The standard construction cost applied to housing under the price ceiling system in Seoul's Gangnam 3 districts (Gangnam, Seocho, Songpa) and Yongsan District has increased by 3.3% after six months. With the rise in construction costs, the trend of rising sale prices is expected to continue.
On the 13th, the Ministry of Land, Infrastructure and Transport announced that the standard construction cost for price ceiling system housing (16 to 25 floors or less, ground floors with exclusive area of 60 to 85㎡) will be raised by 3.3%, from the previous 2,038,000 KRW per ㎡ to 2,106,000 KRW per ㎡.
The increased construction cost will apply to complexes that submit applications for resident recruitment approval from this day onward.
This rate of increase is the highest in three years since September 2021 (3.4%). The rise in material costs such as ready-mixed concrete and labor costs influenced this change.
The standard construction cost is one of the components used to set the price ceiling for housing under the price ceiling system. The sale price is determined by adding land cost, construction additional cost, and land additional cost to the standard construction cost. The Ministry of Land, Infrastructure and Transport announces this regularly every March and September.
An official from the Ministry said, "We will promptly reflect changes in construction costs and support housing stability for actual homebuyers by sufficiently supplying quality housing."
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