[Reporter’s Notebook] The Sale Prices Have Risen Too Much... Let’s Remove the ‘Bold Price’

"Is the sale price of the national standard 84㎡ apartment over 1.2 billion KRW?" As simultaneous redevelopment takes place in Gwangmyeong New Town, the leading 4th district set a sale price higher than in Seoul, turning online communities into battlegrounds.

The corners of the mouths of New Town owners lifted. A member of the 2nd district union met in Gwangmyeong New Town said, "Last year, the expected sale price for 84㎡ was 800 million KRW, so it was good to postpone the sale to the second half of this year," expressing relief, and a member of the 5th district union said, "We can make up for the nearly 30% increase in construction costs through general sales," showing expectations. Of course, this is only possible if the 4th district receives an excellent subscription result.

On the other hand, prospective buyers waiting for the sale were stunned. Many criticized it as a "brazen sale price." Six months ago, the nearby Cheolsan Jugong 8th and 9th complexes reconstruction, which caused a 'high sale price controversy,' offered 84㎡ units at 1 billion KRW, which is 200 million KRW cheaper than this.

There are understandable aspects to the rise in sale prices. Land prices have risen, and raw material costs such as cement and labor costs have skyrocketed. The fact that construction companies avoid bidding for reconstruction and redevelopment projects shows this is no exaggeration. The construction cost index in April was 151.26 points, up 28% over the past four years.

However, there is no doubt that a "brazen price" is included in the sale price. Could this price have been set even when unsold units were still widespread in the metropolitan area? It would have been difficult if Gwangmyeong 1st district, Cheolsan 8th and 9th complexes, etc., had not sold out thanks to real estate deregulation. The old saying "sale prices are cheapest today" has resurfaced, increasing fear and driving up the brazen price.

We should not just look at the skyrocketing sale prices. This is not a call to bring back the sale price ceiling system. The government should induce the private sector to set realistic sale prices that at least exclude the brazen price.

Currently, the only means to check private sales is public sales. Opinions on the merits and demerits of the Lee Myung-bak administration's public housing policy vary, but it is true that cheap and abundant supply lowered private sale prices. Taking the 3rd New Town as an example, the supply can be increased by reducing the park and green space, which accounts for one-third, to one-fifth and increasing the floor area ratio. If a way to realize sale prices cannot be found, the common sense that those who work hard can own a home will no longer be common sense.

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