[Practical Investment Techniques] "Lottery-Style Pre-Sale Is a Thing of the Past" End-Users Now Prioritize Value for Money

New Apartments Surpass Market Prices... Reasonably Priced Complexes Gain Attention
Seoul's Average Pre-Sale Price Hits 19.22 Million Won per Square Meter Over Past Year
Up More Than 39% From Previous Year’s Average
Land Cost Portion Jumps from 55% to 71% in One Year
Growing Interest in Public-Private Partnership Pre-Sales Amid Soaring Prices

In areas outside of Seoul's Gangnam district, there has been a series of apartment complexes being sold at prices higher than the surrounding market rates. For end-users looking for new apartments, this results in a significant burden, especially as loan regulations make it difficult to secure funding. According to data from the Housing and Urban Guarantee Corporation, the average pre-sale price of apartments supplied in Seoul over the past year (June 2025 to May 2026) was 19.22 million won per square meter, more than a 39% increase compared to the previous year’s average of 13.82 million won per square meter. Compared to the 27% rise in the average pre-sale price in the greater Seoul metropolitan area and the 13% increase nationwide over the same period, Seoul’s price hike is particularly pronounced.

Last month, the highest pre-sale price for an 84-square-meter unit in the Acro River Sky complex in Dongjak-gu, Seoul, reached 2.7958 billion won. In the previous month, the highest price for an 84-square-meter unit in the newly constructed Ra Clace Jade Pine complex in the nearby Noryangjin 6 district was 2.5851 billion won. By comparison, the average transaction price over the past month for an 84-square-meter unit in the nearby Sando Park Xi, an older apartment complex close to a subway station, was 2.2 billion won. Similarly, in April, the 84-square-meter units in The Sharp Singil Central City in Yeongdeungpo-gu were priced between 1.86 billion and 1.88 billion won, while the same-sized units in the nearby, seven-year-old Singil Central Xi traded at around 1.84 billion won recently.

In the past, pre-sale applications offered the advantage of buying new apartments at prices lower than market value, but that benefit has now disappeared. The rise in pre-sale prices is attributed to increased construction costs due to various domestic and international factors such as war and exchange rates, as well as higher land prices. For Seoul apartments, the land cost now accounts for 71% of the pre-sale price. During the same period last year, land costs made up about 55%, but this share has jumped in just one year. In other regions, the land cost proportion is about half of that. Land costs are determined through appraisal, and as high-demand redevelopment projects have accelerated from the latter half of last year through the first half of this year, they have pulled up the average pre-sale price.

With the ongoing trend of high pre-sale prices, price competitiveness has become a key consideration when choosing new apartments. Complexes offering relatively reasonable prices and high product quality are attracting attention. The growing interest in public-private partnership apartment pre-sales is part of this trend. In these projects, land prepared by public institutions like Korea Land and Housing Corporation (LH) is supplied under a price cap system. Private construction companies handle design and construction, so the apartments are praised for offering brand-level quality at a relatively lower pre-sale price.

For public-private partnership pre-sale applications, the basic requirement is that the applicant’s household owns no home, and income and asset standards must be met. Factors such as subscription account duration and payment history are also considered. If both spouses apply for the same unit and are both selected, only the earlier application is accepted. Prospective newlyweds who have not yet registered their marriage can also apply for special supply for newlyweds, provided they can prove their marriage before moving in, which is another reason for the popularity of this program.

According to LH, in the recent general pre-sale for the Athera public-private partnership in Namyangju Wangsuk 2, there were 23,525 applications for 223 units, resulting in an average competition ratio of 106 to 1. For the Umi Lin Granity in Goyang Changneung, also supplied during the same period, 11,135 people competed for 182 units, posting a 61 to 1 competition ratio. Last month, an 84-square-meter unit in the Gwango New Town Jayeon and Hillstate public-private partnership complex was traded at 1.935 billion won, which is about five times higher than its 2012 pre-sale price of 380 million won.

Anticipated demand for new pre-sale complexes is expected to remain high. Namkwang Construction is building Yokkok District House Story in A-2 block of Bucheon Yokkok District, with 976 units out of a total of 1,464 set aside for public pre-sale. The project is a special supply town for newlyweds and prospective newlyweds, applying a price cap system and offering long-term low-interest financial support. Hyundai Engineering & Construction has also confirmed a July pre-sale schedule for Hillstate Godeok Eliste, a public-private partnership project in Pyeongtaek Godeok International New City. This large-scale complex will consist of 2,122 units in 22 buildings with 2 basement levels to 33 floors above ground, across A-31, 34, and 35 blocks of the Pyeongtaek Godeok International Planning District. The units are primarily 58 to 84 square meters, a size range favored by end-users.

The Goyang Changneung area, one of the 3rd generation new towns, at the time of finalizing the 2020 Urban Master Plan. Photo by Yonhap News

BS Hanyang is building Miryang Sujain The First 1 and 2 in A-1 and S-2 blocks of Bubuk Public Housing District in Miryang, Gyeongnam. Phase 1 will have a total of 744 units, with 426 units available for general pre-sale (New Home general type). In Phase 2, 114 out of 322 units will be available for general pre-sale. This is the first public housing district created in Miryang, characterized by a new town-style residential environment. DL E&C will supply E-Pyunhansesang Bundang First Village next month, with 933 units in the Newlywed Hope Town format.

There are also types that reduce the initial financial burden by applying various pre-sale methods. The S3 block in Goyang Changneung, supplied by LH this month, is the first among the third-generation new towns to implement the profit-sharing model. Although the complex received advance applications in 2022, this is the first official pre-sale using the profit-sharing method.

Profit-sharing pre-sales are supplied at about 70% of market value. After fulfilling the required residency period, if the resident sells the unit back to the public, 70% of the capital gains or losses go to the resident, while the remaining 30% goes to the public authority. LH is currently reviewing revisions to the profit-sharing pre-sale scheme and is considering a new approach for the second half of the year and beyond. Seoul Housing and Communities Corporation (SH Corporation) plans to offer land-lease sales in August in Godeok Gangil District 3. In this method, the land remains owned by the project operator, and only the housing or facilities are sold to buyers. For example, in the final sale in April this year for Magok 17 complex, there were about 20,000 applications for 381 units, demonstrating high demand.

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