"No One Lives Here" Eoljuksin Chaos... Mafie Listings Surge in Seoul [Report]

Hanwha Forena Mia Sees 60 Million KRW Negative Premiums
Location, High Pre-Sale Prices, and Mixed-Use Factors at Play
Some View It as a Temporary Effect from the Move-In Period

"Whenever it seems like people might forget, clients come looking to sell their pre-sale rights, but there are no actual buyers." (Mia-dong A Real Estate Office)

On the 21st, we visited the Samyang Intersection Special Planning Zone 3 development site in Mia-dong, Gangbuk-gu, Seoul. Hanwha Construction Division’s Hanwha Forena Mia, which is scheduled for move-in this November, revealed its presence beyond the construction site fence. The complex in Mia-dong, Gangbuk-gu, consists of four buildings ranging from five basement floors to 28 above-ground floors, totaling 497 residential units in a mixed-use apartment complex. It is an ultra-station area, located about 100 meters, or a one-minute walk, from Samyang Intersection Station on the Ui-Sinseol Line.

With the new apartment move-in approaching, one would expect inquiries about pre-sale rights transactions or jeonse (long-term lease). However, nearby real estate offices were empty. Upon entering A Real Estate Office near Mia-dong, the manager, who had been dozing off on the sofa, got up. Despite it being the afternoon, there were no customers. When asked about the pre-sale rights listings for Hanwha Forena Mia, he explained, "Most are at no premium (same price as the pre-sale price) or at a discount (negative premium)." B Real Estate Office nearby gave a similar response, welcoming the rare visitor.

Impact of Mixed-Use Complex and High Pre-Sale Prices... Listings with 60 Million KRW Negative Premium Appear

The pre-sale rights for an 80㎡ unit on the 9th floor of Hanwha Forena Mia have a negative premium of up to 60 million KRW. Listings for 84㎡ units are trading 20 to 40 million KRW below the pre-sale price. The 53㎡ pre-sale rights are also priced around a 20 million KRW negative premium.

On the 21st, Hanwha Forena Mia is being constructed in the Special Planning Zone 3 at Samyang Intersection, Mia-dong, Gangbuk-gu, Seoul. Photo by Lee Ji-eun

Nearby real estate offices explained that the combination of pre-sale prices set higher than the surrounding market, the low preference for mixed-use complexes, and ambiguous location factors have all contributed to this situation. The pre-sale price for an 84㎡ unit in Hanwha Forena Mia is up to 1,150.03 million KRW, which sparked controversy over the high price. Nearby complexes, Bukseoul Xi Polaris and Raemian Tribera 2nd Phase, recently sold units of the same size for 1,020 million KRW and 920 million KRW, respectively.

A representative from B Real Estate Office near Mia-dong, Gangbuk-gu, said, "Although it is a station area, the Ui-Sinseol Line light rail has low usability for commuting," adding, "Moreover, since it is a mixed-use complex with a low exclusive use ratio, it naturally has lower preference."

Negative Premium Transactions Increasing at Hoban Summit Gaebong... New Apartments on Seoul Outskirts Hit

Recently, listings with negative premiums have been appearing one after another, especially for new apartments on the outskirts of Seoul, like Hanwha Forena Mia. A 59㎡ pre-sale right at Hoban Summit Gaebong in Gaebong-dong, Guro-gu, Seoul, was listed at 750 million KRW. Compared to the highest pre-sale price (771.3 million KRW), this reflects a 21.3 million KRW negative premium. An 84㎡ pre-sale right (20th floor) changed hands on the 16th of last month for 950 million KRW. The highest pre-sale price for that size is 998.6 million KRW.

Additionally, a pre-sale right of the same size was listed at about 35.83 million KRW cheaper than the price combining the pre-sale price (974 million KRW) and options such as a system air conditioner (41.83 million KRW), totaling 1,015.83 million KRW. Hoban Summit Gaebong has been actively occupied since December after its completion last year.

Most of these apartments struggled to find residents due to high pre-sale prices at the time of subscription. Prospective residents were unable to pay the intermediate or final payments, leading to listings with negative premiums. However, some view this as a sign that the ‘Eoljushin (newly built no matter what)’ craze and concerns over housing supply shortages, which had shaken the Seoul apartment market, are now shifting starting from the outskirts of Seoul.

Park Jimin, head of the Monthly Subscription Research Institute, analyzed, "During the period just before large apartment complexes move in, there is an increase in people urgently trying to sell their pre-sale rights because they cannot afford the final payments or investment funds." He added, "The high pre-sale prices formed during the real estate boom and the less favorable location also seem to have influenced this." However, Park explained, "Once the move-in is complete, there will be no listings for the next two years, so there is a possibility that asking prices will rise."

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