Opportunity to Buy a Home in Seoul with '20 Million Won'... Interest in Fixed-Rate and Interest-Free Interim Payment Complexes

Apartments offering fixed deposit amounts and interest-free interim payments are gaining attention in the sales market. This is due to the increased burden on homebuyers caused by high interest rates and rising construction costs. In response, construction companies are targeting buyers by offering financial benefits such as interest-free interim payments.

The fixed deposit system requires paying a predetermined amount, such as 10 million KRW, instead of the usual 10% of the sale price as a deposit. Interest-free interim loans mean that the project entity covers the interest on interim payments, which typically amount to about 60% of the sale price. Considering that the average interest rate on interim loans is around 5-6%, if the sale price is 900 million KRW, approximately 40 million KRW in loan interest can be saved.

Visitors are gathering at the model house of 'Eunpyeong Xi The Star' in Eunpyeong-gu, Seoul, which offers benefits such as fixed contract deposits and interest-free interim payments, to look around the apartment model.
[Photo by GS Construction]

According to financial and real estate industries on the 5th, the variable interest rates for mortgage loans from the five major commercial banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?were recorded at 4.1% to 6.68% annually (as of the 4th). The variable mortgage rates were 3.83% to 5.92% on the 17th of last month and 4.07% to 6.09% on the 24th of the same month.

As loan interest rates rise, more buyers are showing interest in new complexes offering financial benefits that reduce funding burdens.

The most notable project is ‘Eunpyeong Xi The Star’ in Eunpyeong-gu, Seoul, constructed by GS Construction. It offers a fixed deposit of 20 million KRW and provides full interest-free interim payments. Simply put, after paying 20 million KRW, no additional costs are incurred until move-in.

The scheduled move-in date in May 2026 is also an advantage. The unit comes standard with hardwood flooring, European porcelain tiles, a system air conditioner, Sysclean, an Objet refrigerator, and a dishwasher. The complex consists of a total of 312 households, currently offering units with a net area of 49㎡. Each household can park at least one vehicle, and features such as two bathrooms and ample storage space stand out.

A sales representative said, “Recently, Seoul’s subscription rates have been extremely high, reaching hundreds to one, and with the improving real estate market atmosphere, contracts from interested customers are steadily progressing. Opportunities to secure branded complexes in Seoul under such reasonable conditions are rare; the officetel units have already been fully contracted, and the small housing units with some remaining units for sale are expected to sell out soon.”

Elsewhere in the metropolitan area, ‘Gwangmyeong Central I-Park’ in Gwangmyeong, Gyeonggi Province, also offers a first fixed deposit of 10 million KRW. In Incheon, ‘Forena Incheon Hakik’ has reduced the first deposit to 10 million KRW and lowered the deposit to 5%, significantly easing the initial financial burden. Publicly supplied apartments in Incheon Yeongjong A33, 37, and 60 blocks are offered without interim payments, eliminating the need for interim loans. Contract holders only need to pay 90% of the remaining balance upon move-in.

Real Estate Info’s Research Team Leader Kwon Il said, “Even a 10% deposit of the sale price requires several tens of millions of KRW upfront, often handled through loans such as overdraft accounts. Interest rates on interim loans can differ by nearly 0.5 percentage points even within the same area depending on the bank, causing many complaints. From the buyer’s perspective, attention should be paid to the actual benefits of complexes offering financial benefits that allow home purchase with minimal costs.”

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