Two Brand Apartment Complexes to Be Sold This Week in Seoul... "Barometer of the Cheongyak Market"

Seoul apartment complex. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Kim Hyemin] Two sites in Seoul, where housing supply news has been scarce, are opening for subscription this week. This is the first subscription opportunity in two months, and since these are large-scale, branded apartments appearing for the first time in the second half of this year, there is keen interest in their sales performance. The fate of these complexes could also serve as a gauge for the sales performance of other large-scale apartment complexes scheduled for supply in Seoul in the near future.

According to the Korea Real Estate Agency's Subscription Home on the 14th, special supply applications begin today for Riversen SK View Lotte Castle in Jungnang-gu, Seoul, and The Sharp Park Soleil Yu in Gangdong-gu. The schedule for first-priority subscriptions in the local area on the 15th, second-priority subscriptions for other areas, and the announcement of subscription results on the 23rd are all the same. However, there are differences in location, scale, and whether the price ceiling system applies.

Riversen SK View Lotte Castle in Jungnang-gu is a redevelopment complex of Jung-hwa 1 district. It is a large complex with 1,055 households across 8 buildings ranging from 13 to 35 floors. The general supply alone accounts for 501 households, with 165 units allocated for special supply. This is the first large-scale supply in Seoul in nine months since Buk Seoul Xi Polaris in Gangbuk-gu in February.

Although the price ceiling system does not apply to this complex, the prices are considered cheaper than the surrounding market prices. The highest price for a 59㎡ unit is set around 760 million KRW, and for an 84㎡ unit around 980 million KRW. Nearby new complexes such as Sagajeong Central I-Park's 84㎡ unit were traded at 1.2 billion KRW last month. Especially, with the recent increase in the mid-term loan ban threshold from 900 million KRW to 1.2 billion KRW, there is a high possibility that this will apply. The variable is that recent surrounding market prices are being adjusted downward. Although cheaper than market prices, the interest in the sales results is high due to the coinciding housing price decline. The resale restriction lasts until ownership transfer registration, the re-subscription restriction is 10 years, and there is no obligation for actual residence.

The Sharp Park Soleil Yu in Gangdong-gu is the first apartment in Seoul this second half of the year to be subject to the price ceiling system. Located near Dunchon Jugong, its prices are expected to be similar, allowing a preview of the sales performance of the upcoming Dunchon Jugong supply next month.

The variable is that although the price ceiling system applies, the prices are high. The highest price for a 59㎡ unit is about 890 million KRW, approaching 900 million KRW. The 84㎡ unit is priced over 1.2 billion KRW, reaching up to 1.3 billion KRW. This is likely influenced by its location in Gangdong-gu, one of the Gangnam 4 districts, and its double subway line access to lines 5 and 9, but the fact that prices are higher than surrounding market prices may cause hesitation in subscription. For example, the nearby Sinseong Dunchon Miso Jium's 84㎡ unit was traded at 1.22 billion KRW in May, making the supply price higher than the market price.

Since it is a post-sale system, the short period for mid-term and final payment is also a consideration. Mid-term payments must be made twice, in January and March next year, and the remaining 60% balance must be paid by the scheduled move-in date in June next year. For an 84㎡ unit, this means planning finances to mobilize over 1 billion KRW in a short period. However, the scale is not large, with only 73 of the total 195 households being supplied. The resale restriction is 5 years, re-subscription restriction 10 years, and there is no obligation for actual residence.

Ye Kyung-hee, senior researcher at Real Estate R114, said, "Since these are large complexes or have small supply volumes that have appeared in Seoul after a long time, it should not be very difficult to sell out during the main subscription." She added, "However, subscription competition rates may be lower than average." She continued, "The important factor is the contract completion rate, that is, the number of unsold units. Depending on the subscription results and contract completion rates of these complexes, the upcoming subscriptions for Jangwi 4 district, Hong Eun 13 district, and Dunchon Jugong may also be affected."

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