Banpozai, Banpo-dong, Seocho-gu, Seoul, the most expensive in the country, with an officially announced land price of 24.5 million won per ㎡.
Next year, the sale price of reconstruction apartments in Gangnam, Seoul will increase by 130 million won on the basis of 84 square meters for exclusive use, which is the size of national housing from this year. This is because the publicly announced land price for standard land, which is the base price for calculating the land ownership tax, will increase significantly next year.
[안장원의 부동산노트]
Due to the increase in the publicly announced land price for standard land apartments
The upper limit pre-sale price seems to rise a lot
Even if the price goes up, compared to the market price,’Lotto’
Reconstruction complexes post-sale scale
As the publicly announced land price for the next year’s standard land, which has been read from the 24th, surged by more than 10%, the building owners are depressed by the surge in taxes, but the reconstruction, on the contrary, benefits from better business. Reconstruction member ownership tax calculated at the published price of a house is independent of the published land price.
15% increase in publicly announced apartments in Gangnam Standard
As a result of the survey of the publicly announced land price for the next year’s standard apartment, the Banpozai site in Banpo-dong, Seocho-gu, Seoul, was found to be 24.5 million won per ㎡, the most expensive. This is a 15% increase from 21.3 million won this year. Daechi-dong Centerville in Daechi-dong, Gangnam-gu, rose 15% to 241.1 million won. Jamsil L’s, Jamsil-dong, Songpa-gu, will also increase 14% from 15.30 million won this year to 17.5 million won next year. Mapo, Yongsan, and Seongdong-gu have risen around 10%.
The average increase rate of publicly announced apartments in 18 districts in Seoul and 3 cities in Gyeonggi-do (Gwacheon, Gwangmyeong, and Hanam), which is an upper limit for the sale price of private residential land, was calculated at 11%.
Due to the increase in publicly announced land prices, the upper limit pre-sale price is expected to increase by 4 million won per 3.3㎡. This is the price estimated by the method of calculating the pre-sale price of private housing land caps, such as reconstruction and redevelopment, which began in earnest since the end of July.
Source: Ministry of Land
The sale price for which the ceiling system is applied is calculated as the sum of the land price and construction cost. The land price is determined based on the publicly announced land price of the standard land, and the construction cost is determined within the range of basic construction costs announced by the government every six months.
We simulated the sale price that will vary. The appraisal amount is a market price applying the realization rate (67.8% of residential land) to the publicly announced land price, and the construction cost is estimated at 10 million won per 3.3㎡. The construction cost of the ceiling system for private housing that has passed the pre-sale price evaluation this year is 8 to 11 million won per 3.3 square meters.
Gangnam pre-sale price is higher than HUG regulated price
As a result of the simulation, the pre-sale price applying the upper limit system is expected to rise by 8% in Gangnam. The pre-sale price based on the publicly announced land price of Banpozai and Daechi-dongbu Centerville will increase by 8% from 46 million won per 3.3 square meter this year to 49 million to 50 million won this year. The pre-sale price by housing type will increase by KRW 59m2 for exclusive use and KRW 130million for exclusive use of 84㎡.
The increase in the upper limit pre-sale price introduced by the government to further press the pre-sale price is greater than the existing HUG management price. Sales prices in Seoul, subject to HUG regulation, have risen by an average of 2.1% over the past year.
Wol-Moo Lee, CEO of Mid-Me Networks, said, “HUG limits the price within the range of the pre-sale price, so the pre-sale price moves in place, but the upper limit pre-sale price is linked to the rise of land prices and construction costs.”
In some regions, such as Gangnam, the capped pre-sale price is expected to be higher than the HUG regulated price. The highest pre-sale price of HUG per 3.3㎡ in Gangnam, where the ceiling price can be over 50 million won per 3.3㎡, is 48.92 million Won in Seocho-gu. It is the same since October 2018, two years ago. Gangnam-gu is 47.5 million won since April last year.
However, the upper limit pre-sale price in most regions is less than the HUG price, and compared to the market price, it is a’lotto’ which is as much as 50% cheaper. When calculating the maximum sale price based on the publicly announced land price of the standard land, 12 of the 18 districts in the upper limit of Seoul are lower than the average sale price in Seoul (27.2 million won per 3.3㎡) in the past year, excluding six such as Gangnam.
The market price of Banpozai and Daechi-dongbu Centerville, which is about 50 million won per 3.3 m², is about 65 million to 70 million won per 3.3 m². The market price of Jamsil-Els is 63 million won per 3.3㎡ and the upper limit pre-sale price is 38 million won. Seongsu-dong 1-ga, Seongdong-gu, Seongsu-dong 1-ga, with a market price of close to 70 million won per 3.3㎡, based on the publicly announced land price of Seoul Forest Tree, the maximum price is about 31 million won.
The market price of Gwacheon Weaverfield in Byeolyang-dong, Gwacheon-si, Gyeonggi-do, moving in January next year, is 50 million won per 3.3㎡, and the surrounding brokerages see it. The pre-sale price estimated at the officially announced land price for this apartment is 21 million won per 3.3㎡.
Kim Jeong-ah, executive director of domestic and foreign residents, predicted, “Because the appraisal amount may be higher or lower than the standard land market price depending on the location, etc., the actual sale price of individual upper limit complexes is different from that of the standard land complex, but it will still be much cheaper compared to the market price of new apartments in the area.”
If the notice runs, post-sale is advantageous
The reconstruction project in Gangnam, which has been caught up in a series of regulations, can be expected to benefit from a surge in publicly announced land prices. This is because the cost burden decreases when the sale price increases. If the pre-sale price increases by about 4 million won per 3.3㎡, the general pre-sale income increases by about 90 billion won in Banpo 3 district, Banpo-dong, Seocho-gu, which is subject to the upper limit, reducing the project cost burden per member by 60 million won.
The industry expects the increase in post-sales that can receive higher pre-sale prices due to the increase in publicly announced land prices for reconstruction complexes. In fact, Banpo District 3 is planning to sell it after construction.
J&K Urban Maintenance CEO Paik Jun said, “If you do post-sale, you have to put in the construction cost first, which increases the project cost, so you have to weigh the profit or loss of the post-sale.”
Reporter Ahn Jang-won [email protected]