- Rising construction material costs make price increases inevitable in the second half of the year
- 'Incheon Hyosung Harrington Tower Inha' officetel and commercial facilities currently available for sale and immediate move-in
Recently, prices of raw materials such as cement, aggregates, and rebar, as well as labor and land costs, have been rising relentlessly, which is expected to act as a factor driving price increases in the housing sales market in the second half of the year. Accordingly, buyers are turning their attention to pre-sold complexes before the price hikes.
Cement, a representative building material experiencing a sharp price increase, rose by 15.2%. Ssangyong C&E, the leading company in the cement industry, raised the price of Type 1 cement from 78,800 KRW per ton to 98,000 KRW per ton on the 15th of last month in agreement with the Korea Ready-Mixed Concrete Industrial Cooperative Federation. According to the construction industry, ready-mixed concrete companies in the Gyeongin area of the metropolitan region decided to raise ready-mixed concrete prices by 13.1%, from 71,000 KRW per cubic meter to 83,000 KRW starting May 1. The cement industry had previously announced price increases as well.
Rebar prices have also nearly doubled compared to last year. Prices rose from 500,000?600,000 KRW per ton to over 1,000,000 KRW per ton recently. In particular, high-strength rebar used in structural work surged by 30% compared to last year, trading at 1,050,000 KRW per ton in January of this year.
With building material prices accounting for nearly 30% of total construction costs rising daily, the industry views it as inevitable that prices of new residential products launched from the second half of this year will increase.
In fact, the Ministry of Land, Infrastructure and Transport raised the basic construction cost ceiling for apartment buildings per square meter from 1,782,000 KRW to 1,829,000 KRW in March, an increase of 2.64%. Following this, there is a possibility of further adjustments to the construction cost ceiling, prompting sales complexes to compete in rescheduling their plans.
Accordingly, the real estate industry analyzes that a buying atmosphere is spreading before the Ministry of Land raises the basic construction cost in June, which would lead to higher sales prices. Among the currently available housing products, a notable complex is ‘Incheon Hyosung Harrington Tower Inha’ by Hyosung Heavy Industries, located in Yonghyeon-dong, Michuhol-gu, Incheon.
Right next to the complex is Incheon Veterans Hospital, providing optimal conditions for medical service use. Additionally, an emergency room building expansion is planned, which is expected to secure rental demand due to an increase in hospital staff.
Incheon Museum Park began construction in June 2022 and is scheduled to open at the end of 2025, creating a cultural facility connecting Inha University Heidegger Forest - Culture Street (Youth Street) - Museum Park. Furthermore, nearby the complex are green networks such as a lawn picnic area, children’s library, wildflower garden, park walking trails, and the nightscape improvement project of Subong Park, offering a premium living value.
Currently, the old housing maintenance project is actively underway around Jemulpo Station in Incheon, which is expected to simultaneously improve residential and transportation environments, another advantage.
Michuhol-gu, Incheon, where ‘Incheon Hyosung Harrington Tower Inha’ is located, is a region with great future value due to the planned transportation development of the GTX-B line.
Once the GTX-B line opens, it will take about 20 minutes to travel from Songdo, Incheon to Seoul Station. In addition, the Gyeongin Expressway is scheduled for generalization and underground construction, and with the KTX Songdo Station opening planned for 2024, transportation accessibility is expected to improve further.
Living and residential conditions will be dramatically improved, and an increase in new population inflow through enhanced access to Seoul is anticipated, which will likely increase the demand base.
Nearby the complex are cultural facilities such as CGV, a small theater, media center, Haksan Literature Institute, sports center, and gymnasium, and large supermarkets and the Multeombung specialty food street are also close, making daily life convenient.
‘Incheon Hyosung Harrington Tower Inha’ consists mainly of small to medium-sized units, with a total of 628 units ranging from 25 to 84 square meters, in a building with 7 basement floors and 32 above-ground floors.
The officetel offers a total of 16 different types, making it easy to secure a wide range of demand. Built-in appliances and furniture such as washing machines, refrigerators, and built-in wardrobes are provided, and a smart home system is applied. Some units feature terrace designs, allowing residents to configure spaces according to their lifestyles.
Convenience facilities such as coin laundry, fitness center, unmanned parcel lockers, and bicycle storage are also abundantly provided. The circulation path separated from commercial facilities enhances resident security. Currently, a specialized hospital is scheduled to open in the commercial facilities. Additionally, pharmacies, cafes, academies, and convenience stores will be established as daily life-oriented facilities.
Currently, the ‘Incheon Hyosung Harrington Tower Inha’ showroom is operating, and officetel and commercial units are available for immediate move-in upon contract.
Moreover, commercial facilities are being developed within the complex, and special sales are underway for some remaining units owned by the company.
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