As construction costs continue to rise, leading to an ongoing increase in sale prices, prospective homebuyers are turning their attention to complexes where the price ceiling system is applied.
According to the 'Private Apartment Sale Price Trends' released by the Housing and Urban Guarantee Corporation (HUG), the average sale price of apartments in the Seoul metropolitan area reached 25.97 million KRW per 3.3㎡ in May this year. This marks a sharp increase of 16.61% compared to the same month last year (22.27 million KRW).
The main reason behind this upward trend in sale prices is the rise in construction costs due to high inflation. According to the Korea Institute of Civil Engineering and Building Technology, as of March this year, the Construction Cost Index recorded 154.8, up 2.4% from 151.22 points in the same month last year, marking the highest level for two consecutive months following February.
Land cost burdens are also significant. Data from the Korea Real Estate Board shows that the nationwide land price increase rate was 0.66% from the beginning of this year to May, up 0.61 percentage points from 0.05% during the same period last year. The Seoul metropolitan area saw an even higher increase of 0.85%.
As a result, complexes subject to the price ceiling system have been enjoying a surge in popularity in the recent sale market. This month, 'Dietre First G' in Gwacheon, Gyeonggi Province, attracted over 100,000 applicants for 453 units in the first priority subscription. The sale price for the 59㎡ exclusive area ranged from 768.35 million KRW to 870.35 million KRW, which is approximately 400 million to 700 million KRW lower than the market price of similar apartments nearby in Gwacheon. The application of the price ceiling system, which set the sale price lower than the market price, is considered a key factor for the successful subscription.
Similarly, 'Goyang Janghang Kaibeu Ubora' in Ilsandong-gu, Goyang, Gyeonggi Province, also achieved excellent results with 10,105 applicants for 1,278 units, recording an average competition rate of 33.6 to 1 for the 84㎡ exclusive area. This complex is also subject to the price ceiling system.
An industry expert explained, “Sale prices include construction costs and land prices. Therefore, even within the same new town, plots acquired later tend to have higher sale prices unless suppliers forgo their margins,” adding, “This is why demand for homeownership is rushing to the subscription market.”
Meanwhile, 'Jeil Punggyeongchae Unjeong' is preparing for sale this month in Unjeong New Town, Paju. Unjeong New Town in Paju is a second-phase new town and a public land development district where the price ceiling system is applied.
Not only is the price reasonable, but the location conditions are also excellent. The planned GTX-A Unjeong Station is within walking distance, and once opened, it will take about 18 minutes to travel from Unjeong Station to Seoul Station, making commuting to Seoul much more convenient. Additionally, the Paju-Gimpo section of the Seoul Metropolitan Area Second Ring Expressway is under construction with a target opening in 2026, and access to the Pyeongtaek-Paju Expressway (Seoul-Munsan) and the Second Jayuro Road is also easy.
Various infrastructures concentrated around the planned GTX-A Unjeong Station will also be easily accessible. In particular, elementary, middle, and high school sites, as well as kindergarten sites, are planned right in front of the complex, promising a one-stop educational environment. Moreover, since Unjeong High School and Sannae Village academy district are not far away, it is expected to attract significant interest from parents in their 30s and 40s with school-age children.
Furthermore, nearby large marts such as Homeplus and Lotte Premium Outlet are located close by, and various commercial facilities and lifestyle convenience infrastructures centered around Unjeong Station will be easily accessible.
In addition, a cultural park (planned) approximately 1.5 times the size of Gwanghwamun Square will be created right next to the complex, along with a waterside park (planned) and Sannae Park, providing a green environment for a pleasant residential life.
Meanwhile, Jeil Punggyeongchae Unjeong, located in the Unjeong New Town 3 District area of Paju, Gyeonggi Province, will be developed with 11 buildings ranging from one basement floor to 28 floors above ground, comprising a total of 520 units with exclusive areas of 74㎡ and 84㎡. A model house will be established in Wadong-dong, Paju, Gyeonggi Province. The opening is scheduled for July 2024.
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