Price Ceiling System for Apartment Complexes, Basic Construction Cost Ceiling Increased by 2.19%

[Asia Economy Reporter Yoo In-ho] The upper limit of the standard construction cost used to calculate the sale price of apartment buildings subject to the price ceiling system will increase by 2.19% starting from the 15th.

The Ministry of Land, Infrastructure and Transport announced that it will notify the standard construction cost on the 15th, considering price changes in labor costs, construction materials, and others since the announcement in March.

Accordingly, the upper limit of construction cost per supply area (3.3㎡) will be adjusted from 6,336,000 KRW to 6,475,000 KRW.

The upper limit of construction cost per 3.3㎡ was calculated assuming a building of 16 to 25 floors or less, exclusive area of 85㎡, supply area of 112㎡, and basement floor area per household of 39.5㎡.

The Ministry regularly adjusts the standard construction cost every six months, on March 1 and September 15, reflecting factors affecting construction cost fluctuations.

The main reasons for the recent increase in the standard construction cost are the rise in labor costs and the resulting increase in indirect construction costs. The revised notification will apply to those who apply for approval of resident recruitment from the 15th onward.

The upper limit of the standard construction cost is applied when calculating the sale price of housing subject to the price ceiling system (land cost + land cost additional cost + standard construction cost + construction cost additional cost).

Since the sale price is determined comprehensively considering sale feasibility and surrounding market prices, the actual impact on the sale price is expected to be lower than the increase in the standard construction cost.

This content was produced with the assistance of AI translation services.