- Apartments Benefiting from Administrative Towns: Backed by Solid Demand and Multi-Billion KRW Premiums
- Walking Distance to a Major Administrative Town... Soaring Contract Rates at Uijeongbu Lotte Castle Narivek City
Despite the cautious stance in the real estate market, newly built apartments near administrative towns continue to show strong performance. It is analyzed that these areas exhibit robust characteristics regardless of market conditions, as they have a substantial base of administrative town workers as underlying demand and a large number of waiting buyers, resulting in premium prices in transactions.
An administrative town refers to an area where public institutions such as city halls, provincial offices, and police agencies are densely concentrated. Administrative towns are often located in regional hubs rich in infrastructure for transportation, business, and convenience to facilitate easy access for local residents. Therefore, residential facilities nearby benefit from all these infrastructures.
In particular, since all workers employed in the administrative town form the underlying demand, the potential for real estate value appreciation is considered high. For example, the area near Pyeongchon Station in Anyang, Gyeonggi Province, has emerged as a representative central area of Anyang since the establishment of the Pyeongchon Administrative Town, leading to a sharp rise in real estate values. According to the Ministry of Land, Infrastructure and Transport’s actual transaction data, the ‘Pyeongchon The Sharp Central City’ near Pyeongchon Administrative Town saw the price of an 84㎡ unit rise from 566 million KRW at the time of occupancy in 2016 to 1.285 billion KRW in January this year, more than doubling in price.
The same applies to apartments near the Songpa Legal Town located in Munjeong-dong, Songpa-gu, Seoul. The ‘Songpa Park Habio Prugio’ nearby, which was traded at 799.8 million KRW for a 116㎡ unit before the legal town was established in 2016, saw its value soar significantly after the legal town was developed in 2018, reaching 1.975 billion KRW in August last year.
An industry insider said, “Administrative institutions are often built in areas with excellent transportation and infrastructure to ensure easy access for local residents, so nearby apartments benefit greatly, leading to significant value increases. Especially, the land available for residential facilities around administrative institutions is limited, which increases scarcity value, and having workers from these institutions as underlying demand enhances liquidity.”
Recently, the ‘Uijeongbu Lotte Castle Narivek City’ near the wide-area administrative town being developed in Geum-o-dong, Uijeongbu, Gyeonggi Province, has emerged as a landmark and is seeing steady contracts. Additionally, it is evaluated that the financial benefits provided significantly reduce the burden on buyers, making home ownership much more affordable.
Uijeongbu Lotte Castle Narivek City is located in Geum-o-dong, Uijeongbu-si, Gyeonggi-do, consisting of four buildings ranging from four basement floors to 39 floors above ground, with units sized between 84 and 155㎡, totaling 671 households. Some remaining units are currently available for first-come, first-served contracts with designated building and unit numbers. Anyone aged 19 or older can contract for their desired remaining unit regardless of their residential area, without needing a subscription savings account.
In particular, the down payment has been lowered to 5% (with a fixed 10 million KRW for the first installment), and 50% of the down payment is supported fully with loan interest through loan brokerage benefits for contract holders, greatly reducing the financial burden on prospective residents. Additionally, a premium entrance door is provided free of charge to enhance indoor luxury. Other benefits include a fixed 3% interest rate on intermediate payments, further easing buyers’ burdens.
Moreover, with the Uijeongbu ‘Hillstate Geumo The First’ already 100% sold out and scheduled for occupancy by the end of this year, where premium-priced listings are appearing, the real estate market in Uijeongbu is heating up, and the future value of Uijeongbu Lotte Castle Narivek City is expected to rise further.
Uijeongbu Lotte Castle Narivek City is located within walking distance of the administrative town, which includes the Uijeongbu Probation Office, National Health Insurance Corporation, Health Insurance Review & Assessment Service Northern Gyeonggi Branch, and Korea Workers’ Compensation & Welfare Service. Furthermore, Narivek City, where the complex is situated, is planned to transform into a mixed-use complex with residential facilities, offices, commercial areas, parks, and cultural facilities including the future job theme park ‘Future Planet,’ enhancing its future value. It is located near Hyoja Station on the Uijeongbu Light Rail Transit line, with convenient walking access to Geumo Elementary School, Hyoja Middle School, and Hyoja High School, as well as easy access to the Geum-o and Singok-dong academy districts.
Community facilities include a fitness club, indoor golf club, screen golf course, multi-sports room, study rooms, reading rooms, book caf?, single-person reading rooms (male and female), kids’ room, coin laundry, as well as senior clubs, daycare centers, and a community care center. Discount benefits from Lotte Group affiliates will also be provided exclusively for residents. All units come with underground storage rooms.
The model house is located in Geum-o-dong, Uijeongbu-si, Gyeonggi-do, near the project site. Occupancy is scheduled for November 2027.
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