SH Strengthens Post-Sale System... Resident Recruitment at 90% Completion Point

[Asia Economy Reporter Kim Hyemin] Seoul Housing and Communities Corporation (SH Corporation) has decided to strengthen the post-sale system. From now on, housing units will be offered to residents when the construction progress reaches 90%.

On the 24th, SH Corporation announced that it would strengthen the previous supply timing from 60-80% construction progress to 90%. This is a pledge made by Seoul Mayor Oh Se-hoon. SH Corporation is the first to recruit residents at the point when construction progress reaches 90%.

Mayor Oh announced the policy of "post-sale implementation at 80% completion" when he was the mayor of Seoul in September 2006, and based on this, SH Corporation supplied a total of 87,416 households through post-sale by 2020.

SH Corporation explained that recruiting residents at 90% construction progress is for the safety of the residents. While pre-sale applicants subscribe based only on the provider’s perspective drawings or model houses, post-sale allows applicants to directly inspect the construction site, enabling a more rational choice. SH Corporation added that since the supplier bears the risks of defective construction and unsold units in post-sale, it can induce voluntary safety and quality management.

Post-sale reduces the interest cost on interim payments because the interim payment amount is smaller than in pre-sale, and since the sale price is determined closer to the move-in date, it can also prevent consumer damage caused by housing price declines at the time of move-in.

Along with strengthening the post-sale system, SH Corporation plans to implement a system to extend the move-in and final payment periods to ease the financial burden on buyers.

Kim Heondong, President of SH Corporation, stated, "If the post-sale system is introduced, even if a defective disaster occurs, since the units have not yet been supplied, citizens will not suffer property damage, and the damage will be borne by the supplier or contractor. Strengthening the post-sale system marks the beginning of safety management and responsible management to prevent defective construction and disasters."

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