Negative Premiums Are a Thing of the Past: Cheolsan Standard Unit Pre-Sale Price Hits 1.5 Billion Won... Pre-Sale Rights Trading Booms [Real Estate AtoZ]

Cheolsan Station Xi 84㎡ Now 200 Million Won Higher Than Two Years Ago
Gwangmyeong, Where Negative Premiums Were Common Until March, Sees Sharp Drop in Unsold Units
"Gwangmyeong, the 'Quasi-Seoul,'" Catches Up With Seoul's Pre-Sale Prices
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The price for standard-sized apartments in new developments set to be launched in Gwangmyeong, Gyeonggi Province, has soared to the 1.5 billion won range. This change has emerged as transactions have picked up and prices have started to rise in Gwangmyeong, where units with negative premiums were being sold as recently as earlier this year.

GS Construction has set the pre-sale price for "Cheolsan Station Xi," which will be supplied in Cheolsan-dong, Gwangmyeong, Gyeonggi Province starting from the 29th, at 42.5 million won per 3.3 square meters. For an 84-square-meter unit, this translates to between 1.515 billion and 1.576 billion won, marking the highest pre-sale price ever. Compared to the same-sized units at "Gwangmyeong Xi Hillstate SK View," which was recently launched at 1.235 billion won, the price is about 200 million won higher.

As the shortage of housing supply and sharp price increases in Seoul have driven more people to look for new homes in Gyeonggi Province, pre-sale prices in the region are rapidly catching up with those in Seoul. According to the Housing and Urban Guarantee Corporation (HUG), as of August, the pre-sale price per 3.3 square meters for private apartments in Seoul was 46.84 million won, up 8.64% (3.72 million won) from the same month last year. In Gyeonggi Province, the figure was 22.41 million won per 3.3 square meters, up by 1.13 million won year-on-year. Rising labor and raw material costs, as well as overall inflation, are also contributing to higher pre-sale prices.

With apartment transaction volumes in the Seoul metropolitan area increasing around March this year, the number of unsold units has dropped sharply. According to Real Estate R114, the number of unsold units in Gwangmyeong, Gyeonggi Province, fell by 98% from 238 in January this year to 85 in July. From the end of 2022 to the end of 2023, a surge of new supply hit Gwangmyeong. Amid high interest rates and the spike in supply, subscription rates were poor. This effect continued into early this year, with Trius Gwangmyeong even seeing pre-sale rights for 84-square-meter units being listed with a negative premium of 50 million won.

As the mood in the Gwangmyeong real estate market has shifted, transactions of pre-sale rights for soon-to-be-occupied complexes have become more active. In September alone, there were 16 transactions of pre-sale rights at Gwangmyeong Central I-Park. The pre-sale right for a 59-square-meter unit was sold for 1.04 billion won, setting a new record, while an 84-square-meter unit was sold for 1.28 billion won. At Gwangmyeong Xi Hillstate SK View, five pre-sale rights changed hands in September. On September 24, a 59-square-meter pre-sale right was traded for 1.03975 billion won, more than 100 million won higher than the previous transaction price of 926.75 million won. An 84-square-meter pre-sale right was traded for 1.1803 billion won in early August. The Cheolsan Xi The Heritage complex, considered the flagship development in Gwangmyeong, saw a 59-square-meter unit sold for 1.15 billion won on August 28.

Perspective view of Cheolsan Station Xi. Provided by GS Construction

Construction companies are also rushing to finalize their sales schedules. Hyundai Engineering & Construction will launch "Hillstate Gwangmyeong 11 (tentative name)," a redevelopment of the Gwangmyeong 11R district, next month. Located in Gwangmyeong New Town, it boasts an excellent location and is a large-scale complex with 4,291 units. The pre-sale price per 3.3 square meters is expected to approach 45 million won.

Kwon Il, head of research at Real Estate Info, commented, "Gwangmyeong has strong competitiveness due to its easy access to Gangnam via Line 7, and the locations of the upcoming complexes are better than previous projects, with most unsold units already absorbed. Therefore, pre-sale results are expected to be favorable. For buyers focused on profitability, purchasing pre-sale rights from existing projects may be a better option. However, the price gap with Gwangmyeong 11R district and Cheolsan Station Xi is likely to remain," he analyzed.