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Magok Lotte Castle Le West 49㎡ Sale Price Around 900 Million KRW
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[Asia Economy Reporter Kim Hyemin] The investment fever for lifestyle lodging facilities is showing signs of overheating. Despite bold sale prices, applicants are flocking, and a bizarre phenomenon of properties being sold at premiums is continuing. Critics point out that the market has deteriorated into a short-term trading market where buyers immediately resell at a premium after winning the lottery, avoiding housing market regulations.

According to industry sources on the 2nd, 'Lotte Castle Le West' in Magok-dong, Seoul, whose winners were announced on the 29th of last month, saw an overheated resale market during the three-day official contract period that ended the day before. As the first pre-sale complex in the Magok MICE complex in Gangseo-gu, rumors of its good location caused a rush of people looking for properties as soon as the winners were announced.

When the sale price of Lotte Castle Le West was first revealed, investors even predicted a 'Mafi (minus premium).' The sale price for a studio-type unit with a net area of 49㎡ was set at up to 960 million KRW, sparking controversy over the high price.

However, the reality turned out to be the exact opposite. During the three-day contract period, premiums kept rising, with high-floor units of 84㎡ gaining up to 100 million KRW in premium. The sale price for that unit size is up to 1.5 billion KRW. A real estate agency in Gangseo-gu, A Office, said, "Because the location is good, many people intended to hold onto their units until the end, while those who lost the lottery sought to buy resale units, and winners also made additional purchases, causing premiums to rise significantly. Now, there are no resale units left from lottery winners who lack sufficient funds."

The government clarified earlier this year that lifestyle lodging facilities cannot be rented out and must be registered as lodging businesses, making investment conditions stricter. However, since these units are not counted as housing, and are exempt from comprehensive real estate tax and capital gains tax surcharges, demand surged as they avoid housing market regulations. Furthermore, since resale is possible even before the contract after winning, so-called 'short-term traders' trying to profit from premiums are reportedly rampant.

An industry insider said, "The market is so overheated that if the location is even slightly good, premiums reach their maximum. Developers are also aware of this and set the sale prices accordingly to the maximum," he said.

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