"For Those Without Money, Come Here" The Reversal of This Neighborhood Once Called a Graveyard

[Financial News] Due to the government's tightening of loan regulations in the metropolitan area, the local real estate market is being re-evaluated. In particular, places that alleviate the burden on home buyers through various financial benefits are expected to draw attention.
According to the Housing Industry Research Institute on the 18th, the national housing business sentiment index in June this year was 93.5, up 3.9p from the previous month. On the other hand, during the same period, the housing business sentiment index in the metropolitan area fell by 6.1p. This is interpreted as being influenced by the strengthening of loan regulations in the metropolitan area.
On the other hand, the local real estate market is showing a rapid recovery. As of June this year, the local housing business sentiment index was 92.5, up 6.1p from the previous month. This is interpreted as being influenced by the expectation of the government's measures to resolve unsold properties in the provinces, along with the fact that it is free from high-intensity loan regulations.
In this atmosphere, various financial benefits are being offered in the provinces to capture the hearts of home buyers. Fixed contract payment, interest-free intermediate payment, and free balcony expansion are representative examples.
Financial benefits provide an opportunity to reduce the burden of preparing housing funds while also seeing a reduction in the sale price by tens of millions of won. The main content of the fixed contract payment is to alleviate the size of the contract payment, which is generally set at 10-20% of the total sale price. Some also defer the period of additional contributions until occupancy. From the perspective of home buyers, it reduces the burden of preparing initial funds.
Interest-free intermediate payment is a method in which the construction company bears the interest on the intermediate payment, which usually accounts for 60%. The advantage is that there are no additional costs incurred until the balance is paid after only paying the contract payment. According to the financial sector, the mortgage loan interest rate as of the first quarter of this year is 4.2% per annum. This means that interest costs amounting to tens of millions of won can be reduced.
Free balcony expansion is the same. According to the 'Economics of Balconies' report published by Hana Financial Management Research Institute, if the balcony is expanded from 15㎡ to 30㎡ based on an apartment with an average price of 6 million won per ㎡, it is analyzed that there is a residential value increase effect of about 75 million won.
As these financial benefits breathe life into the local real estate market, attention is focused on complexes launching sales in the second half of the year.
SK Ecoplant is selling 'Depain Gwang-an' on a first-come, first-served basis in Gwang-an-dong, Suyeong-gu, Busan. With a total of 1,233 households, some units of 59㎡, 78㎡, and 84㎡ are currently available. This complex applies a fixed contract payment of 5% or 10 million won, and there is no burden of additional payments until occupancy after paying the contract payment. It also offers various exceptional benefits such as interest-free intermediate payment and free balcony expansion. It is a super-station apartment located within a 2-minute walk from Gwang-an Station on Busan Line 2, and nearby are Hoam Elementary School, Suyeong Middle School, and Dong-a Middle School, making it a school district. Various landscaping facilities and children's playgrounds are provided to maximize the comfort of the residents' living environment, and abundant green spaces are formed around Geumryeonsan and Hwangnyeongsan. In particular, as the mixed-use complex of Company L in Haeundae, Busan is priced at 4.4 million won per pyeong, it is attracting more attention. It is also expected that the mixed-use complex of Company S in Namcheon-dong, Busan will be priced at 5.2 million won per pyeong.
In Sinjeong-dong, Nam-gu, Ulsan Metropolitan City, DL E&C is selling 158 units of 'e-Pyeonhansesang Sinjeong Skyheim' with an exclusive area of 84㎡. Various benefits are provided to reduce the financial burden on actual demanders, such as full interest-free intermediate payment and free balcony expansion.
In Gyeonso-dong, Gangneung-si, Gangwon Special Self-Governing Province, Miraedo Construction is selling 561 units of 'Gangneung Moa Miraedo Ocean River' with an exclusive area of 84-100㎡. This complex offers various financial benefits such as a contract payment of 5 million won (first installment), interest-free intermediate payment, and free balcony expansion.

ming@fnnews.com Jeon Min-kyung Reporter