"When Price Ceiling Applied, Sale Price Higher"... Dunchon Jugong, Internal Conflict Deepens Over Sale Method

Median General Sale Price per 3.3㎡ Requested by Association Private Institutions 31.83 Million KRW
Opposition Rises as It Exceeds HUG's 29.10 Million KRW

Exterior view of Dunchon Jugong Apartment.

[Asia Economy Reporter Choi Dong-hyun] Internal conflicts over the pricing of general sales are intensifying in the reconstruction project of Dunchon-dong Jugong Apartments in Gangdong-gu, Seoul. This is because the simulation results recently disclosed by the union showed that the expected general sales price under the price ceiling system is actually higher than the price suggested by the Housing and Urban Guarantee Corporation (HUG).

According to industry sources on the 10th, the Dunchon Jugong Reconstruction Union recently revealed the results of a 'Price Ceiling System Research Report' at an emergency delegates' meeting. This research was commissioned by the union last September to a private research firm called the Korea Future Strategy Institute. According to the report, if the Dunchon Jugong project is subject to the price ceiling system, which will be implemented at the end of July, the general sales price per 3.3㎡ is expected to be at least 28.42 million KRW, a median of 31.83 million KRW, and a maximum of 35.61 million KRW. Based on the median value, this is lower than the 35.5 million KRW initially set by the union but higher than the 29.10 million KRW recently suggested by HUG.

Following the disclosure of the report, union members have protested, demanding the suspension and dismissal of the union head. They argue that since there is a possibility of receiving a higher sales price, the union is recklessly trying to advance the sales timing before the application of the price ceiling system.

In fact, the union plans to hold an extraordinary general meeting on July 9 to propose an amendment to the 'Management Disposition Plan' that sets the general sales price at 29.10 million KRW per 3.3㎡ as suggested by HUG. One union member stated, "Looking at the research results, if the price ceiling system is applied or post-sale is conducted, a higher general sales price can be obtained, so I don't understand why they are rushing the sales."

However, the union maintains that the research results are merely 'theoretical' figures. In a press release issued the previous afternoon, the union stated, "Given the current government's firm housing policy stance, it is risky to choose business methods such as the price ceiling system or post-sale solely based on a private institution's research report," and added, "There is a high possibility that the sales price will fall below what HUG suggests."

The union also holds a negative view on post-sale due to the potential burden of enormous financial costs. A union official said, "We are currently reviewing the costs that would arise if post-sale proceeds with the current construction company," and added, "The related results will be announced around next week."

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