Soaring Sale Prices... Interest in 'Yeongtong Ja-i Central Park'

- Land cost and basic construction cost steadily rising
- Selective subscription expected to intensify with rising sale prices

As the average apartment sale price nationwide has been on the rise for nine consecutive years since 2014, forecasts suggest that the upward trend in sale prices will continue in 2024.

According to Real Estate R114, the average apartment sale price nationwide started at 9.39 million KRW per 3.3㎡ in 2014 and steadily increased to 18 million KRW in 2023. This represents nearly a twofold increase over ten years. The sale price in 2024 is expected to rise by 26.78% from the previous year to 22.82 million KRW.

The factors driving the increase in sale prices include land costs as well as rising construction material and labor costs. Sale prices are determined by adding additional costs to the land price and the basic construction cost.

According to the Korea Real Estate Board, nationwide land prices have been steadily increasing by an average of 0.081% per month since March 2023. Additionally, the Ministry of Land, Infrastructure and Transport raised the basic construction cost by 2.05% in March 2023 and by 1.7% in September 2023, setting the current basic construction cost at 1,976,000 KRW.

Industry experts also analyze that it will not be easy to lower sale prices, which is expected to fuel strong interest in new housing supply. In fact, according to Real Estate R114, the average competition rate for first-priority applications nationwide in the second half of 2023 was 22.58 to 1, more than double the first half average of 11.12 to 1.

Contrary to expectations that demand would fall due to rising sale prices, complexes that closed with first and second priority applications are emerging one after another. In May, Gwangmyeong Xi The Sharp Forena in Gwangmyeong City and ‘Indeokwon Purse B.L.’ in Uiwang City closed with competition rates of 11.44 to 1 and 11.08 to 1, respectively, for first and second priority applications.

A real estate official said, “Supply in the metropolitan area is expected to decrease in 2024, and the upward trend in sale prices is likely to continue, leading more people to jump into ‘home ownership’ before prices rise further. Along with this, ‘selective applications’ that determine marketability based on the appropriateness of sale prices and location for each complex are expected to spread.”

[Yeongtong Xi Central Park Bird's-eye View / Photo by GS Construction]

Meanwhile, GS Construction is attracting attention by newly supplying ‘Yeongtong Xi Central Park’ in Yeongtong-dong, Yeongtong-gu, Suwon, in January 2024.

According to the Korea Real Estate Board, Yeongtong-gu in Suwon, along with Sujeong-gu in Seongnam, is the only area in Gyeonggi Province to show a rising trend in the sales price index for eight consecutive months. Moreover, as this is the first new supply in Yeongtong-dong in nine years, it is expected to attract significant interest from buyers.

This apartment complex is adjacent to Yeongtong Central Park, which is about 19 times the size of a soccer field (137,062㎡), and is also close to Yeongheung Forest Park, which opened in October 2022 and is about 70 times the size of a soccer field (501,937㎡), offering a pleasant and healthy living environment.

Additionally, there are more than ten schools within a 1 km radius, including Yeongtong Elementary School, Yeongtong Middle School, and Yeongdeok High School. Furthermore, the Suwon City Yeongtong Library and Yeongtong Academy District, a representative educational area in Suwon, are within walking distance.

Transportation is also well established. Yeongtong Station on the Suin-Bundang Line is within a five-minute walk, and the Yongin-Seoul Expressway and Gyeongbu Expressway are nearby. Large supermarkets such as Homeplus (Suwon Yeongtong Branch) and Lotte Mart (Yeongtong Branch) are accessible on foot, and the Suwon Sports and Culture Center, where various sports and hobbies like swimming and golf can be enjoyed, is close by. It is also easy to use the large commercial areas and convenience facilities around Yeongtong Station.

Yeongtong Xi Central Park consists of seven buildings with two basement floors and up to 29 floors above ground, totaling 580 households, all composed of the highly preferred exclusive area of 84㎡. The types are △84㎡A with 291 households △84㎡B with 103 households △84㎡C with 107 households △84㎡D with 79 households.

GS Construction plans to design Yeongtong Xi Central Park’s exterior to stand out by considering the surrounding landscape and location characteristics, and will provide theme gardens blending green spaces and resting areas, as well as children’s playgrounds throughout the complex.

The community facility, Club Xi, will include a fitness center, golf practice range, screen golf, sauna, study room, library, and indoor playground. The floor plans will be designed with a 4-bay slab-type structure allowing cross ventilation (except for some types), and will incorporate the latest specialized designs such as walk-in entrances, large dressing rooms, and pantries.

The model house will be located near the Yeongtong Xi Central Park site, and move-in is scheduled for early 2027.