"Sale Price Drops by 2 Billion Won Due to Jeon Cheongjo"... What’s Next for Ultra-Luxury Signiel?

Signiel Prices Plunge After Jeon Cheongjo Incident
Brand Value Drops Amid Image Deterioration
"Better Vacant Than Lowering the Rent"

While Lotte World Tower Signiel Residence, regarded as one of Seoul's ultra-luxury residential areas, has recently experienced a sharp decline in market value and a deterioration in its image over the past few years, the story of a homeowner who continues to pay millions of won in monthly maintenance fees while leaving the property vacant has come to light.

'Turbo832', a YouTuber and former accountant, recently highlighted the current situation at Signiel Residence on his channel. According to the video, homeowner A purchased a 181-square-meter (Type 90A) unit in Signiel Residence within Lotte Tower in Jamsil-dong for approximately 5.6 billion won three years ago. However, despite putting the property up for rent over the past year, A has been unable to find a tenant and has left the unit empty, reportedly paying about 3.2 to 3.3 million won in monthly maintenance fees during this time.

Lotte World Tower Signiel Residence, known as one of Seoul's ultra-luxury residential areas, has recently experienced a sharp decline in market value and a deterioration in its image over the past few years. Photo by Hotel Lotte

Rather than lowering the rent, A chose to keep the property vacant. Turbo832 analyzed, "It appears that the monthly rent was set at around 17 million won, but there was no rental demand," adding, "The lost rental income over the past year alone is estimated at 200 to 300 million won, while annual maintenance fees amount to roughly 40 to 60 million won."

The YouTuber diagnosed that the problem lies not simply in the drop in market value, but in the damage to the property's image. He stated, "Over the past three years, the sale price of Signiel has fallen by nearly 20%. I believe the Jeon Cheongjo incident has had a significant impact. As the status-symbol characteristics of this luxury brand and residential area have collapsed, demand from ultra-high-net-worth individuals has disappeared."

In fact, according to the Ministry of Land, Infrastructure and Transport's actual transaction data, a 190-square-meter Signiel unit dropped from 8 billion won (47th floor) in November 2022 to 6.05 billion won (50th floor) in April this year-a decrease of over 2 billion won. The 205-square-meter unit fell from 7.8 billion won in May 2022 to 6.985 billion won in March this year.

There is a consensus that the Jeon Cheongjo incident dealt a decisive blow to Signiel's image. Jeon, the former fianc? of fencer Nam Hyunhee, lived at Signiel and projected a luxury lifestyle, but in reality, was only on a three-month rental contract. Additionally, there have been repeated cases where individuals involved in cryptocurrency scams used the residence as a backdrop to deceive victims, further damaging its reputation.

The YouTuber pointed out, "With BJs, streamers, and self-proclaimed entrepreneurs flocking here, Signiel has been branded a 'haven for fraudsters.' The property is being consumed for promotional purposes, and negative viral marketing has accumulated through questionable lectures and products being sold."

Among current residents, there are growing calls for a verification system for tenants that matches the status of a luxury residence. Some argue, "Like in the United States, there should be procedures to check criminal records and credit status before moving in."