"Reduce Interest Burden"... 'Eunpyeong Xi The Star' Lowers Buyer Burden with Interest-Free Interim Payments

- Year-end mortgage interest rates may reach 8% per annum... Attention on complexes with interest-free interim payments
- Full options including system air conditioners and Objet refrigerators provided by default attract attention

[Photo by 'Eunpyeong Xi The Star' Model House]

Recently, demand has been concentrated on complexes offering financial benefits such as interest-free interim payments in the pre-sale market. As interest rates rise sharply, consumer financial burdens increase, leading to greater attention on complexes with lower interest burdens.

Currently, the domestic base interest rate stands at 2.25%, which is a 2% increase compared to July 2021 (0.5%) within a year. During this period, the Bank of Korea decided on seven rate hikes, and in July, it implemented a 'big step' by raising the rate by 0.5% at once for the first time in history.

This trend of interest rate hikes is expected to continue. Following the U.S. Federal Reserve's 'giant step' on the 22nd and the increasing possibility of an additional 1.25 percentage point base rate hike within the year, the Bank of Korea is also expected to implement another 'big step' in the remaining two Monetary Policy Committee meetings this year.

Consequently, pressure on loan interest rates is intensifying. With a sharp rise in the base rate anticipated, there are forecasts that the upper limit of mortgage loan interest rates, which have surpassed 6% annually, could exceed 8% by the end of this year. In fact, as of the 22nd, the fixed (hybrid) mortgage loan interest rates of the five major commercial banks?Kookmin, Shinhan, Hana, Woori, and Nonghyup?ranged from 4.38% to 6.609%, with the upper limit rising nearly 0.5 percentage points within a month.

An industry expert stated, “As the high-interest era fully begins, interest-free interim payment benefits are becoming an important option for homebuyers to reduce interest costs,” adding, “Since these benefits allow flexible responses to interest rate hike risks and are less affected even during real estate adjustment periods, the popularity of complexes offering financial benefits such as interest-free interim payments will increase further.”

Accordingly, in the pre-sale market, demand concentration based on the presence or absence of interest-free interim payments is becoming prominent. In the western area of Seoul, ‘Eunpyeong Xi The Star’ is attracting attention. Constructed by GS Engineering & Construction, it offers rare financial benefits in the popular Seoul area.

First, it implements an interest-free interim payment plan along with a fixed contract deposit of 10 million KRW for the first payment. Since the project entity bears the interest incurred on interim payment loans, the loan burden remains low even amid a clear trend of rising interest rates.

Additionally, it provides full options free of charge, effectively reducing the sale price. Each unit comes standard with premium appliances such as a system air conditioner, next-generation ventilation-type air purification system Sysclean, Objet refrigerator, dishwasher, microwave oven, hybrid cooktop, as well as European large porcelain tile art walls, coffered ceilings, and indirect lighting.

Moreover, each unit is designed with a dressing room, and built-in wardrobes can be added free of charge, offering ample space utilization. The 49㎡ exclusive units feature a 3BAY layout in a slab-style design, typically found in larger units, with two bathrooms, an island kitchen, and a spacious living room. The 84㎡ exclusive units have a 4BAY layout with a U-shaped kitchen and a two-sided open living room design, promising pleasant natural ventilation and lighting.

Located in the original downtown area of Eunpyeong-gu, the surrounding infrastructure is well established. Public transportation includes walking access to Eungam Station and Saejeol Station on Subway Line 6. Saejeol Station is expected to directly benefit from the opening of the Western Line (Saejeol Station?Yeouido?Seoul National University Entrance) and the Goyang-Eunpyeong Line (Saejeol Station?Changneung New Town?Goyang City Hall). Accessibility to Yeonsinnae Station, where the GTX-A line will open, is also good.

Emart Eunpyeong Branch and Hanaro Mart are located within approximately 1 km of the complex, providing convenience for daily life, and Starfield Goyang and IKEA Goyang can be easily accessed by car. Prestigious private schools such as Sangshin Elementary, Deoksan Middle, Soongsil High, and Shinjing Science and Technology High, as well as Chungam Middle and Chungam High, are nearby, offering an excellent educational environment. According to the Seoul Metropolitan Government's special ordinance, an education-specialized street is planned to be developed at Sinsa Samgeori. Once completed, educational conditions will improve significantly.

‘Eunpyeong Xi The Star’ is being developed in Sinsa-dong, Eunpyeong-gu, Seoul, with a total of 312 units, including 262 small housing units of 49㎡ exclusive area and 50 officetel units of 84㎡ exclusive area, in buildings ranging from four basement floors to 25 above-ground floors. The officetel units are also available for resale, and contracts specifying building and unit numbers are currently being accepted on a first-come, first-served basis.

Meanwhile, the model house for ‘Eunpyeong Xi The Star’ is currently open.