Suncheon Hanyang Sujain's High Sale Price a Big Hit... Controversy Over Park Special Act 'Favoritism'

Claims That Resale Restrictions or Sale Price Caps Should Apply When Citizens' Land Is Expropriated

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] The pre-sale competition rate for ‘Hanyang Sujain,’ scheduled to be built in Yongdang-dong 175, Suncheon-si, Jeollanam-do, soared to a record high of 47.9:1, marking the highest subscription rate in Suncheon’s history.

Regarding this record, some point out that not only genuine buyers but also speculative forces aiming for resale of pre-sale rights seem to have been involved.

On the 27th, according to a real estate official who requested anonymity, Suncheon Hanyang Sujain is the first apartment complex to be supplied in Suncheon under the Act on Urban Parks and Green Spaces (hereinafter referred to as the Park Special Act).

However, looking at the pre-sale prices, the 79A (31-pyeong) type recorded the highest price per pyeong in Suncheon’s apartment supply history (excluding downtown) at around 10.7 million KRW per pyeong. Also, the 84A (31-pyeong) type was priced at about 10.2 million KRW per pyeong, raising concerns that smaller unit sizes were priced higher.

According to the Park Special Act, apartments can be built on up to 30% of the total park area, and the park development project is an urban planning facility project, allowing the developer to expropriate the necessary land, which is disadvantageous to landowners and favorable only to the developer in terms of land acquisition.

Also, the timing of land expropriation is cited as a ‘special privilege,’ as the requirement to negotiate land expropriation with the developer while the land is designated as a ‘park’ has been continuously criticized by real estate experts and landowners.

It is argued that there is a significant difference in appraisal value when the project site is appraised under the land expropriation compensation standard while designated as a ‘park’ compared to when it is appraised as developable land such as natural green space. Since the project site covers about 300,000㎡, an enormous difference in amount is expected, making calculation difficult.

A city official said, “The high pre-sale price of Hanyang Sujain is because it is excluded from ‘pre-sale price review,’ and it is the principle that the construction company sets the pre-sale price.” He added, “We tried to lower the pre-sale price as much as possible with the construction company, but it was unavoidable.”

Citizen A said, “It is difficult to understand why the pre-sale price of apartments built by expropriating citizens’ land is set so high,” and argued, “When expropriating citizens’ land for a project, resale restrictions or pre-sale price caps should be applied.”

Meanwhile, Suncheon has three apartment supply projects applying the Park Special Act, with two more to come. There are criticisms that the pre-sale price should not be left solely to the developer’s conscience but that approval should be granted only after negotiation or acceptance of conditions with the developer during the urban planning review.

This content was produced with the assistance of AI translation services.