Hanyang Proposes "Gwangju Jungang Park District 1, Pre-sale Price 19.9 Million Won"

Mid-sized construction company Hanyang proposed a pre-sale price of 19.9 million KRW per 3.3㎡ for the Gwangju Jungang Park District 1 private park special project.

Hanyang held a press conference on the 4th at Gwangju City Council titled "Hanyang's Sale Price Proposal as the Lead Developer for Social Agreement on Gwangju Central Park District 1." From the left, Seongbin Park, Executive Director of Hanyang, and Jaekyun Lee, Senior Managing Director of Hanyang Legal Team. Photo by Hanyang

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On the 4th, Hanyang held a press conference at the Gwangju City Council to propose the pre-sale price for the conversion of the Jungang Park District 1 private park special project, stating, "The recent feasibility review of the pre-sale price for the conversion of Jungang Park District 1 by the Chonnam National University Industry-Academic Cooperation Foundation is a 'deceptive administration' by Gwangju City to guarantee profits for a specific business operator."

Recently, the Industry-Academic Cooperation Foundation set the sale price at 24.25 million KRW per 3.3㎡ for supplying 2,772 households through this project. Hanyang estimated that a significant amount was inflated in the overall project costs, including land costs, construction costs, financial costs, sales expenses, and management fees. Hanyang reanalyzed the Foundation’s review plan and claimed that the apartments could be sold at 19.9 million KRW per 3.3㎡ by reducing the total project cost by 463.3 billion KRW. The reductions include ▲ normalization of excessively estimated amounts (land cost 8.2 billion KRW, construction cost 180.2 billion KRW), ▲ improvement of sales feasibility (financial cost 15.4 billion KRW, sales and management expenses 170.5 billion KRW), and ▲ reduction of developer profit (project implementation profit 66.3 billion KRW).

Hanyang stated, "By cutting 463.3 billion KRW from the excessively accounted total project cost, we will supply apartments at 19.9 million KRW per 3.3㎡, which is 4.35 million KRW lower than the Industry-Academic Cooperation Foundation’s proposal."

During the process of converting the sale method of the Jungang Park District 1 private park special project from post-sale to pre-sale, Hanyang has insisted on the principle that the project plan should be re-examined from scratch without any changes. On the other hand, Gwangju Metropolitan City maintains its position to derive a social consensus plan based on the feasibility review of the pre-sale price conversion conducted by the Chonnam National University Industry-Academic Cooperation Foundation, without forming any additional agreement bodies.

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