“No Reasonably Priced New Homes?” ... A Direct Hit in the “700 Million Won Standard-Apartment Era”

[Financial News] The nationwide average presale price of a standard-sized apartment has exceeded 700 million won.
According to data from Real Estate R114 released on the 9th, the average presale price of apartments nationwide this year was 21.88 million won per 3.3 square meters. Converted to the standard 84-square-meter unit, that amounts to 722.04 million won. In effect, presale prices for new apartments nationwide have entered the “700 million won standard-apartment era.” The Korea Housing & Urban Guarantee Corporation (HUG)’s data on private apartment presale prices also show continued upward pressure from rising costs, with the nationwide average price up about 4.2% year on year as of September.
As presale prices rise steeply and the burden of financing costs grows due to lending restrictions and higher interest rates, actual homebuyers have become much more discerning in the subscription market. This year (January–October), the average first-priority subscription competition ratio across 206 apartment projects nationwide was 5.57 to 1, down from 7.08 to 1 in the same period last year. Rather than a simple premium for a new build, a “value-for-money presale price” that buyers can afford through signing the contract and paying the remaining balance has become the decisive factor in a project’s subscription results.
Applications have indeed poured in for projects offered at prices that are reasonable compared with market rates. “Cheongju Gagyeong IPARK Complexes 7 and 8,” launched in Cheongju, North Chungcheong Province, last October, recorded a high average competition ratio of 121.24 to 1. “Anyang Everfore Jayeon & e-Pyeonhansesang” in Anyang-si, Gyeonggi Province, also successfully filled its units last May, highlighting its excellent location and reasonable presale prices.
An industry source said, “Recently, prospective buyers have clearly been scrutinizing the risk of securing financing after winning an allotment.” The source added, “Projects that maintain past presale price levels or are offered below surrounding market prices ease the financial burden and offer the prospect of holding their value in the future, so they will become even more popular.”
Against this backdrop, major new developments nationwide that are touting reasonable presale prices and exceptional financing incentives will begin sales in earnest on the 9th, starting with applications for special allocations.
First, KT Estate will accept applications for special allocations for “Namchuncheon Centerville” on the 9th. The complex is being built on the former site of the Haengbok Wedding Hall in Chuncheon, Gangwon State. It will have six basement levels and 39 above-ground floors, with 264 units measuring 59–84 square meters in exclusive area. Prices have been set well below those of nearby occupied complexes and at around the level of local presale prices from about three years ago, substantially reducing the burden on buyers. The terms include a 5% contract deposit (an initial payment of 10 million won); there are no resale restrictions, restrictions on winning another subscription, or mandatory residence period. Lotte Mart, Gangwon University Hospital, Bongui Elementary School and Chuncheon Middle School are nearby, making it a good place to live.
LOTTE Engineering & Construction Co., Ltd. is selling “Hwaseong Hyangnam LOTTE Castle Signature” in Hyangnam-eup, Hwaseong, Gyeonggi Province. The large complex will comprise 1,542 units across 17 buildings, with up to 29 floors above ground and three basement levels; exclusive areas will range from 84 to 120 square meters. Buyers will receive a 5% contract deposit and an interest-free period for the full amount of their interim payments. The Hyangnam Pharmaceutical General Industrial Complex and Balan Industrial Complex are nearby, and the development will include specialized community facilities such as an indoor swimming pool.
ShinAn will accept applications for special allocations on the 9th for “Guri Galmae Station Area ShinAn InsVill Descent,” which it is building in Galmae-dong, Guri, Gyeonggi Province. The project, on publicly developed land, will comprise 213 privately supplied units across four buildings, with up to 18 floors above ground and two basement levels. Units will have exclusive areas of 75–84 square meters, and the price ceiling system applies. Residents will have access to planned sites for a kindergarten and elementary and middle schools in front of the complex, nearby green spaces, and the amenities of Byeollae New Town.
Kumho Engineering & Construction Co., Ltd. will hold applications for special allocations on the 9th for “Hyeonggok Central Atera” in Hyeonggok-dong, Gumi, North Gyeongsang Province. Of the 770 total units, 135 units with an exclusive area of 59 square meters are being offered for general sale. The project offers reasonable presale prices compared with those of major new apartments in Gumi, along with convenient transport links including Gumi Station and an interchange, as well as Hyeongil Elementary and Middle Schools and a renowned private academy district.
KYE-RYONG CONSTRUCTION INDUSTRIAL CO., LTD. will accept applications for special allocations on the 9th for “ELIF Siheung The Prime,” which it is building in Geomo-dong, Siheung, Gyeonggi Province. Of the 338 units, all with an exclusive area of 84 square meters, 304 are being offered for general sale. The price ceiling system applies, and the 5% contract deposit reduces buyers’ initial financial burden. Located near Singil Oncheon Station on Seoul Subway Line 4 and the Suin–Bundang Line, the project is drawing attention as a residential area serving the Banwol-Sihwa National Industrial Complex.

[email protected] Jeon Min-kyung Reporter