Pre-sale Complex 'Hillstate Shinyong The River' First-Come, First-Served Contract 진행

- Highlighted as an alternative to reduce risks of poor construction in post-sale
- 'Hillstate Shin-yong The River' to move in March next year, offering reasonable prices and financial benefits

One of the keywords gaining attention in the market this year is "defects." This is analyzed to be due to a series of issues related to poor construction, starting with the collapse of an underground parking lot in a complex under construction last April. As one of the alternatives to these problems, "post-sale" has been spotlighted, drawing attention to complexes supplied through post-sale this year.

According to the defect application and processing status and defect status by construction company disclosed by the Ministry of Land, Infrastructure and Transport's Defect Review Dispute Mediation Committee, an average of about 4,000 defect-related disputes were processed annually from 2019 to August this year. About 90% of these were defect reviews to determine the presence of defects, while the rest were dispute mediation and adjudication. Among the 10,706 cases judged for defects during this period, the actual defect judgment rate was 60.5% (6,481 cases), well over half.

In the absence of clear eradication measures to solve these problems, the "post-sale system" has emerged as one of the alternatives. In post-sale, sales proceed when the construction progress rate is 60-80% or more. Since sales occur after some of the framework such as apartment exterior walls and underground parking lots are partially built, buyers can check the actual property. Additionally, since most of the construction costs are borne by the contractor itself, large construction companies with ample funding mainly undertake the construction, which is an advantage.

The industry analyzes that although post-sale complexes are not a direct solution to recent issues such as poor construction and defects, they can reduce risk factors related to these problems and highlight advantages not found in pre-sale complexes, attracting demand.

In fact, post-sale complexes supplied this year have been highly popular. Looking at post-sale complexes supplied in the second half of this year (July to October), △ Dongtan Lake Park Jayeon & e-Pyeonhansesang (240.15 to 1) △ Hoban Summit Godeok New Town Phase 3 (82.33 to 1) △ The Beach Prugio Summit (22.25 to 1) achieved excellent subscription results. Compared to the nationwide first-priority subscription competition rate of 15.62 to 1 during the same period, the subscription performance of post-sale complexes greatly exceeded the national average competition rate.

The same applies to "Hillstate Sinyong The River," currently being sold by Hyundai Construction in the Buk-gu area of Gwangju. This complex, a post-sale complex scheduled for occupancy in March 2024, received high responses from buyers, recording a competition rate of up to 92.33 to 1 in the first-priority subscription application.

Hillstate Sinyong The River is currently conducting first-come, first-served contracts with designated building and unit numbers. In first-come, first-served contracts, anyone aged 19 or older can purchase regardless of residence area restrictions or home ownership status, including household heads and members. Especially, since a subscription savings account is not required for purchase, it is emerging as a breakthrough for young generations such as single-person households and newlyweds who are disadvantaged in point-based competition. Moreover, the sale rights obtained through first-come, first-served contracts are not counted as housing when applying for subscriptions in the future, so there is no burden.

The reasonable sale price is also noteworthy. It was supplied at a price up to 200 million KRW lower than the sale price of other complexes sold nearby (up to 929 million KRW for an exclusive area of 84㎡). Along with this, only 5% of the contract deposit and 5% of the interim payment need to be paid, and the remaining 90% balance can be paid upon moving in, significantly reducing the financial burden. In other words, by paying about 80 million KRW, which is 10% of the sale price for an exclusive area of 104㎡, buyers can prepare their home without additional burden until moving in.

Additionally, the opening of Sinyong Station (tentative name, planned) on Gwangju Urban Railway Line 2 is scheduled within 500 meters radius. According to the Gwangju Urban Railway Construction Headquarters, the second phase section passing near the complex is planned to start construction in October and be completed in 2029, and once opened, it is expected to enable convenient travel throughout Gwangju.

The location also offers excellent proximity to work with easy commuting to Gwangju Advanced Science Industrial Complex Phase 1, 2, and planned Phase 3, where various jobs are concentrated. Within 300 meters radius of the complex is Yongdu 2 Elementary School (tentative name, scheduled to open in March 2025), and safe walking to school is possible with the construction of Bitgoeul-daero pedestrian overpass (tentative name).

A sales official said, "Since Hillstate Sinyong The River can be moved into in four months, buyers can check for defects in advance, and the probability of occupancy problems due to future construction cost increases is very low," adding, "Especially, with a reasonable sale price and practical financial benefits provided, inquiries about contracts are continuing."

Meanwhile, this complex sold by Hyundai Construction consists of 19 buildings from basement 2 floors to ground 29 floors, with a total of 1,647 households ranging from 74 to 135㎡ exclusive area. The model house is located in Yuchon-dong, Seo-gu, Gwangju Metropolitan City.