Godeok Atera Prices Reach Late 600 Million Won With Options, Raising Concerns Over Builder Profits

The price for an 84㎡ unit at 'Godeok New Town Atera,' jointly developed by LH and Kumho E&C, can reach the late 600 million won range when additional optional items and financing costs are factored in. Although this project is being carried out as a public construction initiative with private sector involvement, there are concerns that it is primarily increasing profits for private construction companies. Criticisms are emerging regarding the sales price of 'Godeok New Town Atera,' a project by the LH and Kumho E&C consortium. The final price for the 84㎡ units, including specialized optional upgrades, reaches the late 600 million won range, leading to accusations that the private construction firms' profits are being prioritized.

The application period for special subscriptions begins on April 27th on Cheongyak Home. The sale price is determined by combining the land cost prepared by LH with the construction costs from private developers and the expenses for additional optional items. At 'Godeok New Town Atera,' the cost of these additional optional items, including appliances, is a point of contention. For the complex, which comprises a total of 630 units, the average sale price for 77㎡ and 84㎡ units is 474 million won and 536 million won, respectively, with an average sale price of 15.4 million won per 3.3㎡. This price point is mid-range compared to units sold around the same time last year in Godeok New Town, such as 'Geumseongbaekjo Yemizi' in A-48 Block (537 million won) or 'Godeok Natural & House-D' in A-4 Block (518 million won).

Additional optional items are not legally mandatory. However, on-site sales representatives often explain that opting out of these options could lead to higher costs later due to the need for subsequent construction work, creating an environment where most buyers feel compelled to select them. Critics argue this structure leads consumers to perceive the initial housing price as lower, only to realize significant additional expenses are incurred. In LH's private-participation public construction projects, optional items are processed with LH's approval, and profits are shared with private partners. Although a price cap system is applied, 'Godeok Atera' has presented an excessive range of optional items even when compared to private developments.

During the public tender for private-participation public construction projects in three blocks, including Godeok, in June 2024, LH indicated it would accept the eco-friendly housing technologies and performance proposed by private construction firms while giving preferential points to the lowest bidders. In July, the Kumho E&C consortium was selected as the preferred negotiator. However, the announced construction cost in the recruitment notice was 201.2 billion won, an increase of over 10 billion won from the initial agreement. While this increase included costs for the commercial facilities and expansion, LH faced criticism for reducing the land development cost from an initial 149.7 billion won to 117.2 billion won, effectively lowering private construction costs by reducing the land development expenses. Complaints have also surfaced regarding the restriction of consumer choice, as only specific brands (LG) of home appliances were offered, excluding other manufacturers. This is seen as counter to the public housing objective of minimizing burdens for those without homes, despite the demand for units remaining high even after Samsung appliances were excluded.