English translation of the original Korean report. Images and source documents may contain Korean text.

On the 9th, as contracts begin for Pyeongtaek Godeok New City’s ‘Hillstate Godeok Ellyst,’ which had 1,473 undersubscribed units, 400 units of 84㎡ (exclusive area) in the same new city, priced higher than Ellyst, will be offered for subscription. While Godeok apartment prices are rising this year, subscription results are varying significantly depending on the location.

According to the resident recruitment announcement on the 5th, 623 units of ‘Pyeongtaek Godeok Umi Lynn The Premier’ will accept special supply applications on the 9th, first-priority applications on the 10th, and second-priority applications on the 11th. The project’s implementation and construction are jointly handled by three companies: Umi Construction, GS Engineering & Construction, and ESI. It is reported that the three companies applied for the 2024 Korea Land and Housing Corporation (LH) public offering with Umi Construction holding a 60% stake, GS Engineering & Construction 35%, and ESI 5%. Calculating the average sale price for 84㎡ based on the announcement, it is 581.75 million won, with the highest price being 591.3 million won.

This year, the average sale price for 84㎡ units in Godeok jumped from 536 million won for Atera in April to 576.03 million won for Umi Lynn Prestige in June. In September, Godeok Ellyst was 549.51 million won for Block A65 and 564.12 million won for Block A12. All of these were subject to the housing price cap system, but The Premier is 45.75 million won higher than Atera.

Subscription results did not move in tandem with prices. For Atera’s 580 units, excluding special supply, only 164 people applied, resulting in a competition ratio of 0.28 to 1. Sujaein Punggyeongchae Complex 1 and 2 only reached 0.47 to 1 and 0.48 to 1, respectively. For Godeok Ellyst, with Hyundai Engineering & Construction holding 60% and Dongbu Corporation and Umi Construction each holding 20% stakes, only 235 applications were received for the 1,708 units offered for general supply. In contrast, the more expensive Prestige 84㎡ Type A recorded a first-priority competition ratio of 4.05 to 1.

■ Northern Edge vs. Administrative Town Front: Same Godeok, Different Outcomes

The deciding factor is location. Godeok Ellyst is located on the northern edge of the new city and is approximately 4.5 km away from Samsung Electronics’ Pyeongtaek Campus. The Premier faces the administrative town, which is the planned relocation site for the new Pyeongtaek City Hall building and the City Council, across Godeok Jungang-ro.

The supply methods are also different. Public housing sales typically allocate about 85% of units for special supply and come with a three-year residency requirement, but The Premier, being private housing, has no residency requirement. LH stated regarding Godeok Ellyst that ‘the sale price was set below the price cap.’

Even a good location is not a cause for complacency. Umi Construction explained that it is ‘a follow-up complex to Prestige, which was previously sold out,’ and its official website also states ‘100% Sold Out.’ However, Prestige re-offered 192 uncontracted units out of 743 in July through a lottery for remaining units.

The price of The Premier reflects an increase in construction costs. The highest price for the same 84㎡ Type A is 4 million won higher than Prestige, with land costs decreasing by 3.58 million won and construction costs increasing by 7.58 million won. In the interim, the government raised the standard construction cost in July and September. The ‘other project-related expenses’ in the announcement amount to 52.56 billion won, which is 7.2 billion won more than Prestige’s 45.32 billion won. The announcement stated that there would be no post-verification.

Existing apartments also show varying trends. According to the Ministry of Land, Infrastructure and Transport’s actual transaction data, the average transaction price for 84㎡ units in Godeok-dong from August to October was 860 million won for Hillstate Godeok Central and 675.43 million won for Hoban Summit Godeok New City. Although The Premier’s sale price is lower than these, the total number of unsold units in Pyeongtaek City increased to 3,608 in August, up by 97 units from the previous month.

Supply will continue. Hyundai Engineering & Construction plans to supply a follow-up complex in Godeok, including 1,443 units of 84㎡, within the year. For Godeok Ellyst, remaining units will be revealed after contracts conclude on the 11th, and The Premier will announce its lottery winners on the 17th. Umi Construction’s largest shareholder is Chairman Lee Seok-jun, who held a 43.79% stake as of the end of last year.

Meanwhile, Umi Construction also has a history of sanctions related to public land bidding. In November last year, the Fair Trade Commission (FTC) ruled that Umi affiliates had unfairly supported five affiliates with no track record by funneling 499.7 billion won worth of construction projects to them in order to meet LH public land bidding qualifications. This was a case of ‘work funneling’ for so-called ‘bee swarm bidding.’

The FTC imposed a fine of 48.379 billion won and referred Umi Construction’s corporate entity to the prosecution, and it is reported that the prosecution raided its headquarters and other locations last May. Whether charges have been filed is not known. The land cited by the FTC as examples of successful bids were Gunsan and Yangsan Sasong, and Godeok was not included.