- Basic Construction Costs Rise from September 15... Sale Prices Up 24% Compared to 3 Years Ago
- Spotlight on ‘Yeongtong Prugio Trescence·Pineber’ Not Subject to Construction Cost Increase
As apartment sale prices nationwide are expected to inevitably rise by the end of this year, attention is focusing on new sale complexes where construction cost increases are not applied. This is because the standard construction cost used to calculate the sale price of multi-family housing has risen by 2.53% in just two months.
The Ministry of Land, Infrastructure and Transport announced that it will raise the upper limit of the standard construction cost by 2.53%, effective from the 15th, considering price changes in major construction materials and labor costs. This follows a 1.53% increase in the standard construction cost in July, marking the second increase in two months.
Additionally, a system is in place to adjust prices irregularly when prices of key construction materials such as high-strength rebar and ready-mixed concrete surge sharply. The government allows adjustments if prices of major materials like cement rise by more than 15% three months after the regular announcement in case of raw material price spikes. However, due to limitations in reflecting the recent rapid price increases caused by supply chain disruptions, the system was improved in July to allow for ad hoc announcements within three months.
Industry insiders expect the rise in sale prices to accelerate after September. Even if construction raw material prices stabilize, the structure inevitably leads to higher sale prices. The increase in safety management costs due to the Serious Accident Punishment Act may also affect sale prices. This law, which has been fully enforced since January 27 this year, punishes business owners or management officials if they neglect safety obligations and cause serious industrial or public accidents resulting in casualties.
Meanwhile, Daewoo E&C’s “Yeongtong Prugio Tresence and Yeongtong Prugio Pineber,” launched in Mangpo-dong, Yeongtong-gu, Suwon-si, Gyeonggi-do, recorded an average competition rate of 8.54 to 1 for first-priority applications across the two complexes combined. All housing types met their recruitment quotas, with the highest competition rate reaching 27.34 to 1, gaining great popularity among buyers.
Notably, “Yeongtong Prugio Tresence and Pineber” are highly regarded as prime pick-up complexes less affected by the rise in standard construction costs. Currently, some 105-type units of “Yeongtong Prugio Tresence and Yeongtong Prugio Pineber” are being sold on a first-come, first-served basis with designated building and unit numbers for disqualified and contract-canceled households.
Yeongtong Prugio Tresence (A1 Block) consists of 13 buildings with 796 units, ranging from three basement floors to 24 above-ground floors, while Yeongtong Prugio Pineber (A2 Block) has 11 buildings with 770 units, from three basement floors to 22 above-ground floors. Together, this area is expected to become a large-scale Prugio town with a total of 1,566 units.
Yeongtong Prugio Tresence and Yeongtong Prugio Pineber are close to Mangpo Station on the Suin-Bundang Line, offering excellent access to major metropolitan areas and Seoul. It takes 40 minutes to Pangyo and about 50 minutes to Gangnam via this line, making commuting convenient. Suwon Station, a transfer station for Subway Line 1, Suin Line, and KTX Gyeongbu Line, is also reachable within 10 minutes. Additionally, the Dongtan Urban Railway Mangpo Station is planned.
The Mangpo district, where Yeongtong Prugio Tresence and Yeongtong Prugio Pineber are located, is adjacent to Samsung Digital City Suwon Campus, a representative business complex in Suwon, offering high future value due to its proximity to workplaces. Samsung Digital City houses Samsung Electronics headquarters, Samsung Electronics Research Complex, Samsung Manufacturing Technology Center, and affiliated companies and partners, providing abundant demand from related workers. Nearby are also Samsung Electronics Nanosite Giheung Campus and Samsung Electronics Hwaseong Campus.
Yeongtong Prugio Tresence and Yeongtong Prugio Pineber are subject to the sale price ceiling system, with an average sale price of just over 21 million KRW per 3.3㎡, supplied at a reasonable price compared to surrounding market prices.
A physical model house is currently open, and move-in is scheduled for March 2025.
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