Before the Sale Prices Rise Further...The Buzz Around the Launch of 'Jeongeup Prugio The First' Sales Heats Up

- Last Year, Nationwide Average Sale Price Exceeded 15 Million KRW per 3.3㎡
- Considering Soaring Construction Costs and Inflation... Pressure for Sale Price Increase Remains

Last year, the average apartment sale price per 3.3㎡ nationwide rose by up to 20% compared to the previous year, surpassing 15 million KRW for the first time. The increase rate was steeper in the Seoul metropolitan area than in other regions. Especially with rising inflation, it is expected that sale prices will continue to climb, intensifying competition among buyers aiming to secure apartments currently open for subscription.

According to data from Real Estate R114 REPS, the nationwide apartment sale price per 3.3㎡ last year was 15.21 million KRW, a 16.0% increase from 13.11 million KRW in 2021. Since surpassing 10 million KRW in 2016, prices have risen by 1.5 times in just over six years.

[Apartment Sale Price Trends]

By region, the Seoul metropolitan area saw prices rise from 14.76 million KRW in 2021 to 17.74 million KRW in 2022, a 20.1% increase, while other regions rose from 11.89 million KRW to 13.71 million KRW, a 15.3% increase during the same period.

The region with the highest price increase was Chungnam, where prices surged 27.2% from 9.72 million KRW to 12.37 million KRW. Seoul followed with a 24.1% jump from 27.89 million KRW to 34.74 million KRW. These areas saw significant price hikes mainly due to continued supply in places that avoided last year’s price ceiling policy.

Future sale prices are expected to rise further. From this month, the basic construction cost has increased by 2.05% in just three months amid intensifying inflation. Notably, ready-mixed concrete prices rose 15.2%, and plywood formwork surged 7.3% over the past three months.

A real estate industry official stated, “It is virtually impossible for apartments sold later in similar zones to be cheaper, and low sale prices may trigger risks such as construction cost disputes and delayed move-ins. For buyers considering home ownership, it is not an exaggeration to say that apartment sale prices are currently at their lowest.”

Accordingly, buyers’ interest is rising sharply in apartments currently open for sale. Especially with ongoing economic uncertainties such as PF risks and high interest rates, the possibility of reduced new supply is increasing, enhancing scarcity.

The hottest interest is in ‘Jeongeup Prugio The First’ in Jeongeup, Jeonbuk. It offers a total of 707 households, with special supply scheduled for the 20th and first-priority subscription on the 21st. Following the model house opening, about 12,000 visitors came over three days, maintaining strong interest. The contract deposit (first payment) is set at a fixed 5 million KRW, with no restrictions on re-subscription and unlimited resale allowed.

A sales official said, “Since the model house opened, customers who have seen the excellent product quality firsthand have given positive reviews, and most visitors proceed to consultations after viewing the units, showing very high interest.”

[Jeongeup Prugio The First Model House Interior]

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