Hyundai Construction Supplies 'Hillstate Cheongnyangni Metroble' in Dongdaemun-gu, Seoul

Before Price Increase, Potential Buying Opportunity... Attention Focused on Complexes Currently for Sale

[Hyundai Construction 'Hillstate Cheongnyangni Metroble' Perspective View]

Factors driving the rise in sale prices, such as the sharp increase in material costs, are steadily increasing. Amid this, the government has moved up the announcement of the improved sale price ceiling system to this month. Additionally, a plan to actively reflect the rise in construction material costs in construction expenses will also be announced by the end of this month, leading to expectations of sale price increases starting in the second half of this year.

According to the industry, the Ministry of Land, Infrastructure and Transport plans to raise the delivery prices for government procurement projects and improve the system to ensure that increases in material costs are promptly reflected in construction expenses. This is due to concerns that conflicts between clients and contractors over whether to increase construction costs amid rising raw material prices could disrupt housing supply. However, if this happens, an increase in sale prices is inevitable.

In fact, Ssangyong C&E, ranked first in the cement industry, decided last month to raise the price of Type 1 cement by 15.2%, from 78,800 KRW per ton to 98,000 KRW. The ready-mixed concrete price in the metropolitan Gyeongin area was also agreed to increase by 13.1% to 80,300 KRW. The government plans to include these details in the sale price ceiling system improvement plan to be announced this month.

Under the sale price ceiling system, sale prices are determined by adding appropriate profits for construction companies to land and construction costs. Although introduced with the intention of supplying homes at affordable prices to actual users, there are voices that it has delayed urban renewal projects and worsened the supply shortage. Immediate abolition is difficult, but even minor adjustments can significantly impact sale price increases.

Given this situation, there are opinions that now, before the sale price increase, is the right time to purchase a home. In particular, complexes with prices already set and currently on sale are gaining popularity. It is analyzed that investors’ buying momentum will increase as price hikes matching future new sale prices are expected, allowing for capital gains.

Meanwhile, Hyundai Construction’s “Hillstate Cheongnyangni Metroble” is a complex supplied before the reform of the sale price ceiling system and is progressing smoothly with sales. Located in Cheongnyangni, Dongdaemun-gu, Seoul, this complex consists of two buildings ranging from six basement floors to 28 above-ground floors, offering a total of 384 residential units including public rental housing and neighborhood living facilities for sale.

Among the residential facilities, all 96 officetel units and all neighborhood living facility units found owners within three days of contract. Recently, contracts for urban-style residential housing have also been progressing smoothly. Urban-style residential housing is gaining attention as an investment option as plans to exclude it from the housing count are underway. Exclusion from the housing count reduces tax burdens for multi-homeowners, increasing its value as a rental product.

Moreover, “Hillstate Cheongnyangni Metroble” is located in the heart of Seoul and is evaluated to have high future value due to major large-scale development benefits secured. It is within walking distance of Yongdu Station on Line 2, Jegidong Station on Line 1, Cheongnyangni Station on Line 1, Bundang Line, Gyeongui-Jungang Line, Gyeongchun Line, and KTX, with large-scale transportation projects actively underway.

Additionally, GTX-B and GTX-C lines are planned to be built at Cheongnyangni Station, greatly improving accessibility to the south side of the Han River in the future. The Myeonmok Line and Gangbuk Transversal Line are also under development, and once all planned lines open, the area around the complex will become a large-scale transportation hub densely connected to Seoul and the metropolitan area.

At Jegidong Station, the Dongbuk Line, included in the 2nd Seoul Urban Railway Network Construction Plan, is also planned and construction is progressing rapidly. The Dongbuk Line Jegidong Station will be directly connected to an underground platform right in front of the complex, offering excellent convenience. The Dongbuk Line connects Sanggye Station, Jegidong Station, and Wangsimni Station, with an expected opening in 2024.

Redevelopment projects are also active, further improving residential conditions. Including this complex in Yongdu 1 District 3 Zone, redevelopment projects such as the Cheongnyangni Redevelopment Promotion District are being carried out comprehensively in the area. The Cheongnyangni Redevelopment Promotion District is a large-scale redevelopment project covering about 110,000 pyeong. It is expected to transform Cheongnyangni into a new town in Gangbuk densely packed with new buildings. Nearby, a high-rise residential-commercial complex has been completed, and as the complex’s move-in time approaches, the residential environment is expected to change dramatically.

Meanwhile, “Hillstate Cheongnyangni Metroble” is currently operating a model house.

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