5700 Public Housing Units in the Seoul Metropolitan Area to be Offered by Year-End, High Demand Expected

[Asia Economy Reporter Yoo In-ho] By the end of the year, around 5,700 public housing units on public land will be offered for sale in the Seoul metropolitan area.

In particular, all the supply target districts have excellent locations, and since the supply includes highly scarce units within Seoul city, it is expected that a large number of applicants will flock to apply.

According to the industry on the 5th, from October until the end of the year, a total of 5,715 apartment units will be supplied in public land areas in the Seoul metropolitan area, including Seoul Godeok Gangil District, Wirye New Town (Seoul Songpa and Hanam), Hanam Gam-il District, and Gwacheon Knowledge Information Town.

In the case of Wirye New Town, Seoul Housing and Communities Corporation (SH Corporation) and Korea Land and Housing Corporation (LH) will supply a total of 1,928 units across three complexes in mid-October. Among these, two complexes with 1,676 units fall under the administrative district of Songpa-gu, Seoul, within Wirye New Town.

This is the first new supply in the Seoul area of Wirye New Town in nine years. The remaining one complex with 252 units is located in the Hanam area of Wirye New Town. All the apartments supplied are 85㎡ (exclusive area) or smaller. The sale price is expected to be around 20 million KRW per 3.3㎡. Based on an 84㎡ unit, including balcony expansion costs, the total sale price is expected to be around 700 million KRW.

At Gwacheon Knowledge Information Town, 1,689 public sale units will be supplied at the end of this month. These are three complexes?S1, S4, and S5 blocks?all privately developed housing supplied by Daewoo Engineering & Construction.

The S1 block, "Gwacheon Prugio Ortus," consists of 435 units ranging from 74 to 84㎡, which are small to medium-sized units. The S4 block, "Gwacheon Prugio Eoullim Lavieno," has 679 units ranging from 84 to 120㎡, and the S5 block, "Gwacheon Prugio Desiang," has 584 units ranging from 84 to 107㎡.

Considering that the sale price per 3.3㎡ was 23.71 million KRW during the first sale in June at Gwacheon Knowledge Information Town, the upcoming sale price is expected to exceed 24 million KRW per 3.3㎡.

Next month, 1,602 public units will be supplied in two complexes in Seoul Godeok Gangil District. Hyundai Engineering & Construction will supply 809 units of "Godeok Hillstate" (84?101㎡), and Jeil Construction will supply 793 units. The public sale price in Godeok Gangil District in June was about 19 million KRW per 3.3㎡.

In Hanam Gam-il District, Daewoo Engineering & Construction will introduce 496 units of mixed-use residential apartments called "Gam-il Prugio," ranging from 84 to 114㎡. This is the last supply in Gam-il District. Considering that these are built on commercial land, the industry expects the sale price to be 20?30% higher than the 18 million KRW per 3.3㎡ price at the May sale.

Experts anticipate a large influx of applicants for this sale. Since these are public land units priced significantly lower than surrounding market prices, they are being evaluated as "lottery sales."

In particular, the sale price for the Songpa-gu area in Wirye New Town is analyzed by the industry to be about half of the surrounding market prices. In Gwacheon Knowledge Information Town, the sale price for an 84㎡ unit is around 800 million KRW, whereas nearby units like Raemian Gwacheon Central Suite of similar size were traded for 1.75 billion KRW in April.

In this context, it is expected that many newlyweds and others benefiting from the relaxed special supply conditions under the "7·10 Measures" will apply. Earlier, the government revised the Housing Supply Rules, increasing the lifetime first-time special supply ratio for public sales from 20% to 25%, and expanded the income criteria for newlyweds purchasing homes priced between 600 million and 900 million KRW to 130% of single-earner income (140% for dual-earners).

Ham Young-jin, head of the Zigbang Data Lab, said, "Unlike the 3rd generation new towns, this public land supply includes Seoul, so it will be an opportunity for applicants with high subscription scores who want to continue living in Seoul or are considering entering the Gangnam area."

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