[Naejip Road] Apartment in the Heart of Gajaeul New Town, Auctioned at a Starting Price of 800 Million Won

Second Auction on November 8, Minimum Price 800 Million KRW After First Failed Bid
15-20 Minute Walk from DMC Station... Convenient Bus Access
No Tenant, Zero Risk of Eviction Lawsuit
Continuous Transportation Benefits Including Gangbuk Transversal Line and Seobu Line

Property Information: 59㎡ (exclusive area) residential auction property at 105-dong, 5th floor, DMC I-Park, 458 Bukgajwa-dong, Seodaemun-gu, Seoul (Seobu 5th Branch 2022-51542, 1st auction failed, minimum price 800 million KRW)

The third property introduced on ‘My Home Road’ is an auction property. The 59㎡ apartment in DMC I-Park located in Gajaeul New Town, Bukgajwa-dong, Seodaemun-gu, Seoul, is noted for its relatively low price entry barrier. The initial appraised value was 1 billion KRW, but after one failed auction, the minimum bid price dropped to 800 million KRW.

The second auction is scheduled for November 8. Although the minimum bid price has decreased compared to the first failed auction, which is expected to increase bidders’ interest, opinions remain divided that the price is still high, leaving the possibility of another failed auction. If the property fails to sell again, the minimum bid price for the third auction will drop to 640 million KRW. ‘My Home Road’ thoroughly analyzed the points to be cautious about in this apartment’s auction through a proxy site visit.

DMC I-Park Building 105 Exterior View (Photo by Ryu Taemin)

Mortgage Rights Cancelled, No Tenants or Outstanding Payments

First, the most important aspect in court auctions is the rights analysis. This apartment is a forced auction property with the Korea Credit Guarantee Fund as the creditor. There are a total of four registrations on the title, including mortgages and provisional seizures. All these mortgages will be cancelled once the auction is completed. This means the winning bidder does not have to pay the creditor separately after acquiring the property.

There are no tenants either. After winning the bid, there is no concern about having to ask tenants to vacate the property. It also appears that the debtor does not reside there. As of July, there were no outstanding management fees (including electricity, water, heating, etc.) confirmed. Therefore, the winning bidder does not have to pay any additional amounts upon acquisition.

Considering these circumstances comprehensively, aside from transaction taxes (such as acquisition tax), there appear to be no additional costs beyond the winning bid amount for this apartment.

A view of Bulgwangcheon near Digital Media City Station. The World Cup Stadium can also be seen in the background. (Photo by Ryu Taemin)

Triple Subway Station Access at DMC Station... Good School District and Ample Rest Areas

A site visit was conducted on the 28th. The apartment is in building 105 and is about a 15-20 minute walk from Exit 1 of Digital Media City Station, where Subway Line 6, the Gyeongui-Jungang Line, and the Airport Railroad pass. Although it is somewhat distant, it is still within a reasonable walking distance. Moreover, by using the bus stop at Exit 4, one can board a bus and reach right in front of the apartment complex within 7-10 minutes. Nearby flows the Bulgwangcheon Stream, which leads to Sky Park and the World Cup Stadium.

The Gajaeul New Town area where the complex is located has many residential facilities and lacks towering apartment buildings, giving a stable atmosphere. Especially opposite DMC I-Park is the Jungang Neighborhood Park, which is convenient for children to play and adults to enjoy walks and rest. Additionally, there are sufficient rest areas scattered around, such as Nabiul Children’s Park and Seodaemun-gu Galmaeyeon Park.

A view of Jungang Neighborhood Park located directly opposite the DMC I'Park complex. (Photo by Ryu Taemin)

The local commercial district is also well established. Like other new towns, the first floor of the complex is lined with shops, providing convenient living facilities. Inside the complex, there is a children’s playground and a senior citizens’ center. Notably, a bus stop serving six routes is located just a 2-minute walk from the complex, allowing direct access to Hongdae Entrance and Sinchon Stations on Subway Line 2.

The area is also equipped with a good school district. The apartment is assigned to Seoul Bukgajwa Elementary School, about 600 meters away by address, and nearby are Gajaeul Middle School and Gajaeul High School.

The complex was completed in 2009 and is now in its 12th year. It consists of 362 households across five buildings, with a maximum height of 15 floors. The auction property is located on the 5th floor, featuring three rooms, two bathrooms, and an east-facing living room. The total number of parking spaces is 436 (1.2 spaces per household), providing ample parking with spacious and comfortable internal parking areas.

DMC I'Park complex view (Photo by Ryu Taemin)

Continuous Transportation Benefits from Gangbuk Transversal Line and Seobu Line... High Demand from Newlyweds and Young Couples for Actual Residence

This complex also benefits from transportation developments. In February 2019, it was decided that the Gangbuk Transversal Line and Seobu Line would open. The Gangbuk Transversal Line, connecting Mokdong to Cheongnyangni Station, passes through Digital Media City, Gajaeul New Town, Myongji University, Seodaemun-gu Office, Hongje, and Sangmyung University, cutting through Gajaeul New Town. This will allow transfers to Lines 5 and 3 via the Gangbuk Transversal Line. Additionally, the Seobu Line, running from Saejeol to Yeouido to Seoul National University Station, is planned to intersect with the Gangbuk Transversal Line at Myongji University Station.

The minimum bid price, which is lower than the market price, is also an advantage. A similar-sized unit on the 13th floor within the complex was sold for 1.05 billion KRW on October 11 last year. A similar mid-level unit on the 7th floor changed hands for 987 million KRW in August last year. Compared simply, winning the auction at the minimum price would allow purchasing a home for over 100 million KRW less than market transactions.

However, with the real estate transaction freeze beginning, sales have slowed. According to the Ministry of Land, Infrastructure and Transport’s actual transaction data, the last transaction was on October 11. A representative from nearby A real estate agency said, “This area is popular among newlyweds and young couples,” adding, “Since most demand is for actual residence, transactions are not very active.”

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