Interior Costs Near 2 Million KRW per 3.3㎡... Complexes Offering Free Options Gain Popularity

As the prices of building materials and labor costs soar, interior design expenses are also skyrocketing. In response, some complexes in the housing market are gaining popularity by offering free options at move-in to offset interior costs.

According to the real estate industry on the 12th, interior design costs are estimated to be around 2 million KRW per 3.3㎡. For example, an apartment sold in Gwanak-gu (based on a net area of 84㎡) was priced with a total option cost of about 80 million KRW, including balcony expansion, furniture (kitchen and bedroom), built-in units, home appliances, and system air conditioners. This amounts to approximately 2.3 million KRW per 3.3㎡.

Also, the B apartment sold in Gwangjin-gu had option costs of about 60 million KRW (1.8 million KRW per 3.3㎡), indicating that option costs have become common. In an apartment in Gyeonggi-do, faucets, toilets, and washbasins were even included as paid options.

The rise in interior design costs for newly sold apartments is due to soaring prices of building materials and labor. According to the Consumer Price Index by Statistics Korea, the ‘residential facility maintenance and repair’ index in Seoul in August this year was 118.45, up 10.34% from early last year. This exceeds the overall inflation rate of 7.82% during the same period. Additionally, if buyers purchase new washing machines, dishwashers, and other appliances to match the interior design, several million KRW more will be added.

Therefore, the sales industry is offering various options by complex to minimize the interior burden on buyers. Since these are targeted at contract holders, there is a ‘group purchase’ effect, and because interior work is done during the apartment construction process, unit costs can be lowered. Moreover, inconveniences such as needing neighbors’ consent during construction or having to vacate the home during the construction period can be reduced.

First, ‘Eunpyeong Xi The Star’ in Eunpyeong-gu, Seoul, constructed by GS Construction, provides basic options such as hardwood flooring, European porcelain tiles, system air conditioners, Sysclean, Objet refrigerators, and dishwashers. It also offers a fixed down payment of 20 million KRW and full interest-free benefits on intermediate payments.

This complex consists of a total of 312 households and is currently selling small units (net area 49㎡). Each household can park at least one vehicle, and features such as two bathrooms and ample storage space stand out.

‘Sangdo Prugio Clavenue’ by Daewoo Construction, located in Dongjak-gu, also provides various basic options including balcony expansion for all units, built-in wardrobes in two bedrooms, system air conditioners, hybrid cooktops, and electric ovens. It is supplied with a total of 771 households ranging from 59 to 84㎡ net area.