SH Corporation Discloses Sale Costs and Profit Margins
Promotes 'Seoul-style Supervision' to Ensure Construction Quality
The sale cost of Songpa-gu Wirye New Town A1-5BL, supplied by Seoul Housing and Communities Corporation (SH Corporation), was calculated at 12.36 million KRW per 3.3㎡.
On the 8th, SH Corporation disclosed 71 items including the sale cost and profit margin of Wirye A1-5BL, which was sold in November 2020.
Wirye New Town A1-5BL sold a total of 1,282 households, with an average sale cost of 12.361 million KRW per 3.3㎡ and a sale price of 19.894 million KRW per 3.3㎡.
The sale cost consists of the land development cost, which is the cost of land preparation, and the construction cost, which is the building cost. The average development cost of Wirye A1-5BL was 5.349 million KRW per 3.3㎡, and the construction cost was 7.012 million KRW per 3.3㎡.
The total sale profit, which is the sale price minus the sale cost, amounts to 293.788 million KRW. Since Wirye New Town is a joint project with LH Corporation, SH Corporation’s actual profit is estimated to be 25% of this, which is 73.447 million KRW.
The profit margin is 37.9%, which is higher compared to Magok 9 Complex (33.3%) and Godeok Gangil 8 Complex (33.9%), where sale costs were previously disclosed.
The design and contract details of each complex are disclosed on the SH Corporation website, and the usage details of the sale profits are also disclosed in the same manner.
SH Corporation has been disclosing sale costs seven times, including Ogeum, Hangdong, Magok, Godeok Gangil, Segok, and Naegok, since first revealing the sale cost of Godeok Gangil 4 Complex in November 2021 to enhance citizens’ right to know and practice open management and transparent administration.
SH Corporation plans to continue the practice of ‘sale cost disclosure’ to break the construction vested interest cartel and prevent poor construction.
Meanwhile, in response to Seoul Mayor Oh Se-hoon’s request for public housing quality improvement in January last year, SH Corporation introduced ‘Seoul-type construction cost’ and ‘Seoul-type supervision’ to promote high-quality century homes that are structurally safe and durable for over 100 years.
SH Corporation especially judged that improvement of the ‘supervision’ system, which manages and oversees whether construction is carried out according to design documents, is urgent to secure construction quality, enhance site safety management, and prevent poor construction, and is considering introducing ‘Seoul-type supervision’ for more effective and substantial supervision operation.
Along with this, SH Corporation will continue to promote innovative policies such as ▲ asset disclosure ▲ project result disclosure ▲ completion drawing disclosure ▲ post-sale system ▲ direct construction system ▲ appropriate wage system.
Kim Heon-dong, President of SH Corporation, said, “The corporation discloses sale costs, assets, project results, and completion drawings for citizens’ right to know, and implements post-sale system, direct construction system, appropriate wage system, and high-quality housing to prevent poor construction and break the construction vested interest cartel. We will continue to discover and implement innovative policies to improve citizens’ residential environment and contribute to the development of the construction industry.”
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