Reconstruction Apartment Sale Prices Actually More Expensive

"How much difference will there be between the sale prices for members of reconstruction apartment associations building apartments on their own land and the market prices of nearby apartments?"

Gyeonggi Province analyzed the sale prices for association members and market prices of surrounding apartments across 15 reconstruction apartment complexes implemented in the Gyeonggi region including Suwon, Anyang, and Gunpo since 2004, and announced the results on the 20th.

The results showed that reconstruction apartment sale prices for association members building apartments on their own land were on average 1.5% more expensive than nearby apartment market prices.

Baekjo Apartments in Seoksu-dong, Anyang were sold 34.8% higher than nearby apartment market prices, and nearby Seoksu-dong Jugong Complex 2 was 15.8% higher, with 6 out of the total 15 complexes priced higher than market value.

Meanwhile, the remaining 9 complexes, including Songnim in Jeongja-dong, Suwon, Jugong in Kimryangchang-dong, Yongin, and Gwanyang Housing in Gwanyang-dong, Anyang, were approximately up to 20% cheaper than market prices.

Regarding why reconstruction apartment sale prices for association members appeared similar to or higher than nearby apartment market prices, Gyeonggi Province stated that it is difficult to understand.

A provincial official said, "We typically expected reconstruction apartments to be relatively inexpensive since urban infrastructure is already in place and buildings are constructed on land owned by association members, but when we received the data, they turned out to be similar or actually more expensive," adding, "I suspect there may be separate side agreements between association members and construction companies to maintain apartment prices after move-in."