Expectations for Price-Competitive 'Geomdan Aterazai'

- Price Determines Success of Sale... Competition Rate Differs Over 10 Times Depending on Application of Pre-sale Price Control System
- Price Matching and Expectation of Premium Increase... Geomdan Aterazai with Price Competitiveness

As price competitiveness emerges as a hot issue in the pre-sale market, housing complexes subject to the pre-sale price ceiling system, offered at prices competitive compared to surrounding market prices, are considered steady sellers. This is because they can reduce the burden on buyers and, after moving in, there is an expectation of premium gains through price alignment with nearby apartments, attracting high interest from both actual demand and investment demand.

According to data from the Korea Real Estate Board's Apply Home, among nationwide pre-sale complexes excluding Seoul from January to July this year, 23 complexes were subject to the pre-sale price ceiling system, with an average first-priority competition rate of 42.55 to 1. In comparison, complexes not subject to the price ceiling system during the same period had an average first-priority competition rate of only 3.69 to 1, showing a difference of more than 10 times.

Furthermore, complexes subject to the price ceiling system dominated the top ranks in subscription competition rates. During the same period, all of the top 5 complexes with the highest competition rates were price ceiling system apartments. Even when expanding the top competition rate range to 10 complexes, 8 of them were subject to the price ceiling system, highlighting the concentration of demand.

The reason why apartments under the pre-sale price ceiling system are popular is attributed to the expectation of price increases after moving in due to price competitiveness and alignment with nearby complexes. As a result, the popularity of price ceiling system complexes is high in the subscription market as well.

In fact, the ‘Pangyo Technovalley Joongheung S-Class,’ which recorded the highest-ever average first-priority competition rate of 1110.35 to 1, was priced between 796 million KRW and 862 million KRW for the standard 84㎡ unit (excluding the 84T type). Considering that the nearby ‘Pangyo The Sharp Forest 11 Complex’ 84㎡ unit was traded at 1.12 billion KRW in July this year, the price is about 300 million KRW lower.

Additionally, ‘Dongtan Station Daebang Elyum The Signature’ in Hwaseong, Gyeonggi-do (first priority 626.99 to 1) and ‘Gwacheon Dietre Prestige’ (first priority 228.51 to 1), which were sold in Gwacheon, were supplied at prices 300 million KRW to 700 million KRW lower than surrounding market prices, respectively, drawing attention and recording triple-digit subscription competition rates.

A real estate expert said, “Recently, price competitiveness largely determines the success of the pre-sale market. Especially, price ceiling system apartments allow buyers to realize home ownership at reasonable prices and expect capital gains, thus attracting attention from both actual demand and investment demand.”

Meanwhile, attention is focused on ‘Geomdan Aterazai,’ where the pre-sale price ceiling system is applied and capital gains can be expected. ‘Geomdan Aterazai,’ introduced by the GS Construction consortium in the Bullo-dong area of Geomdan New Town, Incheon, will be developed with 6 buildings ranging from 2 basement floors to a maximum of 25 floors above ground, totaling 709 units with exclusive areas of 59 to 84㎡. It is characterized by being composed only of small to medium-sized units, which are scarce within Geomdan New Town.

‘Geomdan Aterazai’ is evaluated to have price competitiveness due to the application of the pre-sale price ceiling system. The 84㎡ units are priced from 521 million KRW, and the 59㎡ units from 384 million KRW. Compared to recent transactions in Geomdan New Town where 84㎡ units traded at up to 770 million KRW and 59㎡ units at around 550 million KRW, these prices are considerably affordable. In a situation where apartment pre-sale prices are rapidly rising, it is regarded as an opportunity for non-homeowners to secure their own home, as well as an expectation of premium gains upon winning the lottery.

The pleasant residential environment and excellent educational environment also attract attention. Near the complex is a planned neighborhood park, the starting point of the U-shaped green axis encompassing Geomdan New Town, as well as a cultural park (planned) of approximately 93,000㎡ featuring a landmark lake park of the new town, all within walking distance, allowing residents to enjoy a comfortable healing life. Additionally, there are planned sites for an elementary school and kindergarten directly opposite the complex, providing not only an excellent educational environment but also safe commuting for children.

The well-connected transportation network is also notable. Residents will be able to use the Geomdan Hosu Park Station (planned), an extension of Incheon Subway Line 1. Nearby, roads connecting Incheon Daegok-dong to Bullo District (planned) and Dogye to Majon roads (planned) are currently under construction. Once opened, these will enable direct access to Gimpo Hangang-ro and Ilsan Bridge, improving accessibility to major urban centers in Seoul.

The subscription schedule starts with special supply on Monday, August 5, followed by first-priority applications on Tuesday, August 6, and second-priority applications on Wednesday, August 7. Winners will be announced on Tuesday, August 13, and contract signing will take place over four days from Monday, August 26 to Thursday, August 29. First-priority eligibility is granted to residents of Incheon and the metropolitan area who have held a subscription savings account for more than one year and meet the deposit criteria by area and size. Homeowners and household members are also eligible to apply.

The model house is located in Sang-dong, Bucheon-si, Gyeonggi-do (within the Bucheon Video Culture Complex).