- As Financial Benefits Ease Homebuying Burden, More End-Users Rush to Sign Contracts
- "Uijeongbu Lotte Castle Narivek City" Offers 5% Contract Deposit and Loan Assistance
Complexes offering benefits that reduce the financial burden on buyers are continuing to achieve complete sell-outs. In particular, there is a growing trend of complexes lowering the contract deposit from the typical 10% of the total sale price to 5%. This makes it easier for buyers to secure the initial funds, reduces the burden of purchasing a home, and significantly increases contract rates, according to analysts.
Traditionally, the contract deposit for apartments is set at around 10% of the total sale price. This means buyers must have tens of millions to hundreds of millions of won in cash, depending on the sale price. In addition, the sharp rise in sale prices due to increased construction costs has further heightened the financial burden for homebuyers.
As these barriers to homeownership have grown, more complexes are offering a 5% contract deposit as a benefit to buyers. Even a 5% reduction is seen as significantly easing the burden and greatly assisting buyers in securing a home. For example, for an apartment with a sale price of 600 million won, the deposit drops from 60 million won (10%) to 30 million won (5%), saving tens of millions of won. This has led to improved sales performance, as buyers who struggle to gather the initial funds are able to sign contracts.
By complex, 'Yongin Prugio One Cluster 1st Complex' in Yongin, Gyeonggi Province, offered a 5% contract deposit benefit and achieved a complete sell-out in a short period. Although the large scale of the complex initially led to expectations of a lengthy sales period, the buyer benefits enabled rapid sales success, according to analysts.
'Raemian Songdo Station Centripol' in Yeonsu-gu, Incheon, also set the contract deposit at 5% for all three blocks, receiving positive feedback from buyers and achieving an early complete sell-out with all units sold.
An industry official stated, "Since apartment sales involve a structure where buyers move in after several years, following the payment of the contract deposit, interim payments, and the balance, even a slight reduction in the initial contract deposit allows buyers to plan their finances more flexibly. For this reason, complexes offering a 5% contract deposit benefit are attracting end-users without existing cash reserves, rather than only those with substantial liquidity, and are enjoying continued sales success."
In Uijeongbu, Gyeonggi Province, 'Uijeongbu Lotte Castle Narivek City' is reportedly seeing a significant increase in contract rates by offering buyer benefits rarely found in other complexes. Uijeongbu Lotte Castle Narivek City is located in Geumo-dong, Uijeongbu-si, Gyeonggi Province, and consists of four buildings with four basement levels and 39 above-ground floors, totaling 671 units. Some remaining units are available for first-come, first-served building and unit selection contracts. Anyone aged 19 or older, regardless of residence area, can sign a contract for a desired remaining unit without a subscription savings account.
The actual contract deposit has been lowered to 5% (with the first installment set at a fixed 10 million won). Of this deposit, 50% can be financed through a loan, with all loan interest fully supported as a buyer benefit, greatly reducing the financial burden for prospective residents. In addition, a premium entrance door is provided free of charge to enhance the interior luxury. Other benefits further easing the burden for buyers include a fixed 3% interest rate on interim payments.
Uijeongbu Lotte Castle Narivek City boasts an excellent educational environment. Students can walk to nearby Geumo Elementary School, Hyoja Middle School, and Hyoja High School, and it is convenient to access the academy districts in Geumo-dong and Singok-dong.
The complex is located in the station area of Hyoja Station on the Uijeongbu Light Rail Transit. Narivek City, where the complex is situated, is expected to transform into a mixed-use district with residential, office, commercial, park, and cultural facilities, including the future job-themed park 'Future Planet.' Nearby are the Gyeonggi Provincial Government Northern Office, Gyeonggi Northern Police Agency, and Uijeongbu Fire Station. Other public institutions in the area include Uijeongbu Probation Center, National Health Insurance Service, Health Insurance Review and Assessment Service Gyeonggi Northern Branch, and Korea Workers' Compensation and Welfare Service.
The community facilities will include a fitness club, indoor golf club, screen golf range, multi-sports room, study room, reading room, book cafe, individual reading rooms (for men and women), kids' room, coin laundry, as well as a senior club, daycare center, and community care center, among other convenient amenities. Every unit will also be provided with a basement storage room.
The model home is located in Geumo-dong, Uijeongbu-si, Gyeonggi Province, near the project site. Move-in is scheduled for November 2027.
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