"Let's Catch the Market"… 900 People for 2 'Jupjup' Units at Boramae SK View

▲Visitors at the model house during the sale of 'Boramae SK View' in Yeongdeungpo-gu, Seoul.

[Asia Economy Reporter Kim Hyemin] Approximately 900 people flocked to apply for two unsold units at Boramae SK View in Singil-dong, Yeongdeungpo-gu, Seoul (commonly known as ‘Jupjup’), which sparked controversy due to reflecting market prices. Despite government regulations and prices not differing significantly from market value, the application rate surpassed that of general subscription competitions.

According to the Singil 5 Redevelopment Promotion District Housing Redevelopment Association on the 1st, 913 people participated in the subscription held the previous day, recording a competition rate of 457 to 1. The ‘Jupjup’ units this time are two units with an exclusive area of 84㎡, and the sale price was confirmed at 1.33 billion KRW.

Compared to last May’s ‘Jupjup’ competition rate of 210,000 to 1 at Acro Seoul Forest in Seongdong-gu, Seoul, this is relatively low, but considering that the units were released at about twice the initial sale price of 680 million KRW, it shows high popularity. The sale price of 1.33 billion KRW is also not significantly different from the actual transaction price of 1.4 billion KRW for the same area on February 6.

Despite the weekday on-site lottery and news that future ‘Jupjup’ units might be offered at the initial sale price, the number of registrants exceeded 100 within an hour of application opening. An industry insider said, "Since the surrounding apartment prices have already surpassed 1.5 billion KRW and development issues are also emerging, it was judged that this is the lowest price at present."

The popularity of ‘Jupjup’ remained strong despite government regulations. Since the 28th of last month, the Ministry of Land, Infrastructure and Transport has restricted applications for non-priority supply units to only non-homeowners residing in the relevant area. If non-priority supply units are received in speculative overheated districts or regulated areas, re-winning is restricted for a certain period, similar to general subscriptions. The restriction period is 10 years for speculative overheated districts and 7 years for regulated areas.

‘Jupjup’ units will soon be available in Wirye New Town and Gwacheon reconstruction complexes as well. At Wirye Foret Jai in Hanam-si, Gyeonggi-do, which recently began move-ins, one unit with an exclusive area of 101㎡ has become available due to contract cancellation. The sale price remains the initial price of 710 million KRW. The actual transaction price for apartments of the same size in the surrounding area rose to as high as 1.85 billion KRW in March.

About ten units were found to have been fraudulently won in Gwacheon Weverfield and Gwacheon Jai, and some contracts have been canceled. An industry insider stated, "The exact number of sale units has not yet been determined," adding, "The timing is also undecided."

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