[2020 Apartment Brand Awards] Catch the Last Train for Pre-Sale Before July's 'Ssanggeulli Regulation'

Expansion of Private Sector Price Ceiling System by Late July
Full Resale Restriction on Pre-sale Rights in Seoul Metropolitan Area and Major Cities Possibly in July

50,000 Houses Nationwide for Sale... New Brand Apartments Also Flooding Market

12,000 Units at Dunchon Jugong, 4,700 Units in Eunpyeong-gu Redevelopment in July
4,500 Units of Raemian Reica County in Busan Also in July

A bird's-eye view of the Dunchon Jugong reconstruction in Gangdong-gu, Seoul. (Provided by Seoul City)

[Asia Economy Reporter Lee Chun-hee] Large-scale summer housing sales are set to take place in the Seoul metropolitan area and major provincial cities. Ahead of the upcoming 'double-barreled' high-intensity regulations expected around the end of July, leading brand-name apartments are competitively launching new sales.

The reason the industry is rushing to sell is that from July 28, the price ceiling system for apartment sales will be expanded to include private land apartments. The areas subject to the price ceiling system include all 13 districts such as Gangnam, Seocho, and Songpa among the 25 autonomous districts in Seoul, parts of five districts including Seongbuk and Dongdaemun, and parts of Gwacheon, Gwangmyeong, and Hanam cities in Gyeonggi Province. Originally scheduled to be implemented on June 28, the enforcement was postponed by three months due to the spread of the novel coronavirus disease (COVID-19).

The restriction on resale of pre-sale rights is also accelerating the industry's pace. From as early as July, comprehensive restrictions on resale of pre-sale rights will be enforced in the Seoul metropolitan area and major provincial cities. In the metropolitan area’s overpopulated control zones, growth management zones, and urban areas of provincial metropolitan cities, resale of pre-sale rights will be completely prohibited until ownership transfer registration.

Because of this, a flood of new pre-sale units is expected not only in June but also in July, which has traditionally been an off-season, as developers try to avoid the regulations. According to Real Estate 114, the number of units to be offered for sale in the metropolitan area and major provincial cities over June and July will reach 49,777 units.

The most attention is focused on the Dunchon-dong Jugong Apartment reconstruction in Gangdong-gu, Seoul. This mammoth complex has a total of 12,032 units, with four major construction companies participating as a consortium in the construction. The general sale units, excluding those allocated to association members, amount to a whopping 4,786 units. Although there are differences of opinion between the Housing and Urban Guarantee Corporation (HUG) and developers regarding the general sale prices, it is widely expected that the general sales will proceed before the price ceiling system is implemented due to the heavy financial burden of delaying sales.

In Eunpyeong-gu in the northwest of Seoul, redevelopment units are pouring out. A total of 4,745 units, including Susaek 6 (1,223 units), Susaek 7 (672 units), Susaek 13 district (1,464 units), and Jeungsan 2 district (1,386 units), are planned to be offered for sale in July. Additionally, in Dongdaemun-gu, 'Raemian Elinity' (1,048 units), and in Yangcheon-gu, 'Sinwol Paragon' (299 units) are also launching their last sales before the price ceiling system. In the Gyeonggi and Incheon areas, Osan City's 'Osan Wondong Lotte Castle' (2,341 units) and redevelopment in Juan 3 district, Michuhol-gu, Incheon (2,054 units) are also taking the last chance before the regulations.

Perspective view of 'Raemian Ray County' in Yeonje-gu, Busan. (Provided by Samsung C&T)

In Busan, large-scale complex sales are also scheduled. The 'Raemian Reicaunty' redevelopment project in Geoje 2 district, Yeonje-gu, Busan, is planned for July. It consists of 4,470 units, with more than half, 2,759 units, allocated for general sale. In June, Daeyeon Beach reconstruction (1,374 units) and Daeyeon 4 redevelopment (998 units) in Nam-gu, and Busan North Port redevelopment D3 district (872 units) in Dong-gu are planned for sale.

Elsewhere, new apartments are seeking homebuyers in various provincial metropolitan cities, including 'Seodaegu Station Bando Yubora Centum' (1,678 units) in Seo-gu, Daegu, 'Bangnim-dong Gold Class' (420 units) in Nam-gu, Gwangju, and a 360-unit mixed-use residential complex in Gayang-dong, Dong-gu, Daejeon.

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