Gangbuk Mapo The Classy, More Expensive Than Dunchon Jugong, Also Had Higher Competition Rate

Subscription Results for Priority 1 in the Area: 14.9 to 1

'Mapo The Classy' complex appearance / Photo by Kyungjo Noh felizkj@

[Asia Economy Reporter Kim Hyemin] An apartment in the northern Seoul area has attracted attention by recording a higher subscription competition rate despite having a higher sale price than Dunchon Jugong in Gangdong-gu (Olympic Park Foreon). This result comes amid a reshuffling of subscription success centered on sale prices, with some pointing out a statistical illusion and others analyzing that the location in Mapo-gu, although in the northern area, is reflected in the outcome.

According to the Korea Real Estate Board's Subscription Home on the 20th, 'Mapo The Classy' in Mapo-gu recorded an average competition rate of 14.9 to 1, with 792 applicants for 53 households in the first-priority local subscription reception the previous day. This complex is a reconstruction of Ahyeon New Town District 2. It is a large complex with 17 buildings, ranging from 5 basement floors to a maximum of 25 floors above ground, totaling 1,419 households, of which only some units with exclusive areas of 59㎡ and 84㎡ were released as general supply.

The subscription competition rate differs somewhat from the recent trend in Seoul's sale market. Olympic Park Foreon recorded an average competition rate of 5.45 to 1 after going through second-priority subscriptions from other areas. Jangwi Xi Radiant, also supplied in the northern area, closed with a competition rate of 4.68 to 1 despite all unit types being eligible for mid-term payment loans.

In particular, many predicted a failure in subscription success for Mapo The Classy because it was priced higher than Olympic Park Foreon. The sale price of Mapo The Classy is 40.13 million KRW per 3.3㎡, the highest ever in the northern area. Applying this, the sale price for a 59㎡ unit was set at up to 1.05 billion KRW, and for an 84㎡ unit, 1.431 billion KRW. This is believed to be because it adopted a post-sale method (selling when more than 80% of the apartment construction is completed) to avoid the high sale price review system.

As a result of the subscription, the 59㎡ units, with 3 households available, attracted 449 applicants, recording an average competition rate of 149.6 to 1 and closing in the first-priority local subscription. The 84㎡ units, which do not allow mid-term payment loans, recorded relatively lower competition rates, ranging from a minimum of 5.5 to 1 to a maximum of 8.55 to 1 depending on the type. However, 84㎡ Type A, with 20 households available, received 171 applications and closed in the first-priority local subscription.

Such relatively high competition rates are also pointed out as a statistical illusion due to differences in the scale of supply. The larger the number of supplied households, the more subscription applications there are, but the competition rate tends to decrease; Olympic Park Foreon had more than 3,600 general supply units. In contrast, Mapo The Classy had only 53 general supply units, so the relative burden of closing was less. Although the total number of subscription applicants did not exceed 1,000, it recorded a double-digit competition rate.

Although it is in the northern area, the location in Mapo-gu, which is close to the city center rather than the outskirts of Seoul, is also believed to have influenced the result. Mapo-gu, along with Yongsan-gu and Seongdong-gu, is called Ma-Yong-Seong and is preferred next to the three Gangnam districts (Gangnam-gu, Seocho-gu, Songpa-gu). A sales official said, "Cash-rich people who want to live in Mapo probably applied to seize the opportunity," adding, "Because the supply is small, the subscription winning score or the rate of legitimate contracts may be higher than Olympic Park Foreon."

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