- Non-regulated Complexes Benefiting from Spillover Effects Amidst Strict Real Estate Regulations
- Generous Tax Reduction Benefits for Local Apartments with Official Prices Below 300 Million KRW
In the real estate market, 'non-regulated' properties are an indispensable attractive option. As loan restrictions and various tax policies in regulated areas hinder buyers, the non-regulated regional real estate market is enjoying a ripple effect.
In fact, non-regulated complexes are popular in the subscription market. In January, the ‘Pohang Xi Aemyeo’ supplied in Buk-gu, Pohang, successfully closed first-priority subscriptions with a competition rate of 29.76 to 1. Additionally, in July, the ‘Naun Kumho Eoullim Central 2nd Phase’ in Gunsan, Jeonbuk, attracted 742 subscription accounts for 28 general supply units in the first-priority subscription, recording a competition rate of 26.5 to 1.
Demand is increasing especially for local apartments with a publicly announced price below 300 million KRW. This is because the ‘2022 Tax Reform Plan’ announced last month by the Ministry of Economy and Finance included a provision that apartments priced below 300 million KRW in local areas are not counted as housing units. If not counted as housing units, they are excluded from heavy taxation such as capital gains tax and comprehensive real estate holding tax for multi-homeowners.
An industry insider said, “According to this reform plan, the burden on buyers for local apartments has significantly decreased,” and advised, “Since this has become an opportunity to attract more interest to the non-regulated market that was already enjoying a ripple effect, it is strategic to secure the remaining prime complexes.”
Accordingly, buyers’ attention is focused on ‘Geoje 2nd Phase I-Park’ built in Yangjeong-dong and Mundong-dong, Geoje-si, Gyeongnam. Phase 1 consists of 8 buildings from 4 basement floors to 25 above-ground floors, with 636 units ranging from 73 to 103㎡ in exclusive area, and Phase 2 consists of 8 buildings from 2 basement floors to 25 above-ground floors, with 643 units ranging from 73 to 84㎡, totaling 1,279 units, of which 50 units owned by the company are for sale. This complex is in a non-regulated local area and is priced below 300 million KRW in publicly announced price, so it is not counted as housing units.
‘Geoje 2nd Phase I-Park’ has formed a large-scale I-Park brand town with a total of 2,274 units together with the nearby ‘Geoje I-Park’ consisting of 995 units. This has established it as a landmark in the region and it is highly preferred among local residents. The construction was undertaken by HDC Hyundai Development Company, a major construction firm ranked among the top 10 construction companies in the ‘2022 Construction Company Contract Ranking’.
The I-Park brand’s unique floor plan design, considerate of residents, also stands out. The complex is arranged mainly with south-facing units, and incorporates 4Bay and slab-type structures that offer excellent lighting and ventilation. The master bedroom includes a dressing room, and the kitchen is designed with a pantry space, providing ample storage. Most kitchen types are designed in a ‘ㄷ’ (U) shape to reduce work flow. Alpha rooms and variable walls are applied to allow space configurations that suit residents’ lifestyles.
‘Geoje 2nd Phase I-Park’ is also well equipped with living infrastructure for residents. Through Geoje Jungang-ro, residents can enjoy shopping, cultural, and public services such as Hanaro Mart, Geoje Sports Complex, Geoje City Hall, Homeplus, Geobung Paik Hospital, and Geoje Prisoner of War Camp Historical Park.
The natural-friendly residential environment created near the complex is remarkable. Surrounded by mountains and close to Mundong Reservoir, residents can enjoy a healing life near home by walking in the waterside park.
‘Geoje 2nd Phase I-Park’ is currently operating a promotional center.
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