"200 Million Won Increase in 4 Months"... Buyers Applying Before Price Hike in Pre-Sale Market

Housing Complexes for Sale in the Second Half of This Year, Price Increase
Nationwide Pre-sale Rights Transactions Approaching 40,000 Cases

As nationwide sale prices continue to rise, demand is flocking to new complexes. With construction cost increases making price hikes inevitable and the perception spreading that "earlier sold complexes are cheaper," the subscription market continues to thrive.

Night view perspective of Sangdo Prugio Clavenue. (Provided by Daewoo E&C)

According to the Housing and Urban Guarantee Corporation (HUG) on the 28th, as of the end of July this year, the nationwide private apartment sale price was 16.25 million KRW per 3.3㎡, up about 11.88% from 14.53 million KRW in the same month last year (end of July 2022). In Seoul, during the same period, prices rose about 13.16% (28.21 million KRW → 31.92 million KRW), showing the largest increase in sale prices.

Although sale prices continue to rise, subscription competition rates are also on the rise. According to Real Estate R114, the average sale price per 3.3㎡ of ‘Raemian La Grande,’ which was sold in the Dongdaemun-gu area of Seoul in August this year, was 33.10 million KRW, about 12.39% higher than the average sale price of 29.45 million KRW per 3.3㎡ of ‘Huigyeong Xi Decencia,’ sold nearby in April just four months earlier. However, the complex recorded a first-priority average competition rate of 79.11 to 1.

In the case of ‘Gwangmyeong Central I-Park,’ sold in the Gwangmyeong-si area of Gyeonggi Province in August this year, the sale price per 3.3㎡ was 33.20 million KRW, up 19.77% compared to the sale price of 27.72 million KRW of ‘Gwangmyeong Xi The Sharp Forena,’ sold nearby three months earlier. The complex recorded a first-priority average competition rate of 18.94 to 1.

The same applies to provincial areas. ‘Daeyeon DIEL,’ sold in the Nam-gu area of Busan in July this year, had a sale price of 23.34 million KRW per 3.3㎡, which is a whopping 33.14% increase compared to the sale price of 17.53 million KRW of ‘Doosan We’ve The Zenith Ocean City,’ sold nearby in March this year. Based on the highest price for an exclusive area of 84㎡, the price rose by more than 200 million KRW in four months. Nevertheless, the complex recorded a first-priority average competition rate of 15.65 to 1, and all units were sold out on the 19th.

In fact, nationwide apartment pre-sale rights transactions are expected to soon exceed 40,000 cases. According to the Korea Real Estate Board, nationwide pre-sale rights transactions totaled 36,207 in June this year, marking the highest since 42,685 in August last year.

A representative from ForAdOne said, "As the real estate market rebounds nationwide, the ‘house price bottom theory’ is gaining traction, and with sale prices continuously rising, there is a strong belief that now is the right time to buy a home, fueling the subscription fever. Since the later the sale period, the higher the sale price is likely to be, it is necessary to pay attention to new complexes that are sold before then."

Meanwhile, new complexes scheduled for sale nationwide are attracting attention. Daewoo Construction will open a model house for ‘Sangdo Prugio Clavenue,’ located in Sangdo-dong, Dongjak-gu, Seoul, on the 1st of next month and will begin full-scale sales. This complex will be supplied with a total of 771 households across 10 buildings, ranging from basement 5 floors to ground 18 floors, with exclusive areas of 59 to 84㎡. Various options such as balcony expansion for all households, built-in wardrobes in bedroom 2, system air conditioning, hybrid cooktops, and electric ovens are provided as standard. Within a 700m radius, Jangseungbaegi Station on Subway Line 7 is located, allowing travel to Gangnam-gu Office Station in about 20 minutes without transfers, enabling convenient access throughout Seoul.

Hyundai Construction plans to sell ‘Hillstate Gwanak Centciel’ through the Bongcheon Housing Redevelopment Project in Bongcheon-dong, Gwanak-gu, Seoul, in September. The Western Line light rail is planned within walking distance, and once the line opens, transfers will be possible to Subway Lines 1, 2, 6, 7, and 9. This complex consists of 9 buildings from basement 3 floors to ground 28 floors, totaling 997 households, of which 101 households with exclusive areas of 58 to 59㎡ will be supplied for general sale.

The DL E&C consortium plans to sell ‘e-Pyeonhansesang Geomdan Well County’ in Geomdan New Town, Seo-gu, Incheon, in September. Within walking distance of the complex, the new station 101 (tentative name) on the Geomdan extension line of Incheon Urban Railway Line 1 is scheduled to open in 2025. This complex will consist of 14 buildings (including 3 terrace buildings) from basement 2 floors to ground 25 floors, with a total of 1,458 households ranging from 59 to 104㎡ exclusive area.