Race to Secure "Harrington Square Sanggok Station" Amid Soaring Sale Prices

- Construction Costs Rise 10% in One Year, Burden Increasing by Tens of Millions of Won
- Market Trend Strengthens: Now Is the Lowest Point for Sale Prices

The prices of apartments for sale in the Seoul metropolitan area are soaring due to a combination of factors, including rising raw material costs, increased labor expenses, and higher interest rates. Experts predict that this upward trend will not subside anytime soon and is likely to accelerate further. In this environment, both genuine homebuyers and investors looking to grow their assets are moving to secure apartments in prime locations within the metropolitan area.

In particular, Hyosung Heavy Industries' "Harrington Square Sanggok Station," which is being highlighted as a new landmark complex representing Bupyeong-gu, Incheon, is attracting attention as the "last opportunity" to benefit from future value appreciation despite soaring sale prices, thanks to its prime location right next to a subway station and its status as a large-scale brand town.

◆ Construction costs in the metropolitan area approach 7 million won per 3.3㎡... "Prices may rise by another 100 million won in the future"

According to the Housing and Urban Guarantee Corporation (HUG), as of March this year, the average sale price of privately developed apartments in the metropolitan area was 28.37 million won per 3.3㎡, up 10.4% from 25.69 million won during the same period last year. For a standard exclusive area of 84㎡ (34 pyeong), this translates to an increase from about 880 million won to 980 million won in just one year?a rise of approximately 100 million won.

The problem is that this trend of rising sale prices is unlikely to end in the short term and may intensify further in the future. The strengthening of various building regulations and skyrocketing construction costs are fueling additional increases in sale prices.

First, starting in June, the obligation to construct zero-energy buildings will be extended to privately developed apartments, making further price hikes inevitable. Industry sources expect that the mandatory zero-energy building certification will add at least 3 million won per household for an 84㎡ unit. However, even this figure is considered conservative, given the recent surge in material and labor costs.

On top of this, with construction costs rising rapidly, most agree that it will be difficult for sale prices to come out any lower. In fact, according to data from the Housing Environment Research Institute, the average construction cost for redevelopment and reconstruction projects in the metropolitan area last year was 6.732 million won per 3.3㎡, and this figure has been increasing every year.

Recently in Seoul, reconstruction projects such as Jamsil Jinju (8.11 million won), Cheongdam Samik (7.65 million won), and Banpo Jugong Complex 1 District 3 (7.86 million won) have all increased their construction costs, with the era of 10 million won per pyeong just around the corner. In nearby areas like Eunhaeng Jugong in Seongnam, Gyeonggi Province, construction costs have been proposed at 6.98 million won per pyeong, indicating that the surge in construction costs is not limited to Seoul itself.

A real estate expert commented, "Even in complexes in Banpo and Jamsil, Seoul, where sales have already been completed or are underway, there is ongoing conflict between contractors and associations over additional construction costs. As a result, project stakeholders are increasingly likely to factor in anticipated future increases in construction costs when setting sale prices, in order to mitigate these risks from the outset."

In particular, for redevelopment projects such as Sanggok 6 District (Zaie Hills Haneulchae) in Bupyeong-gu, Incheon, industry consensus is that construction costs are already estimated at around 7 million won per 3.3㎡, making it unlikely that sale prices will be set below 25 million won per 3.3㎡. Given the steep annual increase in sale prices (about 10%), there is a strong possibility that, even excluding option costs, the price for an 84㎡ unit will surpass 900 million won.

The head of a real estate agency located in Bupyeong-gu stated, "With multiple factors driving sale prices higher, we expect the price for an 84㎡ unit to rise by tens of millions of won starting in the second half of this year. In particular, as conflicts over construction costs intensify in redevelopment projects, leading to construction halts and other issues, it will be difficult to proceed without raising sale prices. As a result, buyers are increasingly aware that they need to secure landmark properties before prices climb even higher."

◆ Even in Bupyeong, Incheon, sale prices below 25 million won per 3.3㎡ are unlikely?race to secure landmark properties!

In this context, there is growing news that more buyers are seeking to secure "Harrington Square Sanggok Station," which is expected to become a landmark representing Bupyeong, Incheon. The sale price for this complex is around 23 million won per 3.3㎡, and with future redevelopment projects in Bupyeong expected to be priced even higher, this is being seen as the last opportunity for homebuyers in the area.

This popularity has been proven by the actual subscription results. Within just three days of the model home opening on the 18th, about 20,000 people visited, and inquiries continued even on weekdays. The subscription competition rate reached as high as 7.6 to 1, which is considered solid given the recent trend of unsold apartments in the metropolitan area.

Customers in particular responded positively to the product features of Harrington Square Sanggok Station. The landscaping within the complex is being specially designed and constructed by the GSS (Green Space Solution) team of Samsung C&T Resort Division, attracting significant attention. Through collaboration with the unrivaled Samsung C&T Resort Division, the complex will feature unique designs rarely found in ordinary apartments, while systematic management will create a vast park-style apartment where residents can enjoy a true "green premium."

Specific design features include a plaza with modern landscaping and water features such as ornamental ponds along the walkways, as well as a tea house for residents to relax in a pleasant environment. The "Monkey Valley" playground is a themed play area reminiscent of a miniature Everland, where children can play with water. "Harrington Water Avenue" will feature decked rest areas and ground fountains, and the entire complex is planned with a circular walking trail, including various themed paths such as cherry blossom and autumn foliage walks.

One customer who visited the model home said, "I believe landscaping determines the future asset value of an apartment. The distinctive, specialized design here is incomparable to other nearby apartments. Living here would be pleasant every day, and it would be a great place for children to play."

The differentiated product lineup also stands out. Engineered stone kitchen countertops and Hanssem furniture are provided as standard, adding a variety of specialized interior features. When the balcony is expanded, German-made system windows are installed, and especially, built-in glass railings provide unobstructed exterior views. High-end bathroom fixtures (provided with balcony expansion) are also included.

The 59㎡ unit type, in particular, received positive feedback. With balcony expansion, a sliding built-in wardrobe is provided in the master bedroom to maximize space utilization. The layout includes three bedrooms and two bathrooms, and with the balcony expansion, the usable area is significantly increased, with specialized storage solutions further enhancing space efficiency. This layout is especially well-suited for newlyweds or three-person families seeking to live in the unit themselves.

The large service area is another advantage. While the typical service area for an 84㎡ unit is 26?33㎡, Harrington Square Sanggok Station offers 42?48㎡, making it much larger. In terms of usable space, it is comparable to the exclusive 96㎡ units in nearby complexes. Additionally, the 84㎡ type features various layouts such as four-bay, alpha room, and three-sided balcony structures, further improving space efficiency.

Meanwhile, Harrington Square Sanggok Station will be built in Sanggok 1-dong, Bupyeong-gu, Incheon (as part of the Sanggok redevelopment project), with a total of 2,475 units in buildings up to 45 stories high, of which 1,248 units will be available for general sale. Contracts will be signed from Monday, May 12 to Friday, May 16. Units can be resold one year after the announcement of successful applicants, and the down payment has been set at 5% of the sale price to reduce the initial financial burden. The model home is located on the project site in Sanggok 1-dong, Bupyeong-gu, Incheon.