South Korea raises basic construction cost index 0.77% to reflect rebar price hikes

South Korea's Ministry of Land, Infrastructure, and Transport announced an irregular adjustment to the basic construction cost index, increasing it by 0.77%. This revision, effective September 15, directly incorporates the recent surge in prices for high-strength rebar.

The basic construction cost index serves as a crucial benchmark for determining the maximum allowable price for apartments sold under the pre-sale price cap system. This system applies to specific areas, including Gangnam, Seocho, Songpa, and Yongsan districts in Seoul, as well as apartment complexes in public housing districts.

This adjustment signals a response to fluctuating material costs within the construction sector. The index is typically reviewed twice a year, on March 1 and September 15, but this unscheduled update reflects the immediate impact of rising rebar prices on housing development costs.