- Rare financial benefits for new complexes during real estate boom... Scarcity expected to increase
- Full interest-free interim payments, fixed first deposit of 10 million KRW at 'Gwangyang Prugio Center Park', inquiries rising
As the enthusiasm for homeownership in the pre-sale market has revived this year, complexes offering financial benefits are gaining renewed attention. Since it becomes difficult to enjoy financial benefits when the real estate market rises, especially in areas with high housing demand, there is a continuing movement to secure pre-sale complexes equipped with such benefits.
In fact, despite the government's regulatory easing, financial benefits are still regarded as a breakthrough to reduce the financial burden amid sharply rising loan interest rates. According to the Bank of Korea, the current domestic base interest rate is 3.5%, which is 2.25 percentage points higher compared to about a year ago (February 2022, 1.25%). Although this upward trend paused last month, there is still a possibility of additional rate hikes within the year.
As a result, demand is focusing on complexes with various financial benefits. For example, the ‘Gwangyang Prugio Center Park’ currently being sold in Gwangyang-si, Jeollanam-do, offers a fixed first installment of 10 million KRW, reducing the initial financial burden for buyers. Typically, a deposit of 10-20% of the sale price is required for a preliminary contract, but here, contracts can be made by paying only 10 million KRW.
Along with this, the full interest-free benefit on intermediate payments lowers buyers’ financial uncertainty. Since the project owner bears the interest, buyers can avoid interest burdens even if additional rate hikes occur in the future.
Meanwhile, industry experts predict that the merit of financial benefits will continue for some time as buyers’ burdens increase due to continuously rising pre-sale prices. According to data from the Housing & Urban Guarantee Corporation (HUG), as of the end of February this year, the average pre-sale price per square meter of private apartments nationwide increased by 9.04% compared to the same month last year. By region, the increase rates were △Other provinces 12.63% △Five major metropolitan cities and Sejong City 11.06% △Capital area 1.02%.
A sales representative of Gwangyang Prugio Center Park said, “In a situation where buyers face heavy financial burdens due to recent interest rate hikes and rising pre-sale prices, Gwangyang Prugio Center Park has significantly reduced financial burdens by offering various financial benefits such as full interest-free intermediate payments and a fixed first installment of 10 million KRW. This year, as the rarity of complexes providing such financial benefits is expected to increase, inquiries from actual buyers and investors are continuously coming in.”
This complex is the first branded apartment introduced in Yonggang District, a new residential hub in Gwangyang. In particular, the Yonggang District area, where the complex is located, is emerging as a new residential town in West Gwangyang with many multi-family housing projects actively underway.
About 4,100 households are planned to be supplied in Yonggang District, including Gwangyang Prugio Center Park, mostly developed as first-tier brand complexes by major construction companies. Additionally, when a large complex of about 6,600 households planned in the nearby Moksung District is completed, the project area is expected to form a large-scale residential town of approximately 10,000 households.
In line with its brand value, it also offers differentiated product features. First, all unit types in Gwangyang Prugio Center Park are designed mainly facing south to maximize views and natural lighting. Also, walk-in closets are provided in all units, and for the 84㎡A and 105㎡ types, ample storage spaces such as a one-sided entrance pantry and an alpha room are offered. Furthermore, each unit will have one storage room located on the second basement floor.
Gwangyang Prugio Center Park is currently operating a model house.
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