Price of Small Apartments in Pangyo Will Be 10.53 Million Won per Pyeong

It is expected that small 32-pyeong (25.7 pyeong of actual living space) apartments in Pangyo, Seongnam, Gyeonggi Province, to be sold next March, will be priced at 10.53 million per pyeong. This is according to the Ministry of Construction and Transportation’s declaration on September 9 that the price limit for house sales should not go above 1.003 on the construction cost index.

The construction cost index takes into consideration all variables that can affect the construction costs of apartments such as prices of construction material and wages. If the index is 1.003, it means that construction costs have increased by 0.3 percent during the past six months.

If this is applied to apartments of 32-pyeong or less in Pangyo, the basic construction cost is 3.39 million won, and land prices are averaging 6.14 million won, making the price for each pyeong about 10.53 million won. Ministry of Construction and Transportation Housing Policy Team Chief Park Sun-ho said, “The most recent construction cost index, which is announced every six months, will be applied. If the Pangyo apartments will be sold before March 9 next year, then the recently announced index will be applied.”

As for apartments with living space larger than 25.7 pyeong, which will be applied with the Housing Bond Bid, the government has not yet determined the basic construction costs, so the newly announced construction cost index will not be applied.

Seung-Heon Lee ddr@donga.com