Declining Loan Interest Rates... Spotlight on 'Hillstate Pyeongtaek Hwayang'

- Base Interest Rate Held Steady at 3.50% for Third Consecutive Time, Major Commercial Banks' Mortgage Loan Variable Rates Drop to 3% Range
- 'Warmth' Returns to Pre-sale and Sales Transaction Markets

Recently, the benchmark interest rate has been frozen for three consecutive times, and the lower end of mortgage loan interest rates at major commercial banks has fallen to the 3% range for the first time in about 1 year and 3 months. As the purchasing power of buyers looking to own a home is expected to revive, the ‘Hillstate Pyeongtaek Hwayang’ currently being sold in the Hwayang district, considered an undervalued promising area, is attracting attention.

The steady rise in the benchmark interest rate has slowed down. On the 25th of last month, the Bank of Korea decided to freeze the benchmark interest rate for the third consecutive time. As a result, the rate remained at around 3.50% following February and April, leading to opinions that we may have entered a full-fledged ‘interest rate freeze period.’

Loan interest rates have shown a downward trend. As of the 2nd, the lower end of variable mortgage loan interest rates at major commercial banks dropped to the 3% range annually, and the interest rates on jeonse (long-term deposit) loans also fell to the 3% range. This is interpreted as reflecting market expectations of the end of ‘tight fiscal policy.’

This interest rate trend is expected to influence the housing sales market in conjunction with the government’s ‘1.3 Measures’ announced earlier this year.

In the 1.3 Measures, the government stated its intention to induce a ‘soft landing of the real estate market’ through comprehensive deregulation. The measures fully lifted regulations on all metropolitan areas except the three Gangnam districts (Seocho, Gangnam, Songpa) and Yongsan district, and also announced plans to ease resale restrictions and abolish the mandatory residence requirement in regulated areas. Although the mandatory residence requirement has yet to pass the National Assembly, the resale restriction period has already been significantly shortened as of April.

In fact, the previously sluggish real estate transaction market has recently shown rapid vitality.

According to the Seoul Real Estate Information Plaza (as of May 5), the number of sales and occupancy rights transactions in Seoul in May reached 50 cases, which is ten times the amount compared to the previous year. The total transaction volume for the entire first quarter of this year (50 cases) occurred within just one month in May, and considering that the transaction reporting days in May are still remaining, the numbers are expected to increase further.

The warming of the transaction market was also observed outside Seoul. According to the Korea Real Estate Board, the number of apartment sales transactions in the metropolitan area from January to April this year totaled 48,948 cases, a remarkable increase of about 48.4% compared to the same period last year. Gyeonggi-do, where the most transactions occurred, accounted for about 63.6% of the total metropolitan transactions with 31,127 cases, an increase of 8,452 cases compared to the previous year.

A sales official stated, “Considering that buyers place great importance on interest rate trends when purchasing homes, the current market situation can be seen as a ‘favorable breeze.’ Although it is still difficult to say the market has fully revived, the fact that the breeze is beginning to blow now can be viewed as a good opportunity to secure a home in undervalued promising areas in the metropolitan area.”

Among these, the ‘Hillstate’ large-scale apartment complex available in the 300 million KRW range in the metropolitan area is attracting attention. It is the ‘Hillstate Pyeongtaek Hwayang’ currently being sold in Pyeongtaek-si, Gyeonggi-do.

The complex is located in the Hwayang district of Pyeongtaek-si, Gyeonggi-do, and is constructed by Hyundai Engineering. It has currently entered the first-come, first-served building and unit designation contract phase, and sales are progressing smoothly. It is the largest single BL (block) in the Hwayang district and the first ‘Hillstate’ brand apartment there.

For the first-come, first-served building and unit designation contract, anyone aged 19 or older can immediately select and contract their desired unit regardless of their residential area, home ownership status, or subscription savings account possession.

‘Hillstate Pyeongtaek Hwayang’ starts at a sale price in the 300 million KRW range. The exclusive areas of 72㎡ and 76㎡ are priced in the 300 million KRW range across all floors, and the 84㎡ unit, known as the ‘Gukpyeong (National Standard Size),’ starts from the high 300 million KRW range. Despite rising material costs pushing prices up, it is possible to enter the metropolitan area with prices in the 300 million KRW range.

The complex will be built with 14 buildings ranging from 2 basement floors to 31 above-ground floors, totaling 1,571 households. By exclusive area, there are ▲72㎡ 149 households ▲76㎡ 76 households ▲84㎡A 929 households ▲84㎡B 315 households ▲84㎡C 102 households. Move-in is scheduled for March 2026.

This location boasts outstanding pleasant living conditions even within the Hwayang district. More than 40% of the site area (about 9,000 pyeong) is allocated to landscaping, with a central park of about 1,700 pyeong featuring various tree species within the complex, as well as an ecological pond and walking trails planned inside. Additionally, a neighborhood park of about 4,270 pyeong is adjacent to the east side of the complex.

In the center of the complex, a ‘big-scale’ community facility of about 1,100 pyeong will be established. Due to its large size, various facilities will be included, designed to accommodate the diverse life cycles of residents. In addition to sports facilities, hobby activity spaces and facilities for children are planned. To support the increasingly important ‘work-life balance,’ a golf practice range, a G.X room, and large fitness facilities to help maintain health and relieve stress will also be introduced, attracting many prospective buyers.

The contract terms are a fixed deposit of 10 million KRW (first payment), 60% of the intermediate payment interest-free in full, and 30% for the balance.

The first-come, first-served building and unit designation contract is conducted at the ‘Hillstate Pyeongtaek Hwayang’ model house.