The Ministry of Land, Infrastructure and Transport said it will issue the regular notice of the standard construction cost applied to price-capped dwellings on the 15th.
The standard construction cost, which underpins the calculation of pre-sale prices, is a key factor that forms the price cap along with land costs and various add-ons. The government issues regular announcements twice a year (Mar. 1 and Sept. 15) in line with market conditions and has also put in place a system to adjust from time to time if prices of key materials surge.
The applicable areas are multifamily dwellings within zones designated for the price cap on private land, including public housing sites and Seoul's Gangnam, Seocho, Songpa and Yongsan districts.
Under this adjustment, the standard construction cost for above-ground floors (16–25 floors or fewer, exclusive area 60–85㎡) will be raised 4.07% to 2,328,000 won per ㎡ from 2,237,000 won per ㎡ (based on the ad hoc notice on July 15, 2026).
In particular, as more funds have been directed to strengthen safety measures at construction sites, indirect construction costs rose sharply. Under the "2026 cost-estimation standard for indirect construction costs" released by the Public Procurement Service in April, the indirect labor cost ratio (14.6%→18.1%) and other expense ratio (6.0%→6.9%) were raised, pushing indirect construction costs up 9.77% to 663,000 won from 604,000 won per ㎡.
The new standard will apply to dwelling complexes that request local government approval for tenant recruitment after this date. The final pre-sale price will be confirmed after the standard construction cost is added to land development costs and various add-on items and then reviewed by each local government's price review committee.
The Ministry of Land, Infrastructure and Transport (MOLIT) said it plans to adjust construction costs periodically to reflect changes in raw material prices so that high-quality apartments using new technologies and the latest methods can be supplied, while expanding supply to enable low-income people without dwellings to secure dwellings at a reasonable expense.