"High-Priced Apartments in the Seoul Metropolitan Area Sell Out One After Another... 'Prices May Rise Further'"

Uiwang Indeogwon Purseubiel Achieves 100% Contract Rate
Housing Market Revived by Real Estate Regulation Easing

Apartment complexes in the Seoul metropolitan area that sparked controversy over "high pre-sale prices" are selling out one after another. Amid a rebound in housing prices due to large-scale real estate deregulation, this is interpreted as a result of the growing perception that "today's pre-sale price is the cheapest" due to rising construction costs.

According to Daewoo E&C on the 1st, "Indeogwon Firstviel," located in Naeson-dong, Uiwang, Gyeonggi Province, achieved a 100% contract rate on the 27th. It succeeded in selling out in just 9 days after the official contract started on the 19th.

The pre-sale price of the complex's "national standard" unit with an exclusive area of 84㎡ ranges from 1,014 million to 1,079 million KRW. Adding the balcony expansion cost of 23 million KRW, the maximum price exceeds 1.1 billion KRW. This is more expensive than Huigyeong Xi Decencia, which was recently sold in Dongdaemun-gu, Seoul (priced in the 900 million KRW range). Nevertheless, thanks to the recent continuous enthusiasm for pre-sales in the metropolitan area, all units found owners in a short period. Following the strong sales of Indeogwon Firstviel, nearby unsold apartments are also being sold quickly. Indeogwon Xi SK View has completed contracts for all units except for the 49㎡ and 112㎡ units.

In Gwangmyeong, Gyeonggi Province, where new town pre-sales are in full swing, there was also a case of sellout despite controversy over high pre-sale prices. Gwangmyeong Xi The Sharp Forena, which was pre-sold in April, also achieved a 100% contract rate. The 84㎡ units were priced between 982.9 million and 1,045.5 million KRW, but all were sold within a month. Cheolsan Xi The Heritage (reconstruction of Cheolsan Jugong 8 and 9 complexes), which was pre-sold near Gwangmyeong-dong in Cheolsan-dong at the end of last year, was initially unsold but eventually sold out.

Perspective view of Indeogwon Persviel in Uiwang, Gyeonggi

The recent sellout trend of high pre-sale price complexes appears to be a result of the revived subscription market following the 1.3 real estate measures. As various loan and tax regulations were eased, housing prices rebounded, and as the subscription barriers lowered, demand flooded the pre-sale market. The rising construction costs due to recent increases in raw material prices also contributed to achieving high contract rates.

However, there are concerns that this sellout trend could further fuel high pre-sale prices in the future. When there is a high risk of unsold units, developers consider rationalizing pre-sale prices to increase contract rates, but in the opposite case, bold pricing is also possible. Currently, except for Gangnam-gu, Seocho-gu, Songpa-gu, and Yongsan-gu in Seoul, there are no areas where the pre-sale price ceiling system is applied.

An official from a major construction company said, "As high pre-sale price complexes, which aimed to complete sales before completion, sold out in a short period, there are even internal discussions that the pre-sale prices might have been set too low."

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