The 84㎡ public pre-sale price for Wirye New Town has risen to the limit of KRW 900 million for mid-term loans.
The ceiling on the sale price of private residential land (city center) reintroduced in 4 and a half years by then Minister of Land, Infrastructure and Transport in November 2019, saying it was the last puzzle to stabilize the housing market. It broke 50 million won’ceiling’ per 3.3㎡ in Gangnam, Seoul. The green belt (development restricted area) was released, and the public pre-sale price for the homeless common people in public housing, which had applied the upper limit system, exceeded the limit of 900 million won for mid-payment loans. The ceiling system is a pre-sale price regulation that limits pre-sale prices based on land prices and construction costs, regardless of the market price.
[안장원의 부동산노트]
① Upper limit high sales price emergency
Gangnam reconstruction exceeded 50 million won per 3.3㎡
Public pre-sale rises to the limit of intermediary loans
Realization of published price drives pre-sale price
The government’s expanded ceiling system, saying it will set a house price, is fueling the high-rise march of pre-sale prices. The polarization between homeless end users who do not have extra funds and’cash rich’ is expected to intensify.
Re-introduction of the cap system Sales price increased by 80% in 6 years
On the 8th, the average pre-sale price of the 3rd Sinbanpo and Gyeongnam reconstructed apartments in Banpo-dong, which was confirmed by the Pre-sale Price Review Committee, was 56.69 million won per 3.3㎡. The national housing scale of 84㎡ (hereinafter, exclusive area, 34 pyeong) is expected to exceed 2 billion won in a good floor and village.
A bird’s-eye view of the 3rd Sinbanpo·Gyeongnam reconstruction apartment.
This complex is actually the first large-scale reconstruction complex in Gangnam. Unlike the pre-sale price cuts promised by the government, it increased by 8 million won per 3.3 ㎡ compared to the previous pre-sale price of HUG (48.92 million won per 3.3 ㎡).
Compared to the Gangnam high-end pre-sale price six years ago, it surged by 80%. The last reconstruction apartment in Gangnam sold in 2015 was Wooseong 3rd in Seocho-dong, Seocho-gu. The pre-sale price was 31.1 million won per 3.3㎡ in October 2014. The sales price of 83㎡ for exclusive use was 1 billion won.
Since October 2014, apartment prices in Seocho-gu have risen by 30%.
Source: Industry Synthesis
The pre-sale price of public housing is also on the rise. The pre-sale price in the high school district of Seongnam-si, Gyeonggi-do, sold in early this month was 24 million won per 3.3㎡. 84㎡ 5 floors and above households cost 850 million won.
The sale price of apartments in the same high district in July 2017, three years ago, was 18 million won per 3.3 square meters. Over 5 floors of 84㎡ cost 610 million won. It has risen by 40% over three years.
The pre-sale price of some top floors of 84㎡ of public pre-sale in Wirye New Town, Seongnam-si, Gyeonggi-do sold this month is around 970 million won. If the pre-sale price exceeds 900 million won, you cannot receive an intermediate payment loan. This is the first time in history that the public pre-sale price has exceeded 900 million won.
Source: Industry Synthesis
Seoul official land price has risen by 60% since 2015
The high-limit pre-sale price soared is due to the soaring price of publicly known land. In the upper limit system, the land price among the pre-sale prices is calculated as an appraised amount based on the publicly announced land price of standard land. From 2015 to last year, the published land price of the Seoul Standard Paper has increased by 60.6%.
The price of housing land in the higher district, which is the appraisal amount, also increased by 34% over three years. In the Wirye New Town of Hanam City, the appraisal amount of apartment land, which was 6 million won per square meter in December 2018, was 7.6 million won in October last year, up by 30%.
Kim Deok-rye, head of the Housing Industry Research Institute’s Housing Policy Research Department, said, “In popular areas, land prices account for most of the pre-sale prices,” he said.
Source: Ministry of Land
Homeless end-users who do not have enough funds have an emergency in preparing the sale price. The down payment is 20% of the pre-sale price, and the winners of 84㎡ of public residential land must obtain about 150 million won immediately after winning. The limit on intermediate payment loans is 40% of the sale price. If the pre-sale price exceeds 900 million won, even this must be prepared on its own. If the pre-sale price exceeds 26 million won per 3.3 m2, the pre-sale price of 84 m2 will exceed 900 million won.
Mr. Kim, 46, who is preparing to subscribe for public housing, said, “I am thinking of 84 square meters, but the pre-sale price is burdensome, so I think I need to reduce the size of the house.”
Public sales of Newlywed Hope Town for newlyweds are also overwhelming for newlyweds. Wirye and Gwacheon, which came out earlier this month, and 55m2 of Suseo Station in Seoul in December 2019, are worth 500 million won. It is 9 times the average annual income of newlyweds (57 million won) as of 2019.
Although the sale price rises, property rights regulations such as restrictions on resale of upper-limit apartments are becoming more severe.
Sales price goes up, but resale limited 3 years → 10 years
The 3rd Shinbanpo·Gyeongnam monopoly is limited for 10 years. This is because the pre-sale price was evaluated at less than 80% of the surrounding market price. The market price of new apartments such as nearby Acro River Park is 80 million to 90 million won per 3.3 square meter. The highest actual transaction price of 84㎡ of Acro River Park (3.72 billion won) exceeded 100 million won per 3.3㎡.
For private housing complexes sold after the 19th of the following month, if the resale period is 10 years, a 3-year residence requirement is also attached.
If the upper limit is not applied, the resale limit is until occupancy (maximum 3 years).
“The government’s regulation on pre-sale prices has resulted in fueling the price,” said Ham Young-jin, head of Jikbang’s Big Data Lab.
If the number of consumers who can cross the high pre-sale price decreases, the upper limit apartment is expected to become a lotto occupied by the’cash rich’ who does not worry about funds. Even if the sale price goes up, it is still much cheaper than the surrounding price. Shinbanpo 3rd·Gyeongnam 84㎡ is expected to have a market margin of 1.5 billion won.
The reconstruction associations are displeased with the sale price of Sinbanpo 3rd and Gyeongnam, which is much higher than the HUG regulated price. This is because the upper-limit pre-sale price is higher than expected, so you can relieve the worry about the upper-limit system. As the pre-sale price increases, the burden of project costs decreases. Dunchon Jugong, Gangdong-gu, who has delayed sales by weighing HUG prices and capped sales prices for a year after construction commences, is expected to accelerate sales.
Reporter Ahn Jang-won [email protected]