Selling Prices for Pankyo Apartments May be Higher than Expected

It seems likely that the selling price of small middle-sized apartments with private unit areas of 25.7 pyong (a typical standard apartment is around 33 pyong) and under in Pankyo, a new city in Seongnam, Gyeonggi Province, will rise to up to the 13 million won mark.

This is approximately the same price level for an apartment in the 30-pyong range in neighboring Bundang, and with the recent illegal transactions for subscription accounts, it is expected that the outlook will be somewhat different from just anticipating marginal profits.

According to the Korea Land Corporation, the Korea Institute of Construction Technology (KICT), and construction firms, it has been analyzed that the selling price for Pankyo apartments with private unit areas of 25.7 pyong and under, which a “ceiling price system” applies to, will be 10.5-13 million won per pyong, and for middle-large size apartments that are over 25.7 pyong, 20-22 million won per pyong.

This is due to the high possibility that the land price may increase highly from the original forecast (4.5 million won).

Vice Director of the Pankyo project at KLC Park Jeong-seok said, “It is hard to grasp the precise figure. However, when looking into the other recent cases of supplying the land, it is highly possible that the supply price for apartments 25.7 pyong and under will be seven to eight million won per pyong and nine million won or over for middle sized and large sized apartments.”

As for the construction expenses, there are high possibilities that the “standard construction expense” (3.39-3.59 million won per pyong) announced by KICT on Thursday, February 3, will apply.

When simply adding all this up and finding the average, it comes to approximately 10.98 million won per pyong. However, like what the KICT announced that day, if an underground parking lot is to be additionally built, some 1 million won per pyong will be increased, and so the total price will reach approximately 12 million won per pyong.

A manager for the Pankyo project at “S” Constructions said, “It is a necessity to build an underground parking lot these days. Inside the company, we are preparing for sales in the 12 million won area.”

In-Jik Cho cij1999@donga.com