en.Wedoany.com Reported - South Korea's Ministry of Land, Infrastructure and Transport (MOLIT) announced a non-regular adjustment to the basic construction cost on July 15, effective immediately, to reflect the increase in rebar prices. The basic construction cost is one of the components that constitute the upper limit of the sale price for price-capped housing, applicable to public housing sold in public land and private land price-capped housing areas (Gangnam, Seocho, Songpa, and Yongsan districts in Seoul).

This cost is typically announced regularly on March 1 and September 15 each year. According to regulations, if the price of major construction materials fluctuates by more than 15% after three months from the regular announcement, a non-regular adjustment is made. The direct cause of this adjustment is the approximately 18.6% increase in the price of high-strength rebar in early June, following the regular announcement on March 1.

After the adjustment, the basic construction cost for standard floors with an exclusive area of 60 to 85 square meters and 16 to 25 stories above ground has been raised from 2.22 million won per square meter to 2.237 million won per square meter, an increase of 0.77%. The new standard applies to complexes that apply for approval to recruit residents after the 15th. The actual sale price is determined by the local government's sale price review committee, considering factors such as the basic construction cost, land cost, and other additional costs.

Jang Woo-cheol (장우철), MOLIT's Housing Policy Officer, expressed hope that this adjustment will help alleviate difficulties at housing construction sites, where construction costs have risen sharply due to factors such as the Middle East war.