US 'Giant Step' Seeks Opportunity Amid Real Estate Crisis Theory, 'ePyeonhansesang City Gosaek' Continues to Attract Customer Interest

Amid soaring interest rates, claims that now is actually the optimal time to buy real estate are drawing attention. The argument is that blindly waiting for interest rates to drop could cause one to miss the chance to grow their assets. Accordingly, wise demand that understands the ‘essence’ that rising interest rates merely postpone immediate rewards to the future is expected to bring continued positive momentum this fall, especially centered on prime real estate.

As of August 25, the Bank of Korea raised the base interest rate by 0.25 percentage points from 2.25% to 2.5%. Considering it was only 0.5% in May 2020, the upward trend in interest rates is significant. With the U.S. base rate rising again, further increases are also anticipated. On the 21st, the U.S. Federal Reserve Board (Fed) raised the federal funds rate by 0.75 percentage points at the Federal Open Market Committee (FOMC) meeting. As a result, the U.S. base rate jumped to a maximum of 3.25%.

However, many experts are drawing attention by asserting that “now is actually a chance.” They argue that instead of the simple logic of ‘rising interest rates = falling prices,’ one must examine the complex market situation. They advise carefully analyzing market conditions by region and reading consumer behavior patterns well.

A real estate expert said, “Premature actions that overreact to interest rate hikes are unwise,” adding, “When most buyers or investors who were considering purchasing a home shrink back, an excellent opportunity will arise to secure better living environments or wealth.”

In fact, despite interest rate hikes, housing prices have steadily risen. According to the real estate industry, the base interest rate has experienced about four periods of hikes or maintained high rates since the 2000s. Although there were some fluctuations, all periods ultimately succeeded in trending upward. Even then, those who overcame the ‘high interest rate phobia’ reaped significant benefits.

Currently, the prevailing view is that the impact of interest rate hikes will be less than in the past. A financial official stated, “Considering the national income exceeding $30,000 and other factors, the interest burden is manageable, and the household loan delinquency rate in June was 0.17%, the lowest ever, so the impact on real estate is expected to be limited.”

However, the polarization phenomenon is expected to become more pronounced due to interest rate hikes. According to KB Kookmin Bank, the price gap between the highest-tier housing (5th quintile) and the lowest-tier housing (1st quintile) was 10.1 times as of July, widening from 8.7 times a year earlier. This is analyzed as a large influx of demand toward new housing or emerging residential towns with high residential preference.

Those who understand the ‘essence of interest rates’ are showing high interest mainly in new housing in prime locations. Instead of leisurely waiting for interest rates to fall, they are taking proactive actions immediately. Especially, when financial benefits and favorable conditions are added, the purchase value is considered even higher.

A representative example is DL E&C’s residential officetel ‘e-Pyeonhansesang City Gosaek,’ currently being supplied in Gosaek-dong, Gwonseon-gu, Suwon. It has a total of 430 units with an exclusive area of 84㎡.

Above all, e-Pyeonhansesang City Gosaek offers a 60% interest-free benefit on intermediate payments, significantly reducing interest burdens, and also provides a fixed first deposit of 10 million KRW. Contract holders receive a medical voucher worth 3 million KRW usable at Suwon Deoksan Hospital, attracting attention.

[e-Pyeonhansesang City Gosaek Bird's-eye View]

Located in the future-value-solid West Suwon area, it is also regarded as a ‘prime’ product. Nearby developments include the ‘Shinbundang Line extension,’ ‘Suwon R&D Science Park,’ ‘Tapdong District (advanced industry and R&D center),’ and ‘Starfield Suwon (scheduled for 2023),’ along with residential developments in Gosaek 1 and 2 districts, Dangsujigu, and Hyohangjigu.

Abundant rental demand is also a strength. Right next to the complex is Suwon Deoksan Hospital, a general hospital with 706 beds, scheduled for its first phase opening in the second half of 2024 (457 beds). Within walking distance is the Gwonseon Administrative Town, expected to absorb housing demand from hospital and administrative staff. Furthermore, the construction of an R&D research center within Samsung Digital City’s Suwon plant is under consideration, which is expected to attract demand from Samsung Electronics employees in the future.

Excellent product quality also stands out. All units inside the complex feature a 3-room layout, providing spacious living areas, and all households have access to storage rooms (basement), enhancing residents’ convenience.

Additionally, with e-Pyeonhansesang’s specialized in-complex systems, residents can enjoy safe and comfortable living. Various community facilities are planned, including a screen golf room, fitness center, lounge caf?, private offices, multi-purpose rooms for leisure activities, as well as indoor playgrounds and kids’ stations for young children.

Meanwhile, various information about e-Pyeonhansesang City Gosaek can be found on the official website. Also, customers visiting the housing exhibition center are offered commemorative gifts on a first-come, first-served basis.