[Youth Daily]As a major issue in the construction and real estate industry last week, the government expanded the number of pre-orders in the private sector to 107,000 households, and confirmed and announced the number of pre-orders for the first private housing, centered around downtown Seoul, this month. The news came and drew attention.
The news that the average sale price of large apartments in Seoul rose by more than 1 billion won under the current government and the news that the rate of increase in apartment prices in Seoul has been slowing for a month has been drawing attention as the buying trend has contracted due to the government’s super-strong loan regulations and soaring interest rates.
The news that Doosan E&C will be acquired by The Zenith Holdings Co., Ltd., an investment purpose company in which Q Capital Partners, a domestic private equity fund (PEF) manager, etc., is the largest shareholder, drew the attention of the industry.
◆ Nam-ki Hong, “Private pre-order volume expanded from 101,000 to 107,000”
Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki said on the 17th, “Among the private sector pre-orders at the end of this month, we plan to confirm and announce the first 6,000 pre-orders for private housing, mainly in downtown areas near Seoul.”
Deputy Prime Minister Hong held a ministerial meeting related to the inspection of the real estate market at the government complex in Seoul on the same day and announced that “the amount of pre-orders in the private sector will be expanded from the original 101,000 units to 107,000 units.”
Accordingly, the total number of pre-orders including public housing increased from 163,000 units to 169,000 units.
Deputy Prime Minister Hong also announced, “From today, recruitment notices for the 3rd pre-order 4,000 houses, including Hanam Gyosan and Gwacheon Juam, will be released.”
He emphasized, “We will continue to provide end-users with the opportunity to purchase a home by conducting a total of three additional advance subscriptions at intervals of about a fortnight or so until the end of the year.”
First of all, on the 18th, pre-orders for 4,000 public housing units such as Hanam Gyosan and Gwacheon Juam will be held.
Thereafter, advance subscriptions were made for 6,000 units for private sale at the end of this month and 13,600 units for public sale in the middle of next month, including Incheon Gyeyang and Bucheon Daejang.
Deputy Prime Minister Hong said, “Hanam Gyosan and Gwacheonjuam, where pre-orders are taking place this time, are among the areas with the highest preference for those waiting for subscriptions. I look forward to it,” he said.
◆ Advance subscription for public housing land for private sale… Private sale special offer 30% lottery system
In public housing sites, pre-subscription is implemented not only for housing supplied by the public such as Korea Land and Housing Corporation (LH), but also for private housing supplied by private construction companies.
In addition, young people who are in the blind spot of subscription, such as high-income dual-income couples, single-person households, and newlyweds without children, will be able to receive special apartment supplies through lottery.
The Ministry of Land, Infrastructure and Transport announced on the 15th that the rules on the supply of new housing, based on this content, will come into effect from the 16th.
This is a follow-up measure to the ‘Plan to expand the pre-order for private housing’ and ‘Special measures for youth’ announced by the government in August.
According to the new rule, the advance subscription that currently applies only to public sale in public housing sites is expanded to private sale.
Advance subscription is a system in which housing is supplied two to three years before the main subscription. Earlier, the government decided to supply 62,000 public housing units on public housing sites in the metropolitan area, including the 3rd new city, through a pre-order method, but it was expanded to other types of housing such as private housing.
In the pre-subscription stage, applicants decide whether to subscribe based on information such as the number of households, types by size, and estimated sale price.
Advance subscription is possible when the Housing and Urban Guarantee Corporation (HUG) verifies the construction company’s estimated sale price and the local government approves the recruitment of preliminary occupants.
The winner signs a pre-supply contract with the implementer, but does not have to pay the pre-sale price separately during the contract signing stage. You can make a final decision on your intention to participate in the subscription after confirming the sale price calculated through the sale price review committee.
However, the qualifications such as non-homeownership and residence period must be maintained until the announcement date of the recruitment of occupants.
◆ In the high price of a house in Seoul”…the procession of 3.41 million people fleeing Seoul over the past 6 years
As house prices and jeonse prices in Seoul skyrocketed and even the shortage of properties accelerated, an analysis showed that the ‘de-Seoul procession’ has continued for several years.
According to the results of analysis of domestic demographics on the national statistics portal (KOSIS) by Real Today, a real estate research firm, on the 16th, 3,414,397 Seoul citizens migrated to other areas over the six years from 2015 to last year.
An average of 569,66 people left Seoul every year, and 434,209 people participated in the escape procession until September this year.
In particular, the procession of escape from Seoul in their 20s and 30s stood out.
Between 2015 and last year, the proportion of 20 and 30 generations who left Seoul accounted for 46.0% of the total. Specifically, those in their 30s (24.1%) had the highest proportion, followed by those in their 20s (22.0%), 40s (14.1%), and 50s (11.8%).
