Nowon-gu 'Taereung Hyundai' Reserved Site... 25 Million Won Discount and 10th Sale Attempt Underway

'TaeNeung Hyundai' Consortium Announces 10th Sale of Reserved Lots on 8th
Lowered Minimum Bid After 11 Units Failed in 9th Announcement
Short-Term Large Capital Burden, Impact of High Price Perception
Minimum Bid Sometimes Not Set to Increase Bidding Demand

[Asia Economy Reporter Hwang Seoyul] A reserved lot in a newly built apartment complex in Nowon-gu, Seoul, which has struggled to find a buyer, is attempting its 10th sale. The price has been reduced by up to 25 million KRW compared to last month’s 9th sale attempt. Reserved lots are units that reconstruction or redevelopment associations hold back without general sale, anticipating changes in the number of association members.

According to the maintenance industry on the 13th, in the 10th reserved lot sale announcement made by the Taereung Hyundai Apartment Reconstruction Association on the 8th, the minimum bid prices for 11 units of the association-owned 'Taereung Harrington Place' apartments were lowered by 15 to 25 million KRW compared to the previous round. After all 11 units listed in the 9th sale announcement on the 26th of last month failed to sell, the association voluntarily reduced the prices.

An association official said, "There have been many inquiries, but people said it was burdensome because loans are not freely available," adding, "The association must dissolve once the reserved lots are sold, but since they are not selling, we lowered the prices to offer them again."

This year alone, the Taereung Hyundai Apartment Reconstruction Association has attempted to sell reserved lots 10 times. Although the first sale announcement for 13 units was made in March, only 2 units have been sold so far. During this period, the minimum bid prices for units with exclusive areas of 59.98㎡, initially 930 million KRW, were lowered to 884 million KRW; for 74.95㎡, initially 1.1 billion KRW, to 1.045 billion KRW; and for 84.98㎡, initially 1.3 billion KRW, to 1.235 billion KRW.

The continued failure to sell the reserved lots at Taereung Hyundai Apartments is analyzed to be due to the burden on buyers to prepare large sums of money in a short period, combined with the minimum bid prices not being significantly different from the asking prices.

In fact, looking at the listings for 59.98㎡ units at Taereung Hyundai Apartments on Naver Real Estate, asking prices range between 884 million and 900 million KRW. Similarly, some urgent sale listings for 74.95㎡ units have asking prices between 1.045 billion and 1.06 billion KRW.

Aerial view of 'Taereung Harrington Apartment' in Gongneung-dong, Nowon-gu, Seoul

Experts predict that the sale of reserved lots at Taereung Hyundai Apartments will remain difficult for the time being. Kim Hyoseon, Senior Real Estate Advisor at NH Nonghyup, said, "The current minimum bid prices are about 30 to 40 million KRW cheaper compared to recent market prices," adding, "Due to buyers’ perception that housing prices are at their peak, even if the purchase price is cheaper than market prices, they think prices could fall further, so they approach cautiously."

Song Seunghyun, CEO of City and Economy, also said, "In the current housing price downturn, reserved lot sales are unlikely to be a market that attracts buyers’ attention."

Meanwhile, as the real estate market has recently stagnated, several newly built apartment complexes have started discount sales of reserved lots. The Eungam 2nd District Redevelopment Association in Eunpyeong-gu, Seoul, lowered the minimum bid price for the ‘Nokbeon Station e-Pyeonhansesang Castle’ (59.96㎡) by 100 million KRW to 930 million KRW last month but has yet to find a bidder.

The Mokdong 3rd District Redevelopment Association, which announced a sale in May, also lowered the minimum bid price for a 59.99㎡ unit by 20 million KRW to 460 million KRW compared to the previous announcement.

In some cases, to attract more bidders, no minimum bid price was set at all. The Jangan 111-4 Redevelopment Association allowed participation in the bidding for reserved lots at ‘The Sharp Gwanggyosan First Park’ in Jangan-gu, Suwon-si, Gyeonggi-do, as long as the bid deposit was prepared, without specifying a minimum bid price. This complex completed the sale of all reserved lots after the final announcement last month.

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