Pre-sale Prices Rise Further... Prospective Buyers Show Interest in 'The Sharp Gwangyang Lake Centum'

by Jung Jin

Published 29 Jan.2024 13:20(KST)

[The Sharp Gwangyang Lake Centum Perspective]

The price increase rate of apartments for sale in 2023 recorded 18.4%, the highest since 2007 (23.3%), increasing the burden on buyers. The problem is that various costs affecting the sale price, such as land prices and construction costs, are rising, so the price increase is expected to continue.

According to the Korea Real Estate Board, the nationwide land price change rate, which recorded a decline of -0.036% in January last year, turned to an upward trend after March (0.008%) and recorded 0.148% in December. Although there were some fluctuations in the rate, land prices continue to rise.

According to the Korea Institute of Civil Engineering and Building Technology, the construction cost index for residential buildings recorded 153.37 in November last year, up 3.04% compared to 148.84 in the same month of the previous year (November 2022). The construction cost index is an index developed by the Korea Institute of Technology to estimate changes in direct construction costs involved in construction projects. A higher index means construction prices are rising.

Moreover, upcoming government’s stringent regulations are adding to concerns about rising sale prices. With the enforcement of the Serious Accident Punishment Act, construction companies face increased safety management costs, and recently, the industry is on alert due to strengthened standards for noise between floors. To meet these noise standards, floor thickness must be increased or new technologies applied, which increases project costs.

Due to these various reasons, pressure to raise sale prices is intensifying, and prospective buyers are rushing to secure new apartments quickly.

An industry insider said, “Although the extent of the increase varies depending on region and product, sale prices have been rising every year. There is no clear factor that would cause prices to fall next year.” He added, “If the housing construction market shrinks due to construction burdens, the scarcity of new apartments could actually increase.”

In this situation, POSCO E&C’s ‘The Sharp Gwangyang Lake Centum,’ which opens first-priority subscription on the 30th, is attracting attention. It is supplied at a reasonable price and offers various financial benefits.

‘The Sharp Gwangyang Lake Centum’ is located in Madong area, Gwangyang-si, Jeollanam-do. It consists of 9 buildings from 3 basement floors to a maximum of 29 floors above ground, with a total of 925 households ranging from 84 to 159㎡ in exclusive area. Among them, 717 households (713 households of 84㎡ exclusive area, 4 penthouses of 134~159㎡ exclusive area) will be offered first.

‘The Sharp Gwangyang Lake Centum’ will start special supply on January 29, 2024, followed by first-priority subscription on the 30th and second-priority subscription on the 31st via the Korea Real Estate Board’s Subscription Home website. Winners will be announced on February 6, and official contracts will be conducted over three days from February 19 to 21.

Eligibility for first-priority subscription requires at least 6 months of subscription savings account membership and residence in Gwangyang-si (local), Jeollanam-do, or Gwangju Metropolitan City (others), and applicants must be at least 19 years old. Applications can be made regardless of home ownership, household head or member status, or re-subscription status. Since all units are medium to large-sized, except for 40% of the 84㎡ type, all other units will be supplied by lottery, and resale of the sale rights is allowed immediately after contract.

‘The Sharp Gwangyang Lake Centum’ is supplied at a reasonable price, gaining favorable responses from actual buyers. The 84㎡ exclusive area starts from the low 300 million KRW range, with ample room for price appreciation, and is considered a rare sale price.

Additionally, the down payment is lowered to 5%, and a fixed first installment of 5 million KRW is introduced to reduce the initial financial burden on buyers. A zero-interest benefit on the interim payment is also provided, where the developer covers all interest on loans amounting to 60% of the sale price.

‘The Sharp Gwangyang Lake Centum’ offers beautiful views of Gaya Mountain and is located in a prime residential area with a mountain-back, water-front setting enjoying Madong Ecological Park and Madong Reservoir. As it is supplied under the premium ‘The Sharp’ brand, residents can expect differentiated complex design, diverse community facilities (Club The Sharp), and smart home services (IQ Tech) that enhance residential convenience.