Godeok Arteon, 59㎡ More Expensive Than 84㎡?..."Illusion Due to Abnormal Transactions"

View of Godeok Arteon Complex / Photo by Hyundai Construction

[Asia Economy Reporter Noh Kyung-jo] The 59㎡ unit at Godeok Arteon in Sangil-dong, Gangdong-gu, Seoul, was traded for 15 million KRW more than the 84㎡ unit, drawing attention. At first glance, it seems like a price inversion phenomenon between large and small units due to preference or scarcity of listings. However, local real estate agents dismissed it as a temporary phenomenon caused by abnormal transactions.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system on the 8th, the 59㎡ unit (14th floor, hereafter exclusive area) at Godeok Arteon was traded for 1.34 billion KRW on the 6th of last month. About ten days later, on the 17th, the 84㎡ unit (11th floor) changed hands for 1.325 billion KRW.

Compared to the previous transaction, the 84㎡ unit dropped by more than 400 million KRW from the September actual transaction price (1.745 billion KRW). On the other hand, the 59㎡ unit was traded for 1.02 billion KRW and 1.15 billion KRW in the same month, rising by up to 320 million KRW.

In the past, there were cases where the price of smaller units surpassed that of larger units due to changes in residential patterns, financial conditions, or investment value. However, local agents said this case was an abnormal transaction occurring during an economic downturn.

A representative from nearby A real estate agency said, "The 59㎡ unit traded at around 1.3 billion KRW last month was a contract that was canceled and re-contracted in May this year, so it is not a normal transaction," adding, "Of course, the 84㎡ unit is more expensive than the 59㎡ unit." They also mentioned that currently, 59㎡ units are listed in the 1 billion KRW range, and 84㎡ units in the 1.3 billion KRW range.

The problematic 59㎡ unit (14th floor), which had its contract canceled in May, was also traded for 1.34 billion KRW. Ultimately, real estate agents emphasized the likelihood of a self-dealing transaction. They noted that it is unusual to cancel a contract and resell at the same price after five months, especially as buyers have gained the upper hand in the second half of the year.

From the agents' perspective, it could be seen as a buyer backing out during the payment of the middle installment, but even considering forfeiture of the deposit and penalties, the numbers do not add up.

A representative from B real estate agency said, "The price illusion occurred partly because the actual transaction price of the 84㎡ unit dropped significantly," adding, "However, the 59㎡ unit is expected to fall to the 900 million KRW range."

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