Reasons Small Homes Attract Attention... 'Singil AK Prugio' Now Available for First-Come, First-Served Sale

- Monthly Rent Share in Lease Transactions Increasing Annually... Housing Demand Concentrates on New Sale Market
- Seoul Sales Hit Record Low... Small Housing 'Singil AK Prugio'

As the era of Jeonse (long-term lease) comes to an end, the housing situation for ordinary people has reached a crossroads between monthly rent and newly launched apartment complexes. Housing demanders who cannot keep up with soaring Jeonse prices are involuntarily switching to monthly rent or turning their attention to newly launched complexes that are cheaper than existing homes.

According to the Seoul Real Estate Information Plaza, last year, the number of monthly rent apartment transactions in Seoul reached 71,269, the highest figure since related statistics began to be compiled. Additionally, the proportion of monthly rent contracts in Seoul apartment lease contracts has been increasing. In 2019, monthly rent accounted for only 28.1% of all lease contracts in Seoul, but in 2020 and 2021, it rose to 31.1% and 37.4%, respectively.

As monthly rent transactions increase, prices are also rising. According to real estate statistics from the Korea Real Estate Board, as of December last year, the average monthly rent for apartments in Seoul was 1,245,000 KRW, a 10.5% increase compared to the same month in 2020.

Real estate experts predict that from August, marking two years since the implementation of the Lease Protection Act, the transition to new contracts after the expiration of the right to request contract renewal will accelerate the conversion of Jeonse to monthly rent, and both Jeonse and monthly rent prices will rise. This is because the burden of comprehensive real estate tax on landlords will be passed on in new contracts, causing Jeonse prices to increase, and demanders who cannot meet Jeonse prices are expected to flow into the monthly rent market.

There are also opinions that demand will shift to newly launched apartment complexes. These complexes are cheaper than existing homes and are located in areas with good transportation and location, leading to expectations that demand will remain strong and prices will not fall. However, new apartment launches in Seoul are extremely insufficient. In fact, last year, the supply of new apartment units in Seoul recorded the lowest level since 2010.

Accordingly, in Seoul, demanders are turning their attention to small-sized housing as an alternative to apartments. In particular, small-sized housing is free from restrictions such as re-winning limitations and does not require subscription savings accounts.

[‘Singil AK Prugio’ Perspective View]

Prime Location in Singil New Town... ‘Singil AK Prugio’ Small-Sized Housing Available on a First-Come, First-Served Basis

Meanwhile, small-sized housing units of ‘Singil AK Prugio’ are being offered on a first-come, first-served basis in the Singil-dong area of Yeongdeungpo-gu, Seoul.

The complex is a mixed-use residential building consisting of five buildings from basement level 5 to ground level 24, with a total of 392 units including small-sized housing and officetels, as well as neighborhood living facilities. The currently supplied small-sized housing units include ▲49㎡A 80 units ▲49㎡B1 148 units ▲49㎡B2 19 units ▲49㎡C 39 units, totaling 286 units.

Especially, ‘Singil AK Prugio’ is located at the very center of Singil New Town, allowing easy access to various infrastructures. The complex plans to include commercial facilities covering 10,000㎡ and public offices covering 4,000㎡. It is also close to Yeongdeungpo Times Square, Shinsegae Department Store, E-Mart, and Lotte Department Store.

The Sinansan Line double-track railway is scheduled to open near the complex in 2024. Additionally, the Seoul Metropolitan Subway Lines 7 and 1 are conveniently accessible.

The complex design also stands out for residents. The floor plan features a two-room type (accounting for 72% of total units) with a living room, kitchen, bathroom, and two bedrooms, and all units will have balcony extensions constructed free of charge. Furthermore, one spacious parking space per unit will be provided.

The contract terms are 10% down payment, 50% interim payment, and 40% balance payment. Interim payment loans are available up to 40% of the total sale price, with interest deferred payment benefits provided.

Meanwhile, ‘Singil AK Prugio’ operates a model house, and a virtual model house is also available on the official website. Move-in is scheduled for July 2024.

This content was produced with the assistance of AI translation services.