‘Yangpyeong Gongheung3 Humanville Atelier’ Gaining Attention for Its Fixed Interest Rate Benefits

Although house prices are falling nationwide due to recent interest rate hikes and other factors, some opinions suggest that this crisis could actually become an opportunity, drawing attention. Looking at the past real estate market, even if house prices undergo adjustments, they ultimately rise over the long term.

A representative example is the IMF financial crisis. According to the KB Real Estate Monthly Apartment Sales Price Index data, apartment prices nationwide fell by 14.39% in 1998, the year when the IMF crisis was at its peak. However, the downward trend in house prices did not last long. In the very next year, 1999, the nationwide apartment price increase rate recorded 8.25%. In 2000 and 2001, prices rose by 1.38% and 13.69%, respectively, showing a recovery beyond the drop in three years and even greater growth.

The ongoing issue of rising interest rates is similar. Although there are concerns that the recession may deepen, historical statistics show that regardless of whether interest rates fall or rise, house prices have always increased. In fact, when the Bank of Korea's base rate dropped from 2.5% in 2013 to 1.5% in 2015, nationwide apartment prices rose by a total of 7.68% over three years. During the period of rising interest rates from 2016 (1.25%) to 2018 (1.75%), house prices also increased by a total of 5.77%.

Experts advise that since rises and falls in house prices have always occurred in the real estate market but ultimately show an upward trend, it is important to secure prime properties with high future value during such times.

So, which areas are best to choose? It is crucial to secure undervalued locations with many development prospects and high future value during times like these, as they often experience significant increases during the next major upswing.

A real estate market expert also recommended the northern Gyeonggi region. While sales prices are falling nationwide, places where sales prices are rising and premiums over pre-sale prices are increasing are concentrated in northern Gyeonggi. Representative areas include Yeoju, Icheon, and Yangpyeong, known as the northern Gyeonggi troika.

According to data from the Korea Real Estate Board, in September, the nationwide sales price change rate recorded -0.78%, with most regions declining, but Yeoju (0.04%) and Icheon (0.10%) were the only areas in Gyeonggi to see increases. Additionally, in these areas, premiums on pre-sale rights amounting to tens of millions of won are still being formed and traded.

Especially in Yangpyeong, various development prospects are scheduled, making its high future value even more noticeable. First, the Yangpyeong-Hwado section of the Seoul Metropolitan Area 2nd Ring Expressway is set to open at the end of this year, and the Yangpyeong-Icheon Expressway is under construction with a target opening in 2026. Furthermore, the Seoul (Songpa)-Yangpyeong Expressway has passed the preliminary feasibility study and is scheduled to open in 2031, and the expansion project of Local Road No. 88 from Gwangju (Toechon) to Yangpyeong is also accelerating.

A representative from real estate agency A in Yangpyeong-eup said, "Currently, new apartments in Yangpyeong are priced in the 400 million won range, which is rare in the metropolitan area, so inquiries are steady," adding, "It is possible to resell six months after pre-sale, and various financial benefits are also provided, so there are many inquiries from both inside and outside investors."

In fact, 'Yangpyeong Gongheung3 Humanville Atelier,' currently being supplied by Ilsin Geonyeong, offers a fixed interest rate benefit of 3.9% on interim payments. Although market interest rates continue to rise, contract holders can enjoy the fixed rate benefit of 3.9%. If the interim payment loan exceeds the fixed rate, the project owner covers the excess, significantly reducing the burden on buyers. The down payment is also only 5%, not the usual 10%, allowing home purchase without additional payments.

Yangpyeong Gongheung3 Humanville Atelier is being developed with four buildings ranging from one basement floor to 26 floors above ground, totaling 406 units with exclusive areas of 74 and 84 square meters, and is currently conducting first-come, first-served unit and floor designation contracts.