The basic construction cost used to determine the sale price of homes under the price ceiling system will increase by 4.07% starting September 15.
On September 14, the Ministry of Land, Infrastructure and Transport announced that the basic construction cost applicable to the price ceiling system will be officially announced on September 15.
The basic construction cost is one of the components that make up the sale price ceiling for homes subject to the price ceiling system. The sale price is calculated by adding the land cost, basic construction cost, and various additional costs. This cost is regularly announced on March 1 and September 15 each year, and it is adjusted irregularly when the prices of key construction materials, such as high-strength rebar, ready-mixed concrete, window glass, reinforced plywood flooring, and aluminum formwork, surge.
According to the upcoming announcement, the basic construction cost for buildings with 16 to 25 floors and a usable area of 60 to 85 square meters will rise from 223,700 won per square meter, as announced on July 15, to 232,800 won, marking a 4.07% increase. When converted to a standard of 3.3 square meters, this represents an increase from approximately 7.38 million won to 7.68 million won, an increase of about 300,000 won.
Notably, in line with the government's strengthened support for safety investments at all stages of construction, the Public Procurement Service's '2026 Indirect Construction Cost Calculation Standards' announced in April will be reflected, resulting in an increase in indirect construction costs from 604,000 won to 663,000 won, a rise of 9.77%. The rate for indirect labor costs will be adjusted from 14.6% to 18.1%, and other expenses will increase from 6.0% to 6.9%.
The revised basic construction cost will apply to projects that submit applications for occupancy permits after September 15. The actual sale price will be determined by the local government's price review committee, taking into account not only the basic construction cost but also land costs and various additional expenses.
The price ceiling system applies to multi-family housing sold in public land and private land areas such as Gangnam, Seocho, Songpa, and Yongsan districts in Seoul.
A Ministry official stated, "We will reasonably adjust the basic construction cost to reflect fluctuations in construction material prices, ensuring the supply of high-quality apartments that incorporate the latest technologies and construction methods."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.