Amid growing uncertainties in the real estate market due to recent loan regulations and a change in government, complexes subject to the price ceiling system for pre-sale prices are attracting attention by recording high subscription competition rates.
The price ceiling system for pre-sale prices is a policy that sets apartment pre-sale prices below a standard amount calculated by combining land costs and construction costs. When this system is applied, pre-sale prices are set lower than nearby market prices, enabling prospective homeowners to purchase their homes at a reasonable price, potentially saving up to several hundred million won compared to surrounding market prices.
In particular, with tightened loan regulations limiting the amount of loans compared to the past, and even if real estate values decline in the future, the lower pre-sale prices allow buyers to secure a greater safety margin compared to high-priced complexes, drawing significant interest from demanders.
For these reasons, complexes subject to the price ceiling system have been enjoying strong popularity in the recent pre-sale market. In fact, looking at the first-priority subscription competition rates in the metropolitan area last year, 13 out of the top 20 complexes, including ‘Dongtan 2 New City Dongtan Station Dietre’, which set a record high, were subject to the price ceiling system. Compared to 4 complexes in 2019 and 9 in 2020, the proportion has been steadily increasing each year.
This popularity continues this year as well. ‘Hillstate Geomdan Well County’, which was pre-sold in April, recorded the highest number of applicants in the metropolitan area this year with about 37,000 applicants for 403 households (excluding special supply). It is analyzed that the application of the price ceiling system, which supplied units at reasonable prices compared to nearby market prices, was a key factor. In fact, the pre-sale price of the 99㎡ exclusive area in this complex is lower than the actual transaction price of the nearby newly built 84㎡ exclusive apartments in February.
Besides this complex, four complexes including ‘e-Pyeonhansesang Siheung Janghyeon First Venue’, ‘Paju Unjeong Dietre Edu Town’, and ‘Shinyoung J-Well Unjeong New City’ are listed among the top 10 metropolitan area subscription competition complexes, proving the high popularity of complexes subject to the price ceiling system.
An industry insider said, “Complexes subject to the price ceiling system are often located in large-scale land development districts and new towns with excellent residential conditions at reasonable prices, so they record high competition rates whenever they are pre-sold,” adding, “Since the government has announced an additional increase in the basic construction cost applied to apartments under the price ceiling system this month, a large influx of demanders is expected to flock to complexes applying the price ceiling system before that.”
Meanwhile, DL E&C opened a cyber housing exhibition hall on the 13th and is currently pre-selling ‘e-Pyeonhansesang Jichuk Centum Garden’ in Jichuk District, Goyang City, Gyeonggi Province, where the price ceiling system is applied. The schedule will proceed with special supply on June 23 (Thursday), first-priority subscription on June 24 (Friday), and second-priority subscription on June 27 (Monday). The announcement of winners will be on July 1 (Friday), and the official contract period will be from July 16 (Saturday) to July 19 (Tuesday) for four days.
e-Pyeonhansesang Jichuk Centum Garden consists of three buildings from basement level 1 to ground level 28, with a total of 331 households of 84㎡ exclusive area. Among them, 278 households excluding 53 relocation support target houses will be offered for general sale, divided by type into △84㎡A 115 households △84㎡B 54 households △84㎡C 109 households. All units are composed of the popular national standard size preferred by actual demanders.
Especially, as a complex subject to the price ceiling system supplied in a large-scale land development district, the average pre-sale price is set at 18.81 million KRW per 3.3㎡ (excluding balcony expansion and additional optional items), making it possible to purchase a home priced from the high 50 million KRW range to the mid-60 million KRW range for an 84㎡ exclusive area.
Additionally, priority supply is applied to metropolitan area residents (30% for those residing continuously in Goyang City for over one year / 20% for those residing continuously in Gyeonggi Province for over six months / 50% for other metropolitan area residents), which is expected to attract high popularity among both local and external demanders.
Moreover, e-Pyeonhansesang Jichuk Centum Garden is located about 500 meters from Jichuk Station, providing convenient access to major Seoul areas such as Jongno, Gwanghwamun, and Gangnam. It also offers easy access to the metropolitan area through road networks such as Samsong-ro, Tongil-ro, and the Metropolitan Area 1st Ring Expressway.
Furthermore, Jichuk Elementary and Jichuk Middle Schools are within walking distance, allowing for easy commuting to school. In 2023, Jichuk 2 Elementary School (tentative name) is scheduled to open, which is expected to alleviate the elementary school overcrowding issue in Jichuk District. Additionally, a commercial district located about 100 meters south of the complex is currently under development, promising convenient access to various commercial facilities upon completion. Large infrastructures such as Starfield, Emart Traders, IKEA, Lotte Mall, and Eunpyeong St. Mary’s Hospital are also nearby.
A sales representative for e-Pyeonhansesang Jichuk Centum Garden stated, “This complex is a pre-construction post-sale project, allowing immediate move-in from October. Given the current uncertainties in the real estate market, it is expected to attract significant interest from demanders as it offers a reasonable pre-sale price compared to nearby market prices,” adding, “Winners of the subscription will enjoy competitive pre-sale prices along with excellent residential conditions in Jichuk District, the e-Pyeonhansesang brand premium, and the benefits of the GTX-A line.”
Meanwhile, the housing exhibition hall for e-Pyeonhansesang Jichuk Centum Garden is operated 100% online. The cyber housing exhibition hall and various information can be found on the official website.
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