Preference for a Smart Real Estate Property Amid Inflation Rises, Interest in 'Hillstate Yangju Okjeong Patio Foret' Increases

As recent forecasts suggest prolonged high inflation, the real estate market is accelerating its preference for a ‘smart single property.’

In an inflationary era, the value of currency relatively declines, making it advantageous to hold tangible assets rather than cash. Even if bank deposit interest rates rise due to increased interest rates, they remain lower than the inflation rate, causing the value of cash to decrease by the difference between the inflation rate and the deposit interest rate.

In particular, real estate is a representative tangible asset that is less affected by inflation. Except for strong external factors such as financial crises, housing prices have trended upward over the past 40 years. Continuous development drives up land prices, and as land prices rise, building values also increase. Of course, not all real estate appreciates in value. While there are fluctuations depending on location, it is considered a safe asset because it maintains at least a minimum value in any case.

Experts analyze that during such inflationary periods, demand will concentrate on ‘smart single properties’ that both protect assets and steadily increase them at the rate of inflation. A smart single property refers to a residence located in a prime area equipped with transportation, education, convenience facilities, and development prospects, satisfying both investment and living needs.

Especially in the metropolitan area, the average sale price rose 28% in April this year compared to April last year, while the average sale price of apartments in provincial areas increased by 17.6%, showing a higher rate of price increase in the metropolitan area than in provincial regions. Considering various factors such as taxes and growth potential, purchasing a smart single property in the metropolitan area with a higher price increase rate is better than owning two houses in provincial areas.

Moreover, recently announced policies are further fueling the preference for smart single properties. The government has announced plans to lower the fair market value ratio for property tax on single-homeowners from 60% to 45%, reduce the fair market value ratio for comprehensive real estate tax from 100% to 60%, and expand the tax exemption threshold from 1.1 billion KRW to 1.4 billion KRW. As benefits for single-homeowners increase, the importance of smart single properties is also rising.

An industry insider said, “As high inflation lowers the value of currency, buyers are focusing on smart single properties that can steadily increase their assets. These real estate assets can appreciate beyond the inflation rate, and recent policies are easing taxes for single-homeowners, so the popularity of smart single properties is expected to continue for some time.”

As the value of cash declines due to inflation and the importance of real estate as a safe asset rises, ‘Hillstate Yangju Okjeong Patio Foret,’ being developed in the Okjeong district of Yangju New Town, Gyeonggi Province, is attracting attention as a smart single property and is successfully proceeding with contracts.

Hillstate Yangju Okjeong Patio Foret is a block-type detached housing complex located in the Okjeong district of Yangju New Town, Gyeonggi Province, consisting of 809 households with three types of exclusive areas: 84㎡C, 84㎡I, and 84㎡L. It features a structure with 1 to 3 floors above ground including an attic, and community facilities spanning from basement level 1 to ground level 2.

This complex is considered a perfect smart single property as it is a ‘block-type detached housing in the city center’ located in the heart of Okjeong district. It is surrounded by Dokbawi Park, Seondol Park, and Okjeong Ecological Forest Park, with Okjeong Central Park and Okjeong Sports Park nearby. Elementary, middle, and high schools are located nearby, and the academy district in the central commercial area within 700 meters offers an excellent educational environment. The central commercial district includes a cinema and various restaurants and convenience facilities. Large marts and shopping malls such as E-Mart, Lotte Mart, and LF Square are also close, providing high living convenience.

Near the complex, the subway Line 7 Okjeong Central Station (planned) is scheduled, and the GTX-C line (planned), connecting Yangju Deokjeong through Samsung Station to Suwon, passes near Deokjeong Station on Line 1, greatly improving future railway access to Gangnam.

‘Hillstate Yangju Okjeong Patio Foret’ is currently operating a model house and accepting first-come, first-served unit designation contracts.