A Real Today official said, “As apartment sales and jeonse prices have risen sharply over the years, it has become difficult to find a place to live in Seoul with only the salaries of office workers. It will get worse.”
◆ Controversy over ‘high sale price’ in the 3rd advance subscription
Although the government is supplying pre-orders one after another to silence the demand for housing purchases in the metropolitan area, controversy over high sale prices continues in some areas adjacent to Seoul.
It is said that the estimated sale price of close to 700 million won came out in the Bokjeong and Sinchon districts of Seongnam previously announced by the government, followed by an estimated sale price of close to 900 million won in the Juam district in Gwacheon.
According to the Ministry of Land, Infrastructure and Transport on the 17th, the estimated sale price of 84㎡ for public sale in the C-1 block of Juam District, Gwacheon, Gyeonggi-do, which is one of the 3rd pre-orders starting from the 1st of next month, was set at 884.6 million won. It hit the chin of 900 million won, which is the ban on mid-payment loans.
Previously, in the 1st and 2nd advance subscriptions, the high sale price was controversial, with estimated pre-sale prices of 676 million won and 682.8 million won, respectively, in Seongnam Bokjeong 1 district (59 m² for exclusive use) and Sinchon district (for exclusive use of 83 m²).
All of these areas are very close to Seoul, less than 3km away in a straight line.
The Ministry of Land, Infrastructure and Transport refuted the controversy over the high sale price, saying, “The price ceiling system has been applied, and the price is 60-80% or less compared to the surrounding market price.”
Even in the industry, “the sale price is high, but considering that the market price is in the mid 1 billion won range, the moment you win, it becomes a ‘lottery’ worth hundreds of millions of won.” However, it is pointed out that the rise in the sale price even in public housing supplied by the public will inevitably be a huge burden on end-users without a home.
◆ Songpa Rose, Daechi Mido, etc. Reconstruction ‘Speed’… Application of rapid integrated planning
In major reconstruction complexes in Seoul, such as Yeouido pilot apartment, Daechi Mido apartment, Songpa Rose 1, 2, and 3, and Guro Wooshin Villa, Mayor Oh Se-hoon’s ‘quick housing supply’ plan, the rapid integrated planning method, was promoted.
The Seoul Metropolitan Government additionally applied rapid integrated planning to nine redevelopment and reconstruction areas requested by residents.
Reconstruction areas include Yeouido Demonstration, Daechi Mido, and Songpa Rose 1, 2, and 3. Songpa Hanyang 2nd Cha, Guro Wooshin Villa, Godeok Hyundai, Mia 4-1, etc. 7 sites, and 2 redevelopment areas including Sindang-dong 236-100 and Sinjeong-dong 1152.
With this, the number of areas to which the rapid integrated planning is applied will increase to 20 in total, in addition to the 11 existing areas such as Sillim District 1.
Rapid integrated planning is a method by which the Seoul Metropolitan Government supports private-led development, such as simplifying complex maintenance project procedures and shortening the deliberation period through integrated deliberation on architecture, transportation, and environment. Designed to speed up housing supply after Mayor Oh took office.
The nine sites added this time are places where projects have been stagnant for a long time due to rigid urban planning regulations, problems with consistency with district unit plans, and conflicts with residents, the city said.
The city plans to apply customized urban planning standards according to the characteristics of each region and significantly shorten the project period.
◆ Doosan E&C sold to The Zenith Holdings… “Expecting financial structure improvement”
Doosan E&C acquired The Zenith Holdings Co., Ltd., an investment-purpose company in which Q Capital Partners, a domestic private equity fund (PEF) manager, is the largest shareholder.
Doosan Heavy Industries & Construction held a board meeting on the 19th and announced that it had decided to transfer the management rights of Doosan E&C to The Zenith Holdings through the sale of its shares.
The Zenith Holdings will participate in the capital increase of about 250 billion won through a third-party allocation method conducted by Doosan E&C and acquire management rights by securing 54% of the total number of outstanding shares of Doosan E&C.
Doosan E&C is expected to significantly improve its financial structure through this, and Doosan Heavy Industries & Construction expects to increase its stake in Doosan Heavy Industries & Construction when The Zenith Holdings realizes profits by raising the value of Doosan E&C based on the improved financial structure.
◆ 2nd tallest building in the world… Samsung to complete Malay Tower next year
The world’s second-largest skyscraper, ‘KL118’ in Malaysia, built by Samsung C&T, is expected to be completed in the third quarter of next year.
According to the News Times, a local media in Malaysia on the 15th, the 118-story KL118 to be built by Samsung C&T in Kuala Lumpur, Malaysia is expected to be completed in the third quarter of next year. Initially, the height of the building was 644 meters, but when the spire is completed, it will reach 700 meters. This medium is a battleship.
