'Le El Sinbanpo' Attracts Cash-Rich Buyers

1st Priority Subscription Competition Rate 124.7 to 1... High-Intensity Loan Regulations Rendered Ineffective

[Asia Economy Reporter Choi Dong-hyun] The government's stringent loan regulations appear to have no impact on the 'lottery-like sales' in Seoul's Gangnam area. 'LeaL Sinbanpo,' a reconstruction complex of Sinbanpo 14th Apartment in Jamwon-dong, Seocho-gu, Seoul, attracted over 8,000 applicants despite a sale price exceeding 1 billion KRW. This is analyzed to be due to the sale price being 1 billion KRW lower than the market price.

According to the Korea Real Estate Agency's subscription homepage on the 31st, LeaL Sinbanpo, which held its first-priority subscription the day before, received 8,358 applications for 67 units, recording a competition rate of 124.7 to 1. This is more than twice the average competition rate of 65 to 1 for Gaepo Presidents Xi in Gaepo-dong, Gangnam-gu, the first Gangnam area sale of the year in January (reconstruction of Gaepo Jugong Complex 4).

The 100㎡ (exclusive area) units of this apartment had only 8 units supplied but attracted 3,267 applicants, showing the highest competition rate of 408.3 to 1. Considering that the sale price exceeds 1.5 billion KRW, making group loans for the intermediate payment impossible, and that mortgage loans are also unavailable if the market price exceeds 1.5 billion KRW at move-in, it means that many cash-rich buyers flocked.

The sale price per 3.3㎡ of LeaL Sinbanpo is 48.49 million KRW, with all housing types exceeding 900 million KRW. The sale prices by exclusive area are 1.137 billion KRW for 54㎡, 1.23 billion KRW for 59㎡, 1.653 billion KRW for 84㎡A, 1.672 billion KRW for 84㎡B, and 1.967 billion KRW for 100㎡.

Despite the real estate market slump due to the COVID-19 pandemic and the recent decline in Gangnam area housing prices, the large number of applicants for LeaL Sinbanpo seems to be because winning the lottery can yield a high market price difference of about 1 billion KRW. Based on 84㎡, the market price around the complex is about 2.5 billion KRW, and the price of the new apartment move-in rights approaches 3 billion KRW. As the pre-sale price ceiling system is expected to be fully applied in the future, the supply of new apartments is likely to decrease sharply, so the 'Gangnam premium' fever in the subscription market is expected to continue.

Meanwhile, LeaL Sinbanpo is being developed with 3 buildings, 3 basement floors, and 22 to 34 floors above ground, totaling 280 households. It is accessible via the Express Bus Terminal Station where subway lines 3, 7, and 9 intersect, and is adjacent to the Express Bus Terminal commercial area including Shinsegae Department Store Gangnam Branch and Central City.

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