Single-Homeowners Eye Opportunity as Regulated Areas Lifted... Interest Grows in 'Billibeu Heritage'

On September 26th, some areas in the metropolitan area and all regions except Sejong were removed from the regulated zones, leading to an increase in subscription demand from single-homeowners looking to switch homes. This is because regulations across taxes, loans, and subscriptions have been eased, lowering the threshold for single-homeowners to win housing subscriptions.

The biggest beneficiary of this deregulation is considered to be ‘Daegu Suseong-gu.’ Suseong-gu is known as the Gangnam of Daegu due to its high proportion of wealthy residents and excellent school districts, making it the most preferred area in Daegu.

With the adjustment of the regulated zones, Suseong-gu has transitioned to a non-regulated area and received various benefits. First, the qualification requirement for first-priority subscription has been relaxed from a subscription savings account membership period of over 12 months to just over 6 months. Additionally, the condition that only the head of the household could apply has been removed, allowing household members to apply, and the re-winning restriction has also been lifted.

The most notable change is the eligibility of single-homeowners to apply for subscriptions. Until now, demanders who already owned a home were completely excluded from the subscription market. However, now single-homeowners can apply with first-priority status, and the condition to dispose of the existing home has also been removed.

Moreover, multi-homeowners can now obtain mortgage loans. Previously, if a person owning a home in Suseong-gu wanted to purchase a new home, they had to dispose of the existing home to get a loan, but now loans are possible without selling the existing home.

The loan-to-value (LTV) ratio limits are also eased. Currently, in regulated areas, the LTV limit is 50% for homes priced under 900 million KRW and 30% for those over 900 million KRW, while in speculative overheated districts, it is 40% for homes under 900 million KRW and 20% for those over 900 million KRW. Loans are not available for homes priced over 1.5 billion KRW. In contrast, in non-regulated areas, loans can be obtained up to 70% regardless of the home price.

Meanwhile, the real estate industry expects that although the subscription market is sluggish due to interest rate hikes, demand will increase as Suseong-gu, a highly preferred residential area, transitions to a non-regulated zone. Especially this year, as polarization in the subscription market becomes more apparent, complexes with relatively good locations and excellent product competitiveness are predicted to gain popularity.

Amid this, the supply of luxury apartments for wealthy individuals is anticipated in Daegu Suseong-gu, which has become a non-regulated area, attracting attention from various demanders including single-homeowners.

Shinsegae Construction is supplying ‘Villiv Heritage’ in Suseong-dong 4-ga, Suseong-gu, Daegu Metropolitan City. The complex, consisting of 4 buildings from 2 basement floors to 29 above-ground floors with a total of 146 households, is a luxury apartment built exclusively for the top 1% of wealthy residents in Daegu, with all units being large-scale 50-pyeong (approximately 165.3 sqm) or larger.

Despite being a wealthy district in Daegu, Suseong-gu has lacked housing supply for the wealthy in recent years. In fact, since the move-in of ‘Beomeo-dong Highville’ in 2007, there has been no supply of apartments with luxurious large units that would attract wealthy households. As the luxury complexes in Suseong-gu have now surpassed 10 years since completion, there is a significant waiting demand from those wishing to move to new apartments.

Along with this, as Suseong-gu transitions to a non-regulated area, demanders are expected to fully enjoy the ‘non-regulation effect.’ With expanded subscription qualifications, they can apply for the upcoming luxury apartments in Suseong-gu without disposing of their existing homes. Additionally, Villiv Heritage is located in a non-regulated area and consists entirely of large units, so winners will be selected by a 100% lottery system regardless of subscription points.

Meanwhile, Villiv Heritage will feature various spaces and services befitting its high-end product and the symbolism of the ‘Owners Society.’ The residents-only community, ‘Heritage Club,’ which embodies a healthy daily life and trendy leisure, will include a golf club, a fitness center equipped with top-tier exercise equipment, and a sauna with both hot and cold baths and a Hinoki wood deck.

A concierge service managing residential life will also be introduced. In addition to basic concierge services such as housekeeping, car washing, and laundry, Villiv Life services linked with smartphones will be provided, including facility management, community activation, and various cultural classes. This is expected to further stimulate the movement of wealthy residents in Daegu who have long desired new luxury apartments.

Villiv Heritage is scheduled for occupancy in the summer of 2023 and has the advantage of a shorter period from contract to move-in compared to pre-sale apartments, maintaining strong interest from wealthy residents in Daegu who have been waiting for luxury apartments.