the model house daily over the weekend, and inquiry calls have been nonstop.
Seochungju Prugio The First apartments will begin special supply on May 2 and first-priority applications on May 3 through the Korea Real Estate Board's 청약홈 (Chungyak Home). Winners will be announced on May 11, and contracts with winners will proceed from May 23 to 27. For officetels, applications are accepted directly through the Seochungju Prugio The First website. Applications will be accepted on May 5, winners announced on May 11, and contracts held over two days from May 27 to 28.
The low application threshold is also fueling the sales enthusiasm. Since the supply is within the Chungju Enterprise City, applications can be submitted nationwide regardless of residence. Also, as it is a non-regulated area, there are no resale restrictions and fewer loan regulations. For units with exclusive area 85㎡ or less, 60% of winners are selected by lottery, and for those over 85㎡, 100% are selected by lottery, allowing even applicants with low scores to have a chance.
The excellent design of Seochungju Prugio The First is also a strong point. All unit types are designed with four or more bays to enhance openness, and some types feature spacious scenic kitchen windows for added luxury. In particular, some 84㎡ units have a 5-bay, 4-room layout with a 'three-sided balcony' structure that includes balconies on the sides. The 101㎡ type also features a 5-bay, three-sided balcony design to maximize spatial feel. The officetels are mainly designed with four bays and have three rooms and two bathrooms, offering a new layout comparable to apartments.
Additionally, for the first time in Seochungju New City, the complex will be developed as a park-style apartment with no cars on the ground level, creating a pleasant and safe environment. Areas previously occupied by vehicles will be transformed into green spaces with waterside features, playgrounds, and resident exercise facilities, with community spaces for residents on the first floor. Prugio's Clean Air System, which manages five zones where fine dust occurs, will also be applied to maximize comfort.
A sales representative for Seochungju Prugio The First said, "Since the model house opened, visits have steadily continued not only from local demand but also from the metropolitan area and other major cities, restoring the pre-COVID-19 atmosphere," adding, "We have put great effort into product composition and will do our best to make this a new landmark in Chungju."
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