As the era of high presale prices takes hold, a trend is spreading to scrutinize even the "service area" that can be used in daily life, such as balconies and terraces. Even with the same exclusive area, how spacious the space can be used in practice is emerging as a new selection criterion.
The service area is space that is not included in the exclusive area or the supply area but can be additionally used by residents.
According to the presales industry on the 18th, construction firms have recently been highlighting service areas such as balconies and terraces as a product differentiator. As the perception has taken hold in the dwelling presale and sales market that the service area affects home prices, this phenomenon is emerging.
A presales industry official said, "The service area is being evaluated not merely as providing extra space but as a factor that enhances the product appeal of dwellings and satisfaction in actual occupancy," and added, "As the burden of presale prices grows, interest will continue in specialized designs that can secure a larger space within the same exclusive area."
Hana Institute of Finance analyzed in its 2023 report "The economics of balconies" that the service area can be a factor that raises the practical spatial value and price competitiveness of dwellings. According to the report, based on an apartment with a price of 6 million won per ㎡ of exclusive area, if the balcony area increases from 15㎡ to 45㎡, the value of the dwelling is estimated to rise by about 145 million won.
In fact, complexes boasting large service areas are gaining popularity. In Goyang, Gyeonggi Province, KINTEX One City Block 2 applied three-sided balconies to some 84㎡ exclusive types, securing up to 57㎡ (about 17 pyeong) of service area. The 84㎡C type with this specialized design recorded a transaction at 1.418 billion won in June, marking the highest price this year in Goyang for the same area.
Similar cases are appearing in the subscription market. In e-Pyeonhansesang Bundang First Village, supplied in Seongnam, Gyeonggi Province, in Jul., the 59㎡T exclusive type with a terrace design posted a competition rate of 156.5 to 1, the highest within the complex.
In the presale market in the second half of this year as well, complexes emphasizing service areas are expected to roll out one after another. Champions City Phase 1, slated for presale in Sep. in Im-dong, Buk District, Gwangju Metropolitan Autonomous City, will apply three-sided balconies and terrace designs except for some units. It plans to secure up to 54.39㎡ (about 16 pyeong) of service area based on an 84㎡ exclusive type. The complex will be built by WOOMI Construction Co. and Shinyoung C&D, with a total of 3,216 units ranging from 84㎡ to 214㎡ of exclusive area.
Lotte Construction, which opened a model home on the 14th for Sangdong Station Lotte Castle Signature, also plans to apply a specialized three-sided balcony design to some types. The project develops the former Homeplus Co. Bucheon Sangdong store site and comprises a total of 1,859 units with exclusive areas ranging from 84㎡ to 192㎡.