Seoul Housing Prices to Rise in Second Half of Year, 'The Grow Seocho' for Sale

As the government announced plans to reform the price ceiling system for pre-sale housing on the 21st, buyers are becoming increasingly active. With a comprehensive rise in pre-sale prices expected following this announcement, many buyers are turning their attention to prime complexes where prices have already been set.

The government plans to revise the price ceiling system to allow essential costs incurred during redevelopment projects to be reflected in additional charges, and to adjust the standard construction cost?which serves as the basis for calculating pre-sale prices?flexibly in response to rapid raw material price increases. Additionally, the Housing & Urban Guarantee Corporation (HUG) will add surcharges for raw material price hikes during high pre-sale price reviews, and the criteria for selecting comparable complexes for market price determination will also be changed.

The Korea Real Estate Board forecasts that as a result of these system improvements, pre-sale prices for new apartments are expected to rise by approximately 1.5% to 4.0% starting from the second half of this year.

Given this situation, buyers' interest is focusing on complexes already supplied to the market. Since pre-sale prices are expected to increase from July, unsold complexes with prices already determined are anticipated to gain price competitiveness.

In particular, with the implementation of the third stage of the Debt Service Ratio (DSR) regulation scheduled from July, June is being regarded as the optimal time for real estate purchases among buyers considering home ownership and real estate investment.

A real estate expert advised, “With pre-sale price increases expected to occur comprehensively starting next month, this month is considered the best time to purchase real estate,” adding, “Securing prime complexes in key areas with high future value, such as Seocho-gu, by carefully considering loan benefits is one way to increase premiums.”

Meanwhile, ‘The Grow Seocho,’ being developed in the Seocho-dong area of Seocho-gu, Seoul, is gaining favorable responses from buyers due to its differentiated investment value. Comprising 221 residential officetels with exclusive areas ranging from 49 to 100 square meters across seven basement floors to 19 above-ground floors, ‘The Grow Seocho’ is constructed by Samjeong Enterprise, which owns the luxury resort ‘Paraspara Seoul’ operated by Shilla Hotels & Resorts of the Shinsegae Group.

‘The Grow Seocho’ is receiving positive attention from buyers as it can serve as an alternative to apartments in the supply-restricted Gangnam area. The officetels are mainly designed as highly preferred two-room units, allowing for versatile use depending on family composition and lifestyle. Some units also feature a three-bay layout that maximizes natural light and ventilation not only in the living room, kitchen, and master bedroom but also in the second room.

A high-end living brand is also applied. The kitchen features the German premium brand Poggenpohl, with Italian luxury brand Baraldi induction cooktops and Italian high-end faucets by Gessi installed throughout the home, adding a touch of luxury.

Concierge services that elevate the living experience will also be provided. From breakfast, laundry, and valet services to secretary and reception services, meticulous care will be offered across various areas to allow residents to experience genuine luxury in their daily lives.

High-end amenities specialized on the top floor also attract attention. A sky community with panoramic views is located on the building’s top floor, where residents can enjoy breakfast and fitness while overlooking Umyeonsan Mountain. Additionally, a private rooftop pool with a 25-meter infinity pool and dining tables will be created. This space will serve as a place for relaxation and parties while enjoying Umyeonsan in the heart of Seocho-dong.

The location conditions are excellent. The complex is surrounded by Umyeonsan Mountain and Seoripul Park, providing a pleasant residential environment, and Seoul Subway Line 3’s Nambu Terminal Station (Seoul Arts Center) is within walking distance. Notably, Seoul High School and Sangmun High School, which ranked first among general high schools producing the most Seoul National University entrants in 2021, as well as the ‘Megastudy Team Project Center’ directly operated by Korea’s leading education company Megastudy, are nearby, attracting buyers interested in Seocho-dong for educational purposes.

Meanwhile, although ‘The Grow Seocho’ is located in Seocho-gu, designated as a speculative overheating district, it offers up to 70% loan-to-value (LTV) on balance payments and is unaffected by the second stage of the DSR regulation. The model house is currently operating by appointment only.