Reconstruction Properties Also Have No Exception to 'Urgent Sale'... Increasing Disappointing Listings in Early Complexes

Uncertain Easing of Reconstruction Regulations Amid Real Estate Downturn
Decline in Listings Mainly in Early Complexes Due to Safety Inspections

On the 14th, in a real estate-dense shopping area in Songpa-gu, Seoul, where the decline in real estate prices and the transaction freeze phenomenon continue, apartment listings with market prices are posted. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Hyemin] The increase in 'urgent sale' properties due to the real estate market downturn is spreading to early-stage reconstruction complexes. Reconstruction complexes have generally faced relatively less downward pressure compared to regular apartments, as they were considered a positive factor for rising home prices. However, with the uncertain timing of safety inspection regulation easing coinciding with the real estate market turning downward, more owners seem to be lowering prices to quickly sell their properties.

According to local real estate agencies on the 20th, a property priced in the 1.9 billion KRW range recently appeared in the Olympic Athletes' Village in Bangi-dong, Songpa-gu, Seoul, with an exclusive area of 83㎡. The last transaction for this size was 2.3 billion KRW in April, so this new listing represents a drop of about 400 million KRW compared to the actual transaction price. While properties priced below actual transaction prices have occasionally appeared, this is the first time the 2 billion KRW barrier has been broken.

In Munjeong-dong Olympic Family Town, also known as one of the 'Olympic Big Three' complexes in Songpa-gu, an urgent sale property with an exclusive area of 84㎡ dropped to as low as 1.63 billion KRW. The actual transaction price in this complex fell from 1.92 billion KRW in March to 1.67 billion KRW last month, and now properties are appearing at even lower prices. For the 117㎡ unit, an urgent sale property initially priced at 2 billion KRW was reduced by 60 million KRW.

Other reconstruction complexes such as Sangye Jugong Complex 6 in Nowon-gu and Mokdong New Town Complex 11 in Yangcheon-gu are also seeing urgent sale properties priced below actual transaction prices, or urgent sale properties with prices lowered one or two more times.

All these complexes are currently undergoing safety inspections at the early reconstruction stage. However, progress is slow. For example, Sangye Jugong Complex 6 conditionally passed the first detailed safety inspection in April last year but postponed the second feasibility review once. The Olympic Athletes' Village also passed the first stage last March after a reattempt but has delayed applying for the second safety inspection.

Initially, it was expected that the second regulation would effectively be removed with the new government's inauguration, but the government hinted at slowing the process until the end of the year or the first half of next year, causing delays. A representative from a real estate agency in Songpa-gu said, "In the case of the Olympic Athletes' Village, the possibility of passing the final safety inspection is higher once regulations are eased," adding, "Recently, home prices in this area have been unstable, so owners who cannot wait any longer due to their circumstances seem to be lowering prices and putting their properties on the market."

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