- Demand Expected to Shift from Heavily Regulated Seoul Metropolitan Area to Unregulated Local Pre-sale Markets
- Interest Grows in "Changwon Megacity Xi & Weave" Thanks to Interest-Free Interim Payments and No Mandatory Occupancy Requirements
Following the government's announcement of strengthened real estate finance regulations, there is a noticeable shift in interest among genuine homebuyers toward local markets, which have a relatively more relaxed financial environment compared to the Seoul metropolitan area where lending regulations are concentrated. In particular, there is growing anticipation that residential complexes currently being sold in local areas will benefit from this situation.
On June 27, the Financial Services Commission and the Ministry of Land, Infrastructure and Transport announced a plan to strengthen household debt management, which includes significantly tighter mortgage loan regulations focused on the Seoul metropolitan area and regulated regions. The new measures include: a 600 million won cap on total mortgage loans in regulated areas; shortening the deadline for disposing of existing homes when homeowners switch properties from two years to six months; and reducing the loan-to-value (LTV) ratio for first-time homebuyers from 80% to 70%.
Additionally, in mid-June, the government announced through a supplementary budget plan its intention to purchase 10,000 unsold homes and establish a 1 trillion won real estate bridge loan to support project financing (PF). With policies aimed at resolving unsold housing and overlapping lending restrictions, a positive outlook is expected for the local real estate market.
Amid these developments, the Doosan Construction consortium's "Changwon Megacity Xi & Weave" project, currently being sold in Changwon, Gyeongnam, is nearing a complete sell-out. The complex consists of 17 buildings ranging from four basement levels to 37 above-ground floors, totaling 2,638 units. Of these, 2,041 units with exclusive areas of 54 to 102 square meters are available for general sale. Currently, contracts are being signed on a first-come, first-served basis, allowing buyers to select their desired building and unit without a subscription savings account.
The first contract payment is set at a flat rate of 10 million won, and 60% of the interim payment is offered interest-free. This structure, which emphasizes a high proportion of interim payments, is expected to attract genuine buyers by reducing the actual financial burden. Notably, there are no restrictions on re-winning, resale, or mandatory occupancy requirements.
The competitiveness of the sale price is also drawing attention. While the estimated sale price based on the management and disposal plan for the nearby Gyeonghwa residential redevelopment project is about 13.8 million won per 3.3 square meters, Changwon Megacity Xi & Weave is priced at approximately 13.6 million won per 3.3 square meters.
The location is also considered advantageous. The government plans to lift greenbelt restrictions in four areas of Gyeongnam, including three in Changwon and one in Gimhae, and promote industrial complex and urban development projects. Once these projects are completed, they are expected to generate approximately 10.7 trillion won in production inducement effects and create about 20,589 jobs.
Transportation infrastructure is also improving. The opening of the Guigok-Haengam national road bypass has reduced the time to cross Jinhae’s urban area from 16 minutes to 6 minutes, and the opening of the Seokdong Tunnel has shortened commuting times by about 20 minutes. Once the Yanggok Interchange improvement project, scheduled for completion in 2026, is finished, travel to downtown Changwon and the national industrial complex is expected to take around 10 minutes.
The model home is located in Jungang-dong, Seongsan-gu, Changwon Special City, Gyeongsangnam-do, and move-in is scheduled for December 2028.
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