Attention to Skepticism on SH Land Lease (30 Pyeong Type, Around 300 Million KRW) Sale

Mayor Oh Se-hoon Pushes Appointment of Kim Heon-dong as SH President to Create Era of 300 Million KRW Sale Price for 30-Pyeong Land Lease in Gangnam... Concerns Raised Over Practical Feasibility

Seoul Mayor Oh Se-hoon (Photo by Yonhap News)

[Asia Economy Reporter Park Jong-il] Can Kim Heon-dong sell SH 30-pyeong land lease apartments for 300 million won?

"Mayor Oh Se-hoon (photo) seems to be pushing to appoint former Kyungsilyeon head Kim Heon-dong as SH president, but whether President Kim will properly realize the construction of land lease apartments remains to be seen."

This is what real estate expert A, who previously held a senior position in Seoul City, recently told a reporter.

A said, "I understand that Mayor Oh, after Kim Heon-dong, the former head who was once rejected by the SH president recommendation committee, insisted on appointing him as president by going through a re-application process and requested a hearing at the City Council, with the hearing scheduled for November 5. This seems to be a plan to have former head Kim sell 30-pyeong land lease apartments in the Gangnam area for around 300 million won, creating an 'Oh Se-hoon real estate brand.'"

However, he added, "Whether the supply of land lease apartments will be possible is something to watch further."

According to A, there are plans to supply land lease apartments on the former Seoul Medical Center site in Samseong-dong, Gangnam-gu, or the former Seongdong Detention Center site in Songpa-gu, but he raised doubts about the feasibility.

The price of 30-pyeong apartments around these two areas is currently about 1.5 to 2 billion won, so if apartments are sold for around 300 million won there, would the neighboring residents remain silent?

Of course, the land is owned by Seoul City and only the buildings are sold, so the sale price is about 300 million won, but nearby apartment residents would surely not stand by seeing their apartment prices likely fall.

Theoretically, with construction costs of 6 million won per pyeong and a 33-pyeong apartment, the cost is about 190 million won, and including other profits, supplying 300 million won apartments seems possible.

However, realizing this in practice is another matter, he argued.

If such a thing happens, neighboring apartment residents are expected to rise up like a swarm and hold protests in front of Seoul City Hall condemning Mayor Oh Se-hoon.

In particular, if land lease apartments are sold, the huge premiums attached to winners will also become a social controversy, he pointed out.

A said, "Since the land is owned by Seoul City, they might prevent trading for several years after sale and move-in, but under a market economy, it will be difficult to completely block trading of sale rights or move-in rights."

He predicted that even if former head Kim Heon-dong is inaugurated as SH president amid such controversy, it will not be easy to push this through.

In that case, attacks on Mayor Oh Se-hoon seem inevitable.

The Seoul City Council is also expected to focus on these points during the hearing for SH president candidate Kim Heon-dong on November 5.

Seoul City Council member B said, "Mayor Oh is taking reckless steps to definitely appoint former head Kim as SH president, but the candidate will undergo verification in various fields during the hearing."

Also, attention is on how employees will accept Kim, given that he has long been engaged in lawsuits against SH regarding sales profits.

An official from the corporation said, "If Mayor Oh appoints former head Kim as SH president, how will he manage the organization?" but also conveyed the atmosphere, "There are concerns about whether integration with the staff will work well because Kim has been suing SH for years."

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