Soaring Sale Prices Fuel Shift to 'Price-Capped' Complexes... 'Cheongna Arc One Prugio' Draws Interest

Basic construction costs raised three times this year alone... up more than KRW 150,000 per square meter in a year
Price competitiveness stands out as sale prices rise... housing subscription demand shifts toward complexes subject to the price ceiling system

Homebuyers in the subscription market are showing strong interest in complexes subject to the price ceiling system, judging that current sale prices are the lowest they are likely to be amid rising construction costs and basic construction costs.

The basic construction cost used to calculate sale prices for homes subject to the price ceiling system has been raised three times this year alone. On September 15, the Ministry of Land, Infrastructure and Transport raised the basic construction cost by 4.07%, from KRW 2,237,000 to KRW 2,328,000 per square meter. This followed the regular notice in March, which raised it by 2.12%, and an unscheduled adjustment in July, which raised it by 0.77%. The current figure is more than 7% higher than the KRW 2,174,000 recorded in September 2025. The July adjustment reflected an approximately 18.6% rise in the price of high-strength rebar since March, while this latest increase reflected a 9.77% rise in indirect construction costs.

Higher construction costs are pushing up sale prices across the board. According to the Korea Housing & Urban Guarantee Corporation (HUG)'s report on private apartment sale prices, the average sale price per 3.3 square meters for private apartments in Seoul over the 12 months through July was KRW 62.09 million, up 36.6% from KRW 45.44 million a year earlier. Over the same period, prices in Incheon and Gyeonggi Province also rose by 7.3% and 6.8%, to KRW 20.93 million and KRW 23.78 million, respectively. The construction cost index stood at a preliminary 138.59 in July, up 5.78% from a year earlier, according to the Korea Institute of Civil Engineering and Building Technology, indicating that upward pressure on sale prices remains.

Interest in complexes subject to the price ceiling system is also evident in the housing subscription market. From January through September this year, the average first-priority competition rate for privately supplied complexes subject to the system nationwide was 6.75 to 1, 1.8 times the 3.68 to 1 rate for complexes not subject to it. In July, "Sejong Woomi Lynn Center Park" in Sejong received 4,250 applications for 240 homes available to first-priority applicants, posting an average competition rate of 17.71 to 1. That same month, "Hoban Summit Pungmu III" in Gimpo, Gyeonggi Province, received 2,443 applications for 266 homes, for an average rate of 9.18 to 1.

"With sale prices continuing to rise and increases in basic construction costs being reflected in stages, interest in complexes subject to the price ceiling system is likely to continue," a real estate expert said. "In areas such as Cheongna International City, where new supply has been limited for a long time, it is difficult to predict when future supply will come. Buyers should also consider the significance of the prices of new complexes being supplied now under the price ceiling system."

This is expected to accelerate the shift toward complexes subject to the price ceiling system, where buyers can expect substantial housing cost savings compared with surrounding market prices.

As sale prices continue to rise, new complexes being supplied under the price ceiling system are drawing attention.

Cheongna Smart City Co., Ltd. plans to put "Cheongna Arc One Prugio" on the market this month in the M5 block of the Cheongna International Business Complex in Seohae-gu, Incheon. The project is being built by Daewoo Engineering & Construction and will comprise six buildings, with five basement levels and up to 49 floors above ground. It will include 868 apartments with exclusive-use areas of 84 and 103 square meters and 987 officetel units with exclusive-use areas of 105, 121 and 136 square meters, for a total of 1,855 units. The price ceiling system will apply to the apartments.

This will be the first supply of a price-ceiling apartment complex with at least 500 homes in Cheongna International City in approximately 10 years, since 2017. Together with the nearby "Cheongna Peak One Prugio," it will form a Prugio-branded town with a total of 2,911 homes. Hana Financial Group's Hana Dream Town is located near the complex, while Starfield Cheongna is under construction with an opening targeted for 2028. The planned International Business District Station on Seoul Subway Line 7's Cheongna extension is also being developed, with the first phase scheduled to open in 2030.

Bando Construction plans to put "Gyeyang New Town Kaive Ubora" on the market this month in blocks AC3 and AC4 of the Gyeyang District in Gyeyang-gu, Incheon. The complex will combine residential and commercial space, with two basement levels, 15 floors above ground and 16 buildings. It will have 1,110 homes with exclusive-use areas ranging from 84 to 93 square meters. As it is located on publicly developed land, it is expected to be subject to the price ceiling system. Bakchon Station on Incheon Subway Line 1 is nearby.

Hyundai Engineering & Construction plans to put "Banpo The H Classic" on the market in November. The project will redevelop Banpo Jugong Complex 1 (Sections 1, 2 and 4) in Banpo-dong, Seocho-gu, Seoul. Of the 5,002 homes in the complex, 1,832 with exclusive-use areas ranging from 59 to 130 square meters will be offered for general sale, and the price ceiling system will apply. Gubanpo Station on Subway Line 9 is nearby, and the complex borders Banpo Hangang Park.

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