Complexes with ‘Location’ and ‘Brand’ Emerging as Landmarks During Market Recovery... Expect Capital Gains
As interest rates rise and the housing market remains cautious, complexes with excellent locations and strong brands continue to attract high demand. These complexes are expected to become landmark properties leading local market prices once the market recovers.
In fact, the base interest rate has been steadily increasing. The base rate was 1.25% in January this year, rose to 1.5% in April, 1.75% in May, 2.25% in July, and surged to 2.5% in August. Then, in October, the Bank of Korea took a big step by raising the base rate by 0.5 percentage points at once, pushing it up to 3%.
As interest rates rise, concerns about an economic downturn increase, intensifying the sorting of good and bad properties in the real estate market. Especially, complexes with excellent locations and strong brands still attract high interest from buyers because they are expected to become landmarks and generate capital gains when the market recovers.
For example, ‘Hillstate Seocheon,’ launched in 2014 in Yongin, Gyeonggi Province, faced a sluggish market at the time, receiving 1,395 applications for 747 units (excluding special supply), thus unable to avoid the label of unsold units. However, as the real estate market recovered in the second half of 2016 when the complex was occupied, it began to emerge as a landmark.
According to the Ministry of Land, Infrastructure and Transport’s actual transaction price data, the 84㎡ exclusive area unit of Hillstate Seocheon was traded at 433 million KRW in September 2017 after occupancy, showing a premium of over 80 million KRW compared to the original sale price. Subsequently, it was traded at 480 million KRW in December 2018, 525 million KRW in December 2019, and 760 million KRW in June this year, forming a premium more than double the original sale price.
A real estate expert said, “As interest rates rise, buyers tend to focus only on prime complexes where they can enjoy capital gains when the market recovers,” adding, “Changes are expected to begin in the metropolitan area where housing demand is high once the market recovers, so it is important to carefully find complexes with excellent locations and brand power.”
Meanwhile, ‘Hillstate Tapseok,’ which boasts an excellent location and a major brand, is attracting attention from buyers. The complex is located in Yonghyeon-dong, Uijeongbu, Gyeonggi Province, consisting of five buildings ranging from three basement floors to a maximum of 39 floors above ground, with a total of 636 units of preferred exclusive areas from 59 to 84㎡.
‘Hillstate Tapseok’ applies various specialized designs befitting the reputation of the ‘Hillstate’ brand. All units mainly feature a 4Bay plate-type layout, providing excellent lighting, ventilation, and openness. Storage spaces such as dressing rooms (in some types) and pantries (in some types) are provided throughout the home to maximize space utilization. Additionally, diverse community facilities such as a small library, daycare center, care center, senior citizens’ center, fitness center, GX room, shower room, and Moms Station are planned.
Educational conditions are also excellent. Solmoe Elementary and Solmoe Middle Schools are about 600 meters away in a straight line, and Dongguk University High School is within approximately 100 meters. After-school academies near Eoryong Station and Songsan Station are also conveniently accessible.
Living infrastructure is abundant. Large marts and cultural facilities such as Shinsegae Department Store, E-Mart, Costco, Homeplus, and Lotte Cinema are nearby, and the living infrastructure is expected to improve further once the nearby 306 Supplementary Unit site urban development project is completed.
There are many transportation development plans around the complex. Residents will be able to use Tapseok Station on the Seoul Subway Line 7 extension (scheduled to open in 2025), and the GTX-C line connecting Yangju Deokjeong, Uijeongbu, Seoul Samsung Station, and Suwon over 74.8 km (scheduled to open in 2027) is also nearby. The nearby Metropolitan Area 2nd Ring Expressway (scheduled to open in 2023) is also planned. In addition, residents can conveniently move around Uijeongbu city using Simin-ro, and access the Metropolitan Area 1st Ring Expressway and Dongbu Expressway via Uijeongbu IC, utilizing the wide-area road network.
As an apartment complex adjacent to Chudong Park, it offers a pleasant residential environment. Chudong Park, about 650,000㎡ in size?approximately 93 times the size of a soccer field?is a ‘mountainous park’ that preserves the existing terrain as much as possible, allowing residents to enjoy the beauty of all four seasons through various walking and hiking trails. Additionally, views of nearby Suraksan and Dobongsan Mountains are secured (except for some units).
Meanwhile, ‘Hillstate Tapseok’ is currently conducting first-come, first-served unit selection contracts. Unlike general sales, no subscription savings account is required, and anyone aged 19 or older can sign a contract regardless of residence area or home ownership status. Buyers can directly select their desired building and unit number, and the pre-sale rights obtained through first-come, first-served contracts are not counted as housing units, allowing various tax benefits.
‘Hillstate Tapseok’ is operating a model house.
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