The five largest metropolitan cities and Sejong City rose by 26% in one year, and the metropolitan area by 18%.
As construction costs are expected to continue to rise, sales prices remain on the rise.
The sale price of private apartments across the country has soared by about 5% in just one month, and the perception that “now is the cheapest time” is growing stronger among prospective buyers.
According to HUG (Housing and Urban Guarantee Corporation) on the 25th, the average price of private apartments sold nationwide in March was 18.58 million won per 3.3㎡, up 4.96% from February. This is a 17.2% increase compared to the same month last year.
Public sale apartments are also unable to avoid rising sales prices. According to the Ministry of Land, Infrastructure and Transport, the total project cost of public pre-sale apartments in Gyeyang District, Incheon, which is the first complex in the 3rd new city in the metropolitan area to receive pre-subscriptions, has increased by about 30% in just over two years, raising concerns about an increase in pre-sale prices.
The main reason for the surge in sales prices is the increase in construction costs. Even considering that the number of new sales last month (4,737 households) decreased by 75% from the previous month due to the revision of the subscription system, the increase in construction costs is unusual. The increase in the construction cost index has slowed from 14% at the end of 2021 to 2.5% in January, but the prevailing assessment in the industry is that the upward trend will continue. As the sale price trend increases and the probability of winning increases due to the revision of the subscription system, the competition rate for subscriptions for new apartments is increasing even in local areas.
‘Daegu Beomeo I-Park’, which received subscriptions from HDC Hyundai Development Company this month, recorded a competition rate of 16 to 1 for first place. This is the double-digit competition rate in Daegu for the first time in two years. ‘Asan Tangjeong Samsung Tra Palace’, which received subscriptions from Samsung C&T in the same month, recorded a first-place competition rate of 407 to 1.
Consumers are also paying attention to the new complex, which is expected to be sold this month. In Nam-gu, Ulsan, Lotte Engineering & Construction and SK Eco Plant are selling ‘LALS’, a large complex with 2,033 households. It is evaluated that it has abundant school districts and living infrastructure, and is also adjacent to Ulsan Grand Park. This is the first large complex in Nam-gu, Ulsan in 12 years, and it is also rare.
A real estate industry official said, “As sales prices continue to rise, the success or failure of sales is being determined by location. From the perspective of end-users purchasing their own homes, it is worth carefully examining the revised subscription system and giving it a try.”
Reporter Yoo Oh-sang [email protected]
