Major construction companies have significantly lowered the conditions for subscription since the beginning of the year and have begun to recruit residents. Unlike the usual practice of requiring a deposit of 10-20% of the sale price, cases have emerged where only 5% is accepted as a deposit. Some offer benefits of not charging any additional expenses until moving in, with a minimum amount of about 5 million won.
This phenomenon is particularly seen in complexes bearing brand names from major large construction companies such as Hillstate and Lotte Castle. The real estate industry has evaluated this as a 'desperate measure' by builders to clear out unsold inventory. However, those that have set such conditions often belong to complexes where unsold units occurred during the first recruitment of residents, meaning individuals who have already signed contracts are not eligible for these benefits.
According to the real estate industry on the 21st, Kyeyang Lotte Castle Park City is currently recruiting residents with a 5% deposit for certain types, including types 59, 84, and 108. While a 10% deposit was initially required during the first recruitment of residents in April last year, the conditions have been relaxed. Lotte Engineering & Construction is supplying a total of 3,053 units through an urban development project in Hyosung-dong, Gyeyang District, Incheon, at the site located at 101-21. The first phase consists of 20 buildings, 1,964 units (with a dedicated area of 59-108㎡), with two basement floors and a maximum of 26 floors above ground, while the second phase will be built with ten buildings, 1,089 units (with a dedicated area of 84㎡), under a maximum of 25 floors above ground.
Many places also allow for the initial signing of contracts with around 5 million won when the 5% sale price is broken down. The 'Hillstate Osan The Class' built by Hyundai Engineering is continuing sales under the condition of only collecting a 5% deposit until moving in. This is a project that constructs a total of 970 units in 12 buildings across 23 floors above ground and two basement floors in Yangsan-dong, Osan City, and is expected to be available for move-in by August 2027.
This complex, which supplies all units with a dedicated area of 84㎡, is sold in the range of 664 million won to 699 million won, only receiving 5% of this price, which amounts to 33.2 million won to 34.95 million won. Notably, at the time of the first contract, individuals can sign a contract for just 7,970,000 won, which includes a 5 million won deposit and a balcony extension fee of 2.97 million won. The remaining 5% must be paid 15 days after signing the contract, and no additional payment is required before moving in. The initial recruitment announcement last October set a 10% deposit as the sale condition. An industry insider noted, 'With about 55% of unsold units, they are relaxing the terms to attract residents.'
Starting from the 21st, Daewoo Engineering & Construction's 'Yongin Prugio One Cluster' has set the payment conditions where individuals need to pay 5 million won at the time of signing, with the remaining 5% of the sale price, amounting to 18.57 million won to 23.69 million won, due 30 days later. Additionally, 'Yangju Yongam Yeongmu Yedaeum The First' (construction company Yeongmu Tokwon), which will start recruitment on the 31st, is also expected to begin sales under the same conditions. This requires 5 million won at the time of signing, with the remaining 5% of 11.37 million won to 20.96 million won due seven days later.
An insider in the real estate industry commented, 'At a time when unsold units are a pressing concern, it's crucial for construction companies to offload some unsold inventories, even if it means giving up planned normal profit levels and incurring some losses or reducing profits.' They noted that builders often offer shocking conditions, such as relaxing contract terms to take minimal deposits or even covering the interest on interim loans.
Go Jun-seok, chief professor at Yonsei University's Sangnam Business School, stated, '(The complexes with relaxed contract conditions due to unsold inventory) indicate a declining future investment or residential value.' He advised that rather than focusing solely on the low deposit conditions, it would be better to examine the options more cautiously before signing a contract.