Ministry of Land, Infrastructure and Transport: "Housing Construction Costs Under Price Ceiling System Up 3.1%"

Apartment complex in Gayang-dong. Photo by Jo Yongjun jun21@

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The Ministry of Land, Infrastructure and Transport announced on the 29th that the standard construction cost applied to housing under the Sale Price Ceiling System (hereinafter referred to as the 'Sale Price Ceiling') will be regularly notified on March 1st.

In this notification, due to the increase in material costs such as ready-mixed concrete and labor costs, the standard construction cost (for buildings 16 to 25 floors or less, with a net floor area of 60 to 85㎡ on above-ground floors) will rise by 3.1%, from the previously announced 1,976,000 KRW per square meter to 2,038,000 KRW per square meter. This reflects changes in material prices including a 7.2% increase in ready-mixed concrete, 17.7% increase in window glass, and 1.3% increase in reinforced plywood flooring, as well as changes in labor unit costs including a 3.05% increase for general workers, 5.61% for special workers, and 4.14% for concrete workers.

The standard construction cost is one of the components that make up the sale price ceiling for Sale Price Ceiling housing and is regularly notified every six months. Sale Price Ceiling housing refers to housing constructed and supplied on all public land and in private land areas where the Sale Price Ceiling is applied.

The revised notification will apply to complexes that apply for resident recruitment approval on or after March 1st. A Ministry of Land official stated, "The actual sale price should be determined at a reasonable level within the sale price ceiling range, including the standard construction cost, considering the possibility of sale and surrounding market prices."

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