'Interest-Free Intermediate Payment Benefit' Promoted by 'Acleur Gwangjin' Successfully Sold Out

- Base interest rate raised for two consecutive months after 14 years and 9 months, with mortgage loan rates possibly rising above 7%
- ‘Acleur Gwangjin’ attracts attention with interest-free interim payments and essential home appliances provided, reducing burden to ZERO

There is a seismic shift occurring in the real estate market. Following the government's signal of 'panic buying' by easing regulations on multi-homeowners, the Bank of Korea has also raised the base interest rate.

On May 25, the Bank of Korea raised the base interest rate by 0.25 percentage points (p) from 1.50% to 1.75% per annum. This followed an increase from 1.25% to 1.5% in April, marking two consecutive months of rate hikes for the first time in 14 years and 9 months since July and August 2007. This base rate hike has effectively narrowed the standing of not only buyers but also investors in the real estate market. The atmosphere suggests that the more potential buyers weigh their options, the more burdened they become by higher prices, leading them to purchase real estate under pressure.

Some predict that the Bank of Korea will continue to raise the base interest rate by 0.5 percentage points in the future. Considering market expectations that the Bank of Korea will raise the base rate three to four more times this year, there are voices suggesting that the highest base interest rate could reach the 8% range.

This is because the Bank of Korea's need to curb inflation has increased due to the unprecedented surge in money supply caused by COVID-19. In fact, following the global rise in raw material and food prices due to the Russia-Ukraine conflict, and the U.S. Federal Reserve's (Fed) aggressive monetary tightening policy with two consecutive 'big steps' (raising interest rates by 0.5%) in June and July, it is possible that base interest rate hikes will continue.

A real estate expert said, "Reflecting this base rate hike, the annual interest burden per person is estimated to increase by about 160,000 KRW," adding, "Especially as the base rate continues to rise, mortgage loan interest rates could reach up to 7% annually, which will act as a burden on real estate purchases."

Given this situation, buyers' attention is naturally turning to complexes offering 'interest-free interim payments' benefits due to the increased interest burden.

Interim payment loans, which typically cover 60% of the sale price, usually involve a large amount and thus a significant interest burden. However, complexes offering 'interest-free interim payments,' where the construction company bears the interest, have the advantage that the actual contract holders do not bear any interest, making them free from the impact of the recent base rate hike. This also has the effect of lowering the sale price and is considered an optimal real estate purchase method to hedge against risks during periods of rising base interest rates.

Currently, the residential officetel 'Acleur Gwangjin,' which is on sale in the real estate market, is one of the rare complexes offering this 'interest-free interim payment' benefit.

Developed by Wolsong Holdings Co., Ltd. (developer) in the Guui-dong area of Gwangjin-gu, Seoul, 'Acleur Gwangjin' allows the construction company to bear the interim loan interest on behalf of the contract holders, enabling buyers to purchase real estate at a practically lower sale price.

Interest-free interim payments are much more efficient than deferred interest payments. In the case of deferred interest payments, the interest must be paid upon move-in after completion, and considering that the base interest rate could rise to the 8% range, the burden could be substantial.

In addition to this interest-free interim payment benefit, 'Acleur Gwangjin' offers a total of 154 units, all duplex structures with exclusive areas of 45㎡, unlike previous officetel products that mainly consisted of studio units. Depending on the type, it provides about 17 to 19㎡ of service area, offering higher space efficiency and usable area than small apartments or typical officetels.

Moreover, most essential home appliances needed for daily life, including a washing machine, dryer, island dining table, premium refrigerator, electric cooktop, and electric oven, are provided as standard, which is expected to have a sale price reduction effect.

While significantly reducing actual cost burdens, various specialized designs are applied inside and outside the complex to convey a sense of sophistication. 'Acleur Gwangjin' features a floor plan where the bedroom, living room, and kitchen are all separated. Buyers can enjoy independence and freedom in their residential life. Additionally, the complex includes a rooftop infinity pool (a visually boundary-less swimming pool) and a lounge for barbecue parties, allowing residents to enjoy a high-quality lifestyle.

Located in Gwangjin-gu, a key area of Seoul, residents can conveniently enjoy various living infrastructures nearby. 'Acleur Gwangjin' is within a 5-minute walk from Guui Station on Line 2, making it a walkable station area. It is easy to access Jamsil, Gangnam, Euljiro, and City Hall via subway, and Samsung GBC and Jamsil MICE are within a 3 km radius, allowing easy access. Transportation networks such as Jamsil Bridge and Cheongdam Bridge are also available.

Nearby public offices include Gwangjin-gu Office and Gwangjin Police Station, and convenience facilities such as Lotte Department Store, E-Mart, Lotte Mart, and Konkuk University Hospital are close by. Natural environments like Ttukseom Hangang Park, Seoul Children's Grand Park, and Achasan Mountain, which are hard to enjoy in the city center of Seoul, are also within close proximity.

Furthermore, 'Acleur Gwangjin' secures accessibility to the Han River, which is being reborn as a waterfront-centered space like London's Canary Wharf. It also benefits from major ongoing development projects in Seoul, including the Guui Station KT and East Seoul Terminal development projects, urban regeneration around Guui Station, and the Line 2 undergrounding project included in the 2040 Seoul Urban Basic Plan.

In the context of continuous base interest rate hikes, 'Acleur Gwangjin' is proceeding under interest-free interim loan conditions, significantly reducing the risk hedge against rate increases and the burden of financing, making it an optimal product highly regarded by both actual buyers and investors.

Currently, 'Acleur Gwangjin' is operating a model house, and to help buyers easily access information, a variety of related content is also available on the website.

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