High Interest Rates and Falling House Prices... KCC Construction's 'Misa Anello Switzen' Secures Financial Benefits Early

As high interest rates and declining housing prices continue, buyers remain cautious, but there is a growing view that now is actually the right time to purchase a home or invest. Accordingly, interest is increasing in newly launched housing complexes where buyers can take advantage of various financial benefits to secure their spot early.

Typically, interest-free installment payment benefits during periods of rising interest rates are considered attractive conditions. This is because the developer or construction company bears the interest costs, reducing the interest burden on the contract holder. Since home purchases often involve loans and installment payments account for 50-60% of the total sale price, this burden is unavoidable.

Moreover, while many buyers wait for the right timing to buy amid falling housing prices during interest rate hikes, newly launched housing complexes may be a more reasonable choice than resale properties. Simple resale properties are not pre-sale complexes, making loans difficult and purchases challenging even if prices are low. In contrast, new pre-sale complexes allow installment loans, making financing relatively easier, and when financial benefits are also provided, they reduce the financial burden of purchasing a home.

During such times, investment demand tends to be passive due to vague concerns about falling housing prices, but from a long-term perspective, there is also an opinion that early acquisition is advisable. Historical real estate market statistics show that housing prices rose during periods of increasing interest rates.

According to KB Real Estate statistics, during four interest rate hike periods in Korea since the 2000s, housing prices rose by as much as 20% during the first period (October 2005 to August 2008, 2%P increase), 5.3% during the second period (July 2010 to June 2011, 1.25%P increase), and 3.3% during the third period (November 2017 to November 2018, 0.5%P increase). Since August last year until now is the fourth period of increase, it may be somewhat premature to predict an unconditional decline in housing prices.

Accordingly, KCC Construction’s ‘Misa Anello Switzen,’ which offers interest-free installment payments and fixed contract deposits, is currently conducting first-come, first-served contracts for remaining units.

‘Misa Anello Switzen,’ a residential officetel launched by KCC Construction in the Mangwol-dong area of Hanam-si, Gyeonggi-do, consists of 449 officetel units ranging from 21 to 44㎡ in exclusive area across 7 basement floors to 22 above-ground floors, along with neighborhood living facilities.

The complex already made a strong impression on buyers by successfully closing all unit types in the subscription application held earlier this month, thanks to its ultra-prime location near Misa Station and differentiated excellent product features, and it also attracts attention with various financial benefits.

Currently, the initial contract deposit is set at a fixed amount of 10 million KRW for the first payment, reducing the initial financial burden, and interest-free benefits are provided for installment payments.

Additionally, it plans to offer a fully furnished system that has not been seen in officetels in the Hanam area before, including a 4-door Bespoke refrigerator, built-in dishwasher, and wall-embedded shower fixtures, providing not only differentiated products but also cost-saving effects.

The complex also boasts excellent transportation conditions. It is located in the ultra-prime area near Misa Station on Subway Line 5, with the planned extension of Line 9 (Gangdong-Hanam-Namyangju Line) nearby, which is expected to bring additional benefits. For car users, it offers a fast transportation network with easy access to Olympic-daero and Gangbyeonbuk-ro.

Abundant infrastructure is also notable. Nearby are Misa Lake Park, spanning approximately 60,000 pyeong, Misa Kyungjeong Park, Misa Hangang Park, and a 34km-long bicycle path, allowing residents to enjoy a pleasant leisure lifestyle. Furthermore, a car-free street extending from nearby Misa Station and large complex shopping malls such as E-Mart, Starfield Hanam, and IKEA provide a one-stop living environment.

The product features are excellent as well. The residential officetel consists of a total of 449 units in five types: ▲Type A with 21㎡ exclusive area (20 units), ▲Type B with 36㎡ (19 units), and ▲Types C to E ranging from 41 to 44㎡ (410 units), focusing on units over 40㎡, which are rare in Hanam-si, Gyeonggi-do.

All units will feature a wide attic structure maximizing space utilization, KCC Construction’s unique specialized design, and clean features such as anti-virus wallpaper and anti-bacterial door levers, enhancing living hygiene and enabling a cleaner lifestyle.

The neighborhood living facilities within the complex are expected to attract abundant demand. The complex is located right in front of Exit 6 of Misa Station on Subway Line 5, adjacent to bus stops and pedestrian paths, which is expected to draw a large flow of people. Additionally, since many households reside around the commercial facilities, the demand base is expected to be rich, enhancing competitiveness.