Buying Sentiment Stirs with Deregulation... 'Indeogwon Xi SK VIEW' Contract Rate Soars

The real estate market in the Seoul metropolitan area, including Seoul, is experiencing heightened expectations as the 1.3 real estate measures have been announced consecutively following last year. It is forecasted that the previously sluggish pre-sale market will also gain momentum due to the easing of regulations across all real estate sectors such as loans, taxes, and subscription.

According to the Korea Real Estate Board, the nationwide apartment sales supply-demand index for the first week of January (as of the 2nd) rose to 71.5, up 1.3 points from the previous week (70.2). This marks the first time in eight months (35 weeks) since the first week of May last year (94.1) that the nationwide apartment sales supply-demand index has turned upward. The metropolitan area sales supply-demand index also increased by 1.1 points from 65.0 to 66.1. Specifically, Seoul rose from 63.1 to 64.1, Gyeonggi from 66.2 to 67.2, and Incheon from 64.6 to 66.1, each increasing by 1 to 1.5 points.

The pre-sale market is also showing signs of improvement. The ‘Jangwi Xi Radiant’ in Jangwi-dong, Seongbuk-gu, Seoul, which completed official contracts in December last year and recently finished contracts with preliminary winners, appears to have recorded a higher contract rate than expected. The ‘Olympic Park Foreon’ in Dunchon-dong, Gangdong-gu, currently in the official contract phase, is also expected to achieve results beyond expectations. It is reported that some winners who initially intended to forfeit their contracts have changed their minds and are actively signing contracts, and ‘tteotdabang’ (speculative pre-sale rights brokerage offices) have even appeared near Olympic Park Foreon.

[Indeokwon Xi SK VIEW Perspective Rendering Photo by GS Construction]

Earlier, the Indukwon Xi SK VIEW apartments in Naeson-dong, Uiwang-si, Gyeonggi-do, which were pre-sold in September last year, have recently seen a significant increase in contract rates, with units such as 74㎡B and 74㎡C selling out completely.

This reflects the market’s anticipation following the government’s announcement of various regulatory easing measures since the end of last year to prevent a hard landing in the real estate market.

In fact, Indukwon Xi SK VIEW was removed from the speculative overheating zone and regulated areas in November last year, reducing burdens related to loans and taxes. Acquisition tax surcharges were excluded, and the mid-term loan ratio increased from 40% to 60%.

Following the real estate measures announced earlier this month, the mid-term loan guarantee price standard set at 1.2 billion KRW was abolished, allowing mid-term loans without construction company guarantees for units such as 99㎡ and 112㎡. Most importantly, the resale restriction period has been shortened from after ownership transfer registration to within one year. Since the winner announcement date was September 28 last year, even if contracts are signed now, resale of pre-sale rights will be possible by September 28 this year.

A sales official stated, “As soon as the lifting of the regulated area was announced, inquiries about loans continued, and recently, visits to the model house have increased significantly. Unsold units, especially in good buildings and units, are quickly being sold out. Although the pre-sale market was at its worst last year and did not receive much attention, the location and product of Indukwon Xi SK VIEW are among the best in the Uiwang area.”

Indukwon Xi SK VIEW is a large complex consisting of 20 buildings with a total of 2,633 households, ranging from 4 basement floors to a maximum of 29 floors above ground. Considering the surrounding landscape and location characteristics, the exterior was designed to stand out, and instead of placing parking lots above ground, the complex features themed gardens and children’s playgrounds blending green spaces and resting areas throughout the site. Community facilities include a multipurpose gymnasium, multipurpose lounge, fitness center, indoor golf practice range, GX room, Pilates, indoor playground, cultural lecture room, and saunas (male and female).

The metropolitan area’s first ring expressway, Gwacheon-Bongdam urban expressway, and the 2nd Gyeongin expressway are well-developed, allowing convenient access throughout the metropolitan area, including Seoul’s Gangnam area. Nearby Indukwon Station is included in the GTX-C line plan, and double-track railways connecting Indukwon and Dongtan (Indong Line) and Wolgot to Pangyo (Wolpan Line) are also planned.

Adjacent to Pyeongchon New Town, it is easy to access shopping facilities, banks, hospitals, and large marts. Naeson Elementary, Baegun Elementary, Galmoe Middle, and Baegun High School are within walking distance, and the Pyeongchon academy district, considered the largest in southern Gyeonggi Province, is nearby. Moraksan Mountain, Baegun Park, Hill Park, Uiwang National Sports Center, and Naeson Sports Park are also close, providing a pleasant living environment. The model house is currently open, and move-in is scheduled for May 2025.