"No Additional Points Competition, Expecting Billions in Profit"…'Gangnam Alone' Bidding Starts Tomorrow

[Asia Economy Reporter Kim Yuri] Twenty-eight units of 'Jupjup' (meaning 'picking up') properties, which can expect several hundred million won in capital gains, are available in the Gangnam area of Seoul. Unlike subscription housing, there is no need to compete based on points, and mortgage loans are expected to be possible, attracting the interest of prospective buyers.

According to the industry on the 7th, Aegis Asset Management will hold a public auction for 28 units of the 'Samsung World Tower' apartment in Samseong-dong, Gangnam-gu, Seoul, from the 8th to the 12th. This apartment is a standalone building with 46 units in a 14-story building completed in 1997. It is located near Gangnam-gu Office Station on Subway Line 7 and the Bundang Line. Aegis Asset Management purchased the entire building from an individual in June for a remodeling development project but withdrew the plan and is reselling it after four months. Among the total 46 units, 18 units with remaining lease contracts will be sold later according to the contract termination schedule.

◆Price= The sale prices by exclusive area are ▲59㎡ from 823.6 million to 915.2 million KRW ▲84㎡ from 1.1799 billion to 1.3708 billion KRW. For the 59㎡ units, the price is about 400 to 500 million KRW cheaper than the surrounding market price. Nearby, a 139-unit Seoktap Apartment with 59.82㎡ was traded last month for 1.38 billion KRW (8th floor), and a 198-unit Hyundai Apartment with 59.83㎡ was traded in June for 1.45 billion KRW (4th floor).

◆Participation method= From the 8th to the 12th, bids can be submitted for each unit through the Korea Asset Management Corporation (KAMCO) electronic asset disposal system Onbid. Only one unit per person can be applied for. The sale will be conducted by a lottery system rather than a competitive bidding system. If there are two or more qualified applicants for a unit, up to five backup winners will be selected before the lottery. The winners will be decided by lottery on the 13th.

◆Payment schedule and loan availability= A bid deposit amounting to 10% of the sale price is required and will be refunded if unsuccessful. The sales contract must be signed by November 10, with a down payment of 10% of the sale price. The remaining 90% must be paid by the balance payment date on December 22. Since this is not a subscription, applications can be submitted without a subscription savings account. As the sale price of each apartment is below 1.5 billion KRW, mortgage loans are expected to be available for non-homeowners.

◆Precautions= Since Samseong-dong is a land transaction permission zone, the successful bidder must obtain transaction approval from Gangnam-gu Office. The approval application must be submitted between the 14th and 16th, and the land transaction permission must be granted before the contract deadline (November 10). The buyer must reside for two years, and although homeowners can apply, they must provide reasons for acquiring an additional residence. A plan for handling the existing home is also required. Experts point out that compared to nearby apartments, the number of units is small, reconstruction is difficult (floor area ratio 333%), remodeling possibilities are low, and various conditions such as internal structure should be considered.

(Photo: Naver Street View)

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