Soaring Pre-sale Prices Spur Urgency Among Homebuyers, Rush to Price-Capped Complexes

- Pre-sale Prices Rise and Lending Tightens... Homebuyers Without Properties Face Greater Challenges in Securing a Home
- As the Perception That "Today Is the Cheapest" Spreads, More Buyers Are Adding Price Ceiling Complexes to Their Wish Lists

Homebuyers in the Seoul metropolitan area without homes are facing increasing urgency. As the upward trend in pre-sale prices continues unabated and strong lending regulations, such as the June 27 real estate measures, are being implemented, there is a growing sense of crisis that securing a home may become even more difficult over time. As a result, demand is concentrating on complexes with price competitiveness, particularly those subject to the pre-sale price ceiling system.

According to the "Private Apartment Pre-sale Price Trends" report released by the Housing and Urban Guarantee Corporation (HUG), as of June this year, the average pre-sale price per 3.3 square meters for apartments in the metropolitan area was 29,154,000 won, up 7.72% from 27,065,000 won in the same month last year. When converted to the popular exclusive areas of 59 square meters and 84 square meters, buyers would need to pay at least 50 million won and 70 million won more, respectively.

The problem is that recent policy changes could further fuel the rise in pre-sale prices. According to the Ministry of Land, Infrastructure and Transport, from June, it has become mandatory for private apartments with 30 or more units to obtain Grade 5 certification for Zero Energy Buildings (ZEB). As the installation of high-performance insulation, double-glazed windows, and renewable energy facilities becomes compulsory to meet these standards, there are widespread expectations that construction costs will inevitably rise. In fact, the Architectural Institute of Korea estimates that construction costs to meet ZEB Grade 5 standards will increase by 26% to 35% compared to previous levels.

Separately, the increasingly stringent lending requirements are also raising concerns about the burden on buyers. Last month, the government announced a "household debt management plan" that limits mortgage loans in the metropolitan area to 600 million won and requires buyers to move in within six months of receiving the loan. Furthermore, from July 1, the implementation of the stricter Phase 3 stress DSR regulation has led to growing complaints among homebuyers without properties about the increasing difficulty of purchasing a home.

A real estate expert commented, "With pre-sale prices soaring almost daily and the government introducing strong lending regulations, there is a growing sense of frustration among homebuyers without properties, who now feel that owning a home is as difficult as reaching for the stars." The expert added, "Since the upward trend in pre-sale prices is expected to continue for the time being, polarization is also intensifying, with demand increasingly concentrated on complexes with price competitiveness."

In fact, the recent pre-sale market has seen a clear concentration of demand for complexes subject to the pre-sale price ceiling system. According to data from the Korea Real Estate Board's Cheongyak Home, all of the top three metropolitan area pre-sale complexes by subscription competition rate in the first half of this year were subject to the price ceiling. Notably, "Raemian One Perla," pre-sold in Seocho-gu, Seoul in February, recorded a three-digit competition rate of 151.6 to 1, followed by "Godeok Gangil Daeseong Berhill" (97.4 to 1) and "Dongtan Forepark Jayeon and Prugio" (71.4 to 1), all of which achieved high competition rates.

Accordingly, interest is rising among buyers in pre-sale complexes subject to the price ceiling system in the Brain City area. "Brain City Prugio" and "Pyeongtaek Brain City Sujain" are representative examples.

First, "Brain City Prugio," developed by Daewoo E&C in Joint Block 3 of Jangandong, Pyeongtaek City's Brain City General Industrial Complex, is a large-scale branded complex with 16 buildings ranging from two basement levels to 35 above-ground floors, offering a total of 1,990 units with exclusive areas from 59 to 119 square meters. Currently, contracts are being signed on a first-come, first-served basis with unit selection.

Brain City in Pyeongtaek, where the complex is located, is the largest advanced AI city for the Fourth Industrial Revolution in Gyeonggi Province. The world's largest semiconductor production base, Samsung Electronics Pyeongtaek Campus, is nearby, and the globally renowned KAIST Pyeongtaek Campus, also focused on semiconductors, is scheduled to be established within Brain City. Additionally, Ajou University Pyeongtaek Hospital, equipped with advanced medical facilities such as smart operating rooms, robotic medical equipment, AI-powered inpatient systems, data analysis, and integrated information management, is scheduled for completion in 2030. As a result, Brain City is expected to emerge as a new residential hub in Pyeongtaek, with integrated functions for industry, research, and healthcare.

"Brain City Prugio" is also considered to have the best location within Brain City. An elementary school (scheduled to open in September 2026) will be built directly in front of the complex, with a planned kindergarten site nearby, and Hankyung National University Pyeongtaek Campus within walking distance. The only central commercial district within Brain City is also adjacent, ensuring a convenient living environment for residents.

The complex also boasts excellent transportation connectivity. The Pyeongtaek-Jecheon Expressway and Gyeongbu Expressway provide easy access to all parts of the country, and the Pyeongtaek East Expressway is also planned. Pyeongtaek Jije Station, served by Metropolitan Line 1 and SRT, is 15 minutes away by car, and a new KTX line from Suwon is expected to stop there within the year. In addition, plans for extensions of the GTX-A and C lines are expected to drastically reduce travel times to Seoul and other parts of the metropolitan area.

"Brain City Prugio" will feature high-end community facilities befitting its status as the only top-tier brand apartment in Brain City. For the first time in Brain City, the complex will include an indoor swimming pool with four lanes, as well as a sauna, golf club, GX club, fitness club, and various spaces for residents' health and leisure. There will also be a greenery studio, reading room, study room, shared office, greenery cafe, and individual storage units for each household, among other community facilities.

The price competitiveness is also excellent. With the pre-sale price ceiling applied, the pre-sale price for the standard unit is set from the high 400 million won range. Considering the recent surge in average pre-sale prices in the metropolitan area, this is considered a reasonable level. Additionally, with a first contract deposit of 5 million won and other contract conditions designed to reduce the burden on buyers, the complex is drawing attention as an opportunity for homebuyers without properties to secure a home.

Furthermore, "Pyeongtaek Brain City Sujain" is also reportedly attracting significant interest from buyers. This complex, also known for its price competitiveness within Brain City, will be built on Joint Block 8, with six buildings ranging from two basement levels to 34 above-ground floors, offering a total of 889 units with exclusive areas of 59 and 84 square meters. Kindergarten and elementary school sites are adjacent, and new middle and high schools are also planned within Brain City. The surrounding area is expected to benefit from the planned central commercial district and infrastructure expansion as part of Brain City's development.

Additionally, of the total 5% contract deposit, the initial payment has been set at 5 million won to reduce the burden on buyers. A contract safety guarantee system has also been introduced, which retroactively applies additional benefits to existing contract holders if contract terms change after signing.

Meanwhile, the "Brain City Prugio" model home is located in the Jukbaek-dong area of Pyeongtaek, Gyeonggi Province.