- ‘Buseongyeok Unam Firstville’ Secures Stability Through Self-Financing Draws Attention
- Offers Financial Benefits Including Interest-Free Interim Payments to Reduce Buyer Burden
The benchmark interest rate has surpassed 3%, and unsold housing units are rapidly increasing due to the perception that housing prices have peaked. Most homebuyers pay the purchase price through loans when buying a house, and the rising interest rates have made it difficult to bear the interest on these amounts, which is cited as a major reason.
It is not only the applicants who have to bear these high interest costs but also the construction and contracting companies supplying the housing. As unsold units accumulate, it becomes difficult to cover the interest on project loans taken out to carry out housing construction and development projects.
Moreover, the surge in construction costs due to rising raw material prices has reduced expected profits, exacerbating the crisis. If discounted sales occur due to unsold units, profitability will decrease even further.
For this reason, large construction companies with sufficient financial capacity are postponing sales despite bearing financial costs. Among the top 10 construction companies in this year's construction capability evaluation, only 91,469 out of the target 185,039 housing units were sold. As of last month, the housing supply target achievement rate stood at just 47.4%. Only Hyundai Construction (68.9%), GS Construction (61.1%), and POSCO Construction (51.4%) surpassed the 50% achievement rate.
Amid this situation, there is a housing complex that has secured stability by carrying out development and construction with its own capital, dismissing crisis rumors. The project ‘Buseong Station Unam Firstville,’ developed and constructed by W Construction and Unam Construction, is the protagonist.
Buseong Station Unam Firstville is located in the Buseong district of Cheonan, consisting of 6 buildings with a total of 316 units ranging from 2 basement floors to a maximum of 20 floors. All units are the highly preferred 84㎡ type. Construction has already begun, and completion is scheduled for March 2024. Notably, it is the fastest to complete and the first move-in complex within the Buseong district, adding symbolic value.
The complex is being developed with funds sourced independently, so it is reportedly hardly affected by the current market crisis. According to officials, since the project is carried out with its own capital without the need to continuously pay interest on construction loans, it is unaffected by rising interest rates.
Furthermore, Buseong Station Unam Firstville offers interest-free benefits on interim payments to reduce the burden on contract holders. Amid rising interest rates increasing the burden on actual buyers, the developer covers the interest on interim payment loans, easing the financial load on buyers.
The interest-free benefit on interim payments is a service provided by housing developers to buyers. In reality, the interest on interim payment loans does not disappear; instead, the developer pays the interest on behalf of the buyers without charging the amount separately. From the residents’ perspective, they only need to repay the principal. Since large sums of money are involved in housing sales, the interest accrued can be substantial, making this benefit a significant burden for developers.
However, some sales sites have been criticized for offering interest-free interim payments while setting relatively high sale prices to offset the losses incurred by providing such benefits. In contrast, Buseong Station Unam Firstville has undergone price screening by HUG and offers prices lower than the surrounding market, thus avoiding so-called ‘excessive pricing.’
In addition to these benefits and reasonable pricing, the complex boasts a transportation environment with the planned opening of Buseong Station on Line 1.
Buseong Station (planned) is expected to function as a development axis for the northern living area of Cheonan upon opening, raising expectations in the nearby housing market as the project progresses. The station, to be newly established between Jiksan Station and Dujeong Station to improve public transportation convenience for users of the Buseong district urban development project area, will be constructed with a total project cost of 40.3 billion KRW and a total floor area of 2,478㎡. Design work is scheduled to begin in the second half of this year.
The establishment of Buseong Station is expected to enhance transportation convenience for Cheonan citizens, promote public transportation use, and serve as a foothold for future expansion of the metropolitan subway system. It will also significantly improve accessibility to Korea University of Technology and Education and Kongju National University Cheonan Campus, attracting talent and population inflow, while enhancing urban value as a development axis for northern Cheonan and revitalizing the local economy.
Meanwhile, ‘Buseong Station Unam Firstville’ is accepting unit selections on a first-come, first-served basis. With the lifting of the adjustment area designation in Cheonan, resale restrictions have been removed, attracting interest not only from actual buyers but also from investors seeking capital gains.
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