The Top Region for 'Gap Investment' Transactions in the Past 6 Months: Pyeongtaek City...Low Initial Investment Cost
Demand for gap investment is increasing in the apartment market of Pyeongtaek City. As a result, there is growing interest in the news of the new sale of ‘Hillstate Pyeongtaek Hwayang,’ which is being built in an area within Pyeongtaek that stands out for its future value.
According to a domestic real estate big data company, the top region for ‘gap investment sales transactions by city, county, and district’ over the past six months was ▲Pyeongtaek City, Gyeonggi Province, with 189 transactions recorded. This was followed by ▲Hwaseong City, Gyeonggi Province with 149 transactions, ▲Seobuk-gu, Cheonan City, Chungnam Province with 125 transactions, ▲Seongsan-gu, Changwon City, Gyeongnam Province with 121 transactions, and ▲Asan City, Chungnam Province with 118 transactions. Even looking only at January of this year, as of the 27th, Pyeongtaek City in Gyeonggi Province ranked first.
Also, examining the Ministry of Land, Infrastructure and Transport’s actual transaction price data for Pyeongtaek City over the past three months, there were three cases of ‘negative gap’ where the jeonse (long-term deposit lease) price was higher than the sale price. The largest negative gap case appeared in Poseung-eup, West Pyeongtaek, where the difference reached as much as -30 million KRW.
This contract also had a time gap of just over one month between the sale contract and the jeonse contract. Among gap investors focusing on Pyeongtaek City, the West Pyeongtaek area is attracting attention as a place where small-scale investment is possible.
Generally, areas with a high jeonse price ratio attract many gap investors and are considered promising locations. A high jeonse price indicates strong demand for jeonse, which is expected to allow tenants to be found quickly. Additionally, tenants can be secured at prices close to the purchase price, significantly reducing initial investment costs.
Newly launched apartments offered at prices lower than nearby market prices receive even more attention. A local real estate official said, “There is a reason why investors focus on certain areas,” adding, “The West Pyeongtaek area, surrounded by various development benefits such as transportation, tourist complexes, and industrial complexes, is drawing attention with the news of the new sale of ‘Hillstate Pyeongtaek Hwayang,’ which is expected to become a landmark apartment with reasonable sale prices.”
‘Hillstate Pyeongtaek Hwayang,’ built by Hyundai Engineering in the 5BL (block) of the Hwayang District in Pyeongtaek City, Gyeonggi Province, is a large complex consisting of 14 buildings ranging from two basement floors to 31 floors above ground, with a total of 1,571 households and exclusive areas of 72 to 84 square meters. All units are primarily oriented southward.
The Hwayang District, where the complex is located, is called the final piece of the West Pyeongtaek development project and is the largest planned city among privately led urban development projects in Korea. It is planned to accommodate more than 20,000 households and over 50,000 people on a site of approximately 2.79 million square meters.
In particular, ‘Hillstate Pyeongtaek Hwayang’ is situated in the ‘prime location’ within the Hwayang District with the best external accessibility. Located along National Road No. 38, a key road in the southern metropolitan area, it offers easy access to Pyeongtaek Port, nearby industrial complexes, the Yellow Sea Free Economic Zone, and convenient movement to East Pyeongtaek.
‘Hillstate Pyeongtaek Hwayang’ is the largest single-block complex within the Hwayang District. Being a large complex located along the roadside, people using National Road No. 38 will inevitably see the complex frequently. This is why it is expected to become a regional ‘landmark’ apartment.
The landscaping and community facilities, fitting for a ‘landmark’ large complex, are also attractive. More than 40% of the site area is allocated to green spaces to maximize greenery, and a central park of approximately 1,700 pyeong (about 5,615 square meters) is planned in the center of the complex. The central plaza will feature distinctive spaces with trees such as Korean evodia and crape myrtle, and various tree species including cherry blossom trees will be introduced so residents can enjoy different seasonal atmospheres over time. Additionally, an ecological pond and walking trails within the complex are planned.
The community facilities will cover about 1,111 pyeong (approximately 3,670 square meters). Due to its large scale, a variety of facilities will be provided, including sports facilities, hobby activity spaces, and facilities for children, catering to the diverse life cycles of residents.
The brand power of ‘Hillstate’ is also appealing. ‘Hillstate’ is a ‘big brand’ with numerous awards, including first place in the Korea Brand Star multi-family housing category (2022, Brandstock), first place in apartment brand power for three consecutive years (2019?2021, Dr. Apartment), and first place in brand reputation index for 45 consecutive months (2019?2022, Korea Corporate Reputation Research Institute).
The sales conditions are also excellent. Buyers can enjoy a ‘non-regulation premium’ when applying, and capital gains tax exemptions are available simply by holding the property without a residence obligation, with no heavy tax penalties for multi-homeowners. Applications are possible nationwide regardless of residence area, and the maximum loan-to-value (LTV) ratio is 70%, higher than in regulated areas.
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