Soaring Pre-sale Prices Lead to Pre-sale Price Surpassing Transaction Price
Perception Grows That "Now Is the Cheapest Time"
Non-regulated Areas Adjacent to Seoul, Such as Incheon, Draw Attention
New Pre-sale Complex 'City OCEL Complex 8' Gains Interest
Amid the recent sharp rise in pre-sale prices, residential complexes in regions adjacent to Seoul, such as Incheon, are attracting attention. These areas offer convenient commuting to Seoul, but their pre-sale prices remain lower than those in Seoul. Additionally, as they are not regulated zones, homebuyers face relatively less financial burden.
According to data from Real Estate R114, the average pre-sale price per 3.3 square meters for privately developed apartments nationwide last year was 20.69 million won. This figure surpasses the average transaction price per 3.3 square meters for apartments nationwide during the same period, which was 19.18 million won. It marks the first time in 15 years, since 2009, that pre-sale prices have exceeded transaction prices.
The upward trend in pre-sale prices continues. According to the Housing and Urban Guarantee Corporation (HUG), as of the end of September this year, the average pre-sale price for private apartments nationwide over the past year was approximately 5.91 million won per square meter. This represents an increase of about 3.76% compared to the same month last year. In particular, Seoul recorded around 13.78 million won per square meter. When converted to the standard exclusive area of 84 square meters, this amounts to approximately 1.549 billion won, which is more than 40 million won higher than last year’s 1.5042 billion won.
With pre-sale prices soaring, genuine homebuyers are rushing to secure homes and are also turning their attention to areas adjacent to Seoul, such as Incheon. These regions offer easy commuting to Seoul within the metropolitan area, are not included in the newly designated regulated zones under the October 15 real estate measures, and have relatively affordable pre-sale prices for new apartments.
In fact, in September this year, Incheon recorded a pre-sale price index of 177.2 per square meter, the lowest among metropolitan areas. In contrast, Seoul recorded 224.7 and Gyeonggi Province 217.4 during the same period, both above the overall metropolitan average of 210.9.
An industry insider commented, "Even the standard construction cost, which affects the pre-sale price ceiling, is steadily increasing with each regular announcement. The rise in raw material prices and labor costs are also contributing factors, so the upward trend in new apartment prices is expected to continue for some time."
Against this backdrop, consumer interest is focusing on the upcoming supply of new residential complexes in City OCEL, which is being developed as a mini new town-scale mixed-use city within Incheon.
HDC Hyundai Development Company, Hyundai Engineering & Construction, and POSCO E&C plan to launch pre-sales for 'City OCEL Complex 8' in November in the joint 2BL area of the Yonghyeon-Hakik 1 Block urban development zone in Incheon. The complex will consist of seven buildings, ranging from three basement levels to 46 floors above ground, with exclusive areas of 59 to 136 square meters, totaling 1,349 units.
The complex boasts an excellent location. First, it is situated within 500 meters of the planned Hakik Station on the Suin-Bundang Line, making it a prime station-area location with walkable access to the station. Once the station opens, residents will be able to travel directly to major Seoul areas such as Gangnam-gu Office, Seoul Forest, and Suseo without transfers. The complex will also be connected to most lines in the metropolitan area, including Subway Line 1, Songdo Station (KTX), and the Gyeonggang Line (Wolgot-Pangyo), making travel throughout the metropolitan region convenient.
City OCEL, as a premium mixed-use city, also boasts outstanding living infrastructure. The complex offers an excellent educational environment, with an elementary school (planned) nearby and middle and high schools (planned) within walking distance. In addition, the large-scale commercial, cultural, and business zone 'Star OCEL' within City OCEL is easily accessible. Star OCEL will feature a variety of living, shopping, and cultural facilities, including the Incheon Museum Park (under development), a movie theater, and shopping centers.
The residential environment is also pleasant. In front of the complex, a Grand Park of about 370,000 square meters-comparable in size to Songdo Central Park-is planned. Namhang Neighborhood Park, Munhak Mountain, and Gaetgol Retarding Basin are also nearby. Furthermore, a pedestrian path (Link OCEL) connecting the Grand Park and City OCEL will be created, making it easier to enjoy both a pleasant natural environment and a one-stop cultural and arts district.
Moreover, Incheon, where the complex is located, is expected to benefit from being outside real estate regulatory zones. Under the government's October 15 real estate measures, all of Seoul and 12 areas in Gyeonggi Province have been designated as regulated zones, tightening requirements for subscriptions and loans. In contrast, Incheon remains unregulated, so the LTV for interim payment loans stays at 60%, making it relatively easier for buyers to secure homes.
Additionally, City OCEL, which is being developed through an urban development project, is expected to evolve into a self-sufficient, fully developed city upon completion. When the complex is occupied, residents will be able to enjoy the abundant infrastructure of both City OCEL and its surrounding area, further enhancing the value of the location and residential convenience in the future.
Meanwhile, the model home for 'City OCEL Complex 8' will be located in the Aam-daero area of Michuhol-gu, Incheon Metropolitan City.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
