Up to 1 Billion KRW Profit at 3-Year-Old Sale Prices... 14,000 People Flock to 6 Houses in Gwacheon (Comprehensive)

More than 14,000 people flocked to apply for 6 non-priority subscription units (jumjum) within the Knowledge Information Town (Jijeongta) in Gwacheon, Gyeonggi-do, known as the 'Jun-Gangnam' area. This is because the units were supplied at prices from three years ago, allowing for potential profits of up to 1 billion KRW compared to the market prices of surrounding complexes.

Gwacheon Prugio Ortus Bird's-eye View / Image Courtesy of Daewoo E&C

According to the Korea Real Estate Board's subscription website on the 16th, a total of 14,175 applicants competed for 6 non-priority subscription units across 4 complexes in Gwacheon Jijeongta the previous day, recording an average competition rate of 2,362.5 to 1.

By complex, Gwacheon Lesento Desiang recorded the highest competition rate with 4,746 applicants for 1 unit (exclusive area 84㎡). Daewoo E&C's Gwacheon Prugio Bellarte had 3,926 applicants concentrated on the remaining 1 unit (exclusive 99㎡). Gwacheon Prugio Ortus saw 1,961 applicants for 2 units of 74㎡ and 2,859 applicants for 1 unit of 84㎡, showing competition rates of 980.50 to 1 and 2,859 to 1, respectively. The only unit offered under the special supply for newlyweds, Gwacheon Prugio Lavieno (1 unit, exclusive 84㎡), closed with a competition rate of 683 to 1.

Despite restrictions allowing only non-homeowners living in Gwacheon with a 5-year residence obligation period to participate, demand surged because the sale prices were set at levels from three years ago. Since the announcement dates for winners differed by complex, overlapping applications were also possible.

The sale price was around 800 million KRW for an 84㎡ unit. Considering that nearby complexes of the same size, such as Raemian Sur and Gwacheon Centreville Asterium, were traded at around 1.3 billion KRW in March, and Gwacheon Weverfield changed hands for 1.77 billion KRW last month, a price difference of over 500 million KRW up to 1 billion KRW in market value can be expected.

Meanwhile, all these complexes were supplied in the second half of 2020. At that time, they attracted attention as half-price 'lottery' apartments, recording triple-digit high subscription competition rates. However, there were also many fraudulent applicants through false address registrations. Eventually, in legal battles, fraudulent applicants lost, and contracts were canceled, with these canceled units gradually being released as non-priority subscriptions.

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