Real Estate Recovery Hopes 'Rising'... April New Sale of 'Eco Delta City Daesung Berhill'

Expectations for recovery in the real estate market are growing due to the government's deregulation measures and the announcement of interest rate stabilization. Amid renewed interest in newly launched housing complexes, supply projects in Busan are drawing attention.

On January 3rd, the government announced various deregulation measures to facilitate a soft landing in the housing market. The obligation to dispose of existing homes when applying for new housing was abolished to activate transactions, and tax regulations on multi-homeowners were also eased. In particular, with the planned amendment to the Housing Act Enforcement Decree (scheduled for March), the abolition of the residence requirement and significant relaxation of resale restrictions are expected to potentially change the atmosphere of the nationwide sluggish pre-sale market, attracting close attention.

In fact, reflecting the government's large-scale deregulation expectations, unsold inventory in the market is being depleted. Projects such as ‘Riversen SK View Lotte Castle (total 1,055 households)’ in Jungnang-gu, Seoul, ‘Jangwi Xi Radiant (total 2,840 households)’ in Seongbuk-gu, Seoul, and ‘Dongtan Eoullim Familier·Summa Desiang (total 1,256 households)’ in Hwaseong-si, Gyeonggi Province, have announced complete sales in first-come, first-served sales.

Additionally, the Bank of Korea’s decision to hold the base interest rate steady also played a role. On February 23rd, the Bank of Korea kept the base rate at 3.5% per annum, halting the upward trend that had continued for about a year and a half. Recently, loan interest rates at commercial banks have also been gradually decreasing, bringing renewed vitality to the real estate market.

As interest in the real estate market recovers, the Busan area is gaining attention. According to Real Estate R114, Busan recorded an average subscription competition rate of 37.4 to 1 last year despite the real estate downturn, ranking first among the 17 metropolitan cities and provinces nationwide. This appears to have benefited significantly from the deregulation effect following the lifting of the adjustment area designation on September 26th last year.

The subscription performance of recently launched complexes is also notable. In November last year, ‘Eco Delta City Prugio Center Park’ supplied in Gangseo-gu, Busan, attracted 6,221 subscription applications for 148 households (excluding special supply), recording an average competition rate of 42 to 1. Subsequently, in the non-priority subscription held last month, it recorded an astonishing competition rate of 98 to 1 and succeeded in complete sales this month.

The subscription enthusiasm in Busan continues this year as well. ‘Eco Delta City Prugio Lin,’ subscribed to in February, showed a double-digit average competition rate of 11 to 1 in the first-priority subscription results.

Meanwhile, attention is gathering from buyers for ‘Eco Delta City Daesung Berhill,’ which will be built in April as the largest eco-friendly waterfront city in Busan. It will be supplied at a more reasonable price than the existing complexes in Eco Delta City, and is expected to benefit from the policy easing resale restrictions (public land resale restriction from 3 years to 1 year, amendment to the Housing Act Enforcement Decree planned).

Eco Delta City Daesung Berhill consists of 16 buildings, ranging from basement level 1 to 21 floors above ground, with a total of 1,120 households and exclusive areas of 84 to 106 square meters.

Meanwhile, the Eco Delta City Daesung Berhill model house is currently open to the public.