Focus on Buseong Station Unam Firstville Resolving Risks through Financial Benefits

- Long-term investment products requiring 3-4 years holding... Must read the economy years later
- Steep rebounds always follow recessions... Overcoming fear is key to growing assets

Despite the decline in all indicators such as prices and transaction volumes due to the real estate market slump, industry experts still regard purchasing newly built apartments as a safe way to grow assets. The consensus in the industry is that apartments are not products aimed at short-term gains but rather investments that respond sensitively to market risks. This is because there have been cases in the past, even during downturns caused by global financial crises, where various risks were overcome and a steady upward trend was achieved.

Experts compare real estate investment to "ginseng farming." Like ginseng, which requires 5 to 6 years of cultivation to produce the best product, it is an investment that demands patience.

From this perspective, it is meaningless for buyers who have currently purchased pre-sale rights to discuss the risks of the current real estate market. The correct investment mindset is to predict the future market and decide for oneself when to sell the owned real estate.

A real estate expert said, "People who purchased during the real estate market slump have succeeded in long-term apartment investment, so for now, fear must be overcome," adding, "In February, the government announced supply measures and stated that the average holding period for housing is about 10 years, so in reality, real estate investment is unaffected by short-term volatility."

In fact, real estate has overcome slight downturns and succeeded in rebounds. According to Real Estate R114, since the 2000s, apartment prices have fallen compared to the previous year only four times after the global financial crisis. Moreover, the decline was minimal, around 3%. On the other hand, when prices rose, they often surged steeply, close to 30%. Even after experiencing downturns, prices rebounded within 2 to 3 years and quickly continued their upward trend.

Some areas have already overcome frozen sentiment and the fever for apartment purchases continues. Especially notable are places with ongoing nearby developments, adjacent industrial complexes ensuring steady demand for live-work proximity, and financial benefits such as interest-free loans on interim payments, which reduce the burden despite rising interest rates. Under such conditions, the risk is very low even in an unstable market, and sufficient profits can be expected if the market rebounds.

One representative complex attracting attention for offering various benefits that reduce risk is "Buseong Station Unam Firstville."

Buseong Station Unam Firstville, developed by W Construction and built by Unam Construction in the Buseong district of Cheonan, features 6 buildings ranging from 2 basement floors to a maximum of 20 floors, totaling 316 units. All units are composed exclusively of the highly preferred 84㎡ size, and construction has already begun with completion scheduled for March 2024.

[Perspective view of Buseong Station Unam Firstville (Provided by: W Construction, Unam Construction)]

Cheonan is emerging as a central hub for future strategic industry development, one of the government's 120 national agenda tasks, ensuring solid future demand.

Industrial complexes such as semiconductor and battery businesses are concentrated here, with Samsung SDI and general industrial complexes developed from Phase 1 to Phase 9, where about 700 companies and 40,000 employees are already working.

Moreover, large-scale investments are planned for each industrial complex. In particular, Samsung Display's Cheonan and Asan plants are expected to receive a total investment of 13 trillion KRW by 2025, with indirect employment effects estimated at 80,000 people over five years, indicating continuous housing demand.

Buseong Station Unam Firstville also offers various financial benefits, including a fixed 5% down payment (first installment) and an option for interest-free interim payment loans (full interest-free on interim payments).

The full interest-free interim payment benefit is especially noteworthy. Assuming an interim loan interest rate of 6% and based on the 84㎡ floor plan sale price of complexes in the Cheonan area with deferred interest payment systems, excluding other factors and applying only simple interest, buyers can save approximately 20 to 40 million KRW in interest expenses. This amount is equivalent to the price of a mid-to-large car, making the difference significant.

An expert said, "In a situation where interest burden due to rate hikes is holding back both suppliers and buyers, it is rare to find complexes offering interest-free benefits to buyers based on their own capital," adding, "Since this benefit involves the developer sacrificing some profit, it may be a rare opportunity in the current market crisis."

Meanwhile, "Buseong Station Unam Firstville" allows first-come, first-served selection of building and unit numbers, and with Cheonan being removed from the regulated area, resale is possible immediately after contract signing.