Gangdong-gu Office Delays Finalization of Dunchon Jugong Sale Price... "Supplement Needed"

On the 9th, Gangdong-gu Office held a Sale Price Deliberation Committee meeting
but could not finalize the sale price... "Cooperative side needs to provide supplements"

[Asia Economy Reporter Hwang Seoyul] The price review committee responsible for determining the sale price of the Dunchon Jugong reconstruction apartments was held but failed to reach a conclusion. The sale price is expected to be finalized after further discussions.

Kangdong District Office held the price review committee meeting at 2 p.m. on the 9th but confirmed that the sale price was not finalized and would undergo additional discussions. A district office official explained, "There is no case where the sale price is finalized as originally proposed," adding, "We have informed the association of the areas that need improvement, and the sale price will be finalized once these are addressed."

According to the maintenance industry and others, the sale price proposed by the association before the review was known to be around an average of 39 million KRW per 3.3㎡, and attention is focused on whether the finalized sale price will be at a similar level. The market predicts that the finalized sale price will be lower, around an average of 37 to 38 million KRW per 3.3㎡. If the sale price is finalized at a similar level, the most supplied unit, with an exclusive area of 59㎡, is expected to be priced around 900 million to 1 billion KRW, and the 84㎡ unit around 1.2 billion to 1.3 billion KRW.

Recently, the government eased the mid-term loan regulation threshold to 1.2 billion KRW, and whether this will apply to the Dunchon Jugong complex is a key issue, as it affects the success of general sales. On the 27th of last month, the government, in the follow-up plan of the 11th Emergency Economic and Livelihood Meeting, relaxed the mid-term loan guarantee regulation threshold by the Housing and Urban Guarantee Corporation (HUG) and the Housing Finance Corporation (HF) from 900 million KRW to 1.2 billion KRW. Since this only requires revising the 'HUG internal regulations' and 'HF guidelines,' it is predicted that implementation could occur as early as this month.

The recommencement ceremony of Dunchon Jugong Apartment held on the 17th of last month

However, the association stated that even if the 84㎡ units in Dunchon Jugong do not benefit from the eased mid-term loan regulations, they will neither delay the sales schedule nor lower the sale price. The association had already advanced the general sales, originally scheduled for January to February next year, due to concerns over funding difficulties caused by the freezing of the real estate project financing (PF) market. Additionally, since additional construction costs have already increased significantly, the association is in a situation where it must reduce members' contributions, making it difficult to lower the sale price. Park Seunghwan, head of the Dunchon Jugong association, said, "We have decided to advance the sales schedule as much as possible and that it is difficult to arbitrarily adjust the sale price," adding, "We will make efforts to negotiate with the government regarding the issue of easing the mid-term loan regulation threshold."

The impact of the reformed private housing subscription system, introduced to increase the chances for young people to win, seems unlikely to be felt. This is because it is unlikely that the reformed subscription system will be implemented by the scheduled general sales in December at Dunchon Jugong. The government has introduced a lottery system for small and medium-sized units (85㎡ or less) with high demand from young single or two-person households in speculative overheated districts. Accordingly, the subscription for small and medium-sized units, which was previously operated 100% by a point system, is expected to change to 40% points and 60% lottery for units 60㎡ or less, and 70% points and 30% lottery for units between 60 and 85㎡. A Ministry of Land, Infrastructure and Transport official said, "The supply rule revision is expected to be completed within December, but since the computer network and subscription home system need to be changed and test runs conducted, the implementation date is unknown."

The association plans to announce the general sales recruitment on the 25th and proceed with general sales in December. The association general meeting for management disposition approval will be held on the 17th of next month.

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