Sudden Base Rate Cut, 'Uijeongbu Lotte Castle Narivek City' Contract Approaching

- Base Interest Rate Cut for the First Time in 3 Years... Real Estate Price Increase Expected to Accelerate
- Strengthened Buying Sentiment for Popular Areas and Brand Apartments in the Seoul Metropolitan Area Anticipated

With the Bank of Korea's Monetary Policy Committee lowering the base interest rate for the first time in over three years, the upward momentum in the real estate market is likely to accelerate further. The rate cut reduces the loan interest burden for homebuyers and can particularly enhance the investment appeal of assets such as newly built apartments. As a result, demand for real estate in major areas, including the Seoul metropolitan area, is expected to revive, driving up housing prices.

According to the Bank of Korea's Monetary Policy Committee (MPC), the base interest rate was cut by 0.25 percentage points on October 11. This marks a shift to a 'rate cut' policy direction for the first time in 3 years and 2 months since August 2021.

The announcement of the rate cut is likely to positively change homebuyers' sentiment. In particular, interest in popular areas and prime complexes within the Seoul metropolitan area is expected to intensify. Experts analyzed, "This rate cut not only reduces the interest burden associated with home purchases but also may increase buying demand due to expectations that housing prices will rise further in the future."

In fact, real estate prices are highly correlated with the base interest rate. From October 2008 to 2009, the Bank of Korea continuously lowered rates to the 2% range. This made loans cheaper, increasing demand for home purchases, and since 2009, South Korea's real estate market gradually showed signs of recovery. During the COVID-19 pandemic in 2020, the Bank of Korea also lowered the base rate to 0.5% in May 2020, and thanks to the low interest rates, mortgage interest payments significantly decreased, revitalizing the real estate market.

[Interior view at the time of opening of Uijeongbu Lotte Castle Narivek City model house]

As the rate cut takes effect, Lotte Construction's 'Uijeongbu Lotte Castle Narivek City' in Uijeongbu, Gyeonggi Province, has seen a significant increase in customer interest ahead of the winner contract signing. The winner contract period for Uijeongbu Lotte Castle Narivek City is scheduled for three days from Tuesday, October 22 to Thursday, October 24.

A sales official stated, "The brand apartment is located in a highly valuable future location, attracting many inquiries from customers. The heightened preference for new constructions and the influx of demand for homeownership outside Seoul have made interest very strong."

In particular, Uijeongbu Lotte Castle Narivek City draws attention with financial benefits that significantly reduce the contract burden. Benefits include a fixed contract deposit system (first payment of 10 million KRW), interest support on a 5% contract deposit loan (interest-free), and a fixed 3% interest rate on interim payments.

A real estate expert said, "This base rate cut is expected to ease the loan burden for homebuyers and strengthen buying sentiment, especially centered on newly built apartments. Brand apartments in excellent locations like Uijeongbu Lotte Castle Narivek City will be very attractive choices in terms of future value and stability." He added, "With the rate cut combined with favorable conditions in the pre-sale market, the upward trend in the Seoul metropolitan real estate market is likely to gain full momentum."