The final height will be revealed next year. At the start of the construction, it was scheduled to be completed in December 2019, but the completion time was delayed by about three years due to the aftermath of the spread of Corona 19.
The KL118 construction project, which started in 2014, is being built by Samsung C&T in a consortium with UEM, a local construction company. It is a complex development facility with a total floor area of 67,3862㎡ and consists of offices and hotels.
The highest observation deck in Southeast Asia will be installed on the upper part of the building, and it is expected that you will be able to enjoy the skyline of Kuala Lumpur through ‘Sky Lobby, Sky Restaurant’.
Elevators designed to provide panoramic views through glass will also be a special experience, the media said. The entire development project is expected to be completed in 2025-2026.
◆ 90% of adults “Construction company/brand value affects apartment price”
It was found that 9 out of 10 adult males and females nationwide believe that construction companies and brand values affect apartment prices.
According to the results of a survey conducted by Real Estate R114 on the 15th with Korea Research on 4,156 consumers from the 1st to the 14th of last month, 3,842 people (92.4%) said that the value of the construction company and the brand affects the increase in apartment prices. .
The influence of construction companies and brand prices has been over 90% since 2016, suggesting that it has a steady impact on apartment prices.
In this year’s ‘Best Apartment Brand’ survey conducted by Real Estate R114, GS E&C’s ‘Zai’ ranked first in the overall ranking, while Samsung C&T’s ‘Raemian’, Hyundai E&C’s ‘Hillstate’, Daewoo E&C ‘Prugio’, and Lotte E&C’s ‘Lotte Castle’ ‘This followed.
Woomi Construction’s ‘Lin’ was the only mid-sized construction company to be in the top 10 for 4 years, and Hanwha Construction’s ‘Forena’, a brand newly launched in 2019, entered the top 10 for the first time.
In addition, in a brand power survey of 2,391 members aged 20 and over by Dr. Apartment, a real estate research company, on the 1st to 7th of the top 50 companies in the domestic construction capability evaluation, Hyundai E&C Hillstate took the first place.
It was followed by GS E&C Xi, Lotte E&C Lotte Castle, Daewoo E&C Prugio, and HDC Hyundai Industrial Development I-Park.
◆ 3 out of 10 prospective tenants “cannot get the remaining loan” movement
As a result of a survey conducted by the Housing Industry Research Institute on housing construction companies that are members of the Korea Housing Association and the Korea Housing Construction Association on the 19th, 34.1% of the respondents said ‘not securing a balance loan’ among the reasons for not moving into an apartment last month. Compared to the previous month (26.7%), it rose by 7.4 percentage points.
This is the highest monthly figure since the Housing Industry Research Institute started a related survey in June 2017.
Previously, this ratio exceeded 30% only twice in July last year (33.3%) and in February (32.1%).
This is interpreted as a result of the financial authorities’ recent policy to strengthen household debt management, making it difficult to obtain loans from the financial sector.
In fact, in some apartments that have recently started moving in, there are cases in which the remaining loans are blocked due to the management of the total loan amount of the bank.
◆ A large apartment in Seoul… After the Wen government, it surged by more than 1 billion won.
According to the result of analysis of KB Kookmin Bank’s housing price trend statistics by Real Estate Information Provider Economic Manlab on the 18th, sales of large apartments in Seoul (exceeding 135 m² in exclusive area) that cost 1.471.5 billion won at the time of the inauguration of the Moon Jae-in government in May 2017 The average price was 2.473.01 million won last month, an increase of 1,01.48 million won in 4 years and 5 months.
In December 2019, the government banned the withholding of mortgages for houses worth more than 1.5 billion won in order to capture the price of ultra-high-end homes.
Nevertheless, it is interpreted that the average sale price continues to rise as the demand and scarcity of large-sized apartments in Seoul increase due to the increase in the tax burden of multi-homeowners and the shortage of supply.
Hansol Hwang, a research researcher at Economic Manlab, said, “The preference for so-called ‘smart houses’ with large housing areas in the core location of Seoul is intensifying, centering on multi-family dwellings.” , a situation in which large apartment prices are skyrocketing due to the preference for a smart house.”
Daechi I-Park, Daechi-dong, Gangnam-gu, Seoul The exclusive area of 149.78㎡ was sold for 1.89 billion won (14th floor) on May 12, 2017.
Also, the 157.07 m² dedicated to Woosung 1st car in Sindaebang-dong, Dongjak-gu increased from 775 million won (15th floor) on May 20, 2017 to 1.82 billion won (7th floor) on the 11th of last month, also more than doubled.
[Youth Daily = Reporter Kim Doo-hwan]
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