Opening of 'Songdo Xi Punggyeongchae Grenoble' in the 24 million KRW range comparable to the Sale Price Ceiling System

by Jung Jin

Published 05 Mar.2024 15:40(KST)

[Songdo Zai Pungnyeongchae Grenoble Bird's-eye View]

As apartment prices in the Seoul metropolitan area soar to unprecedented levels, complexes priced lower than the surrounding market are showing strong demand. In particular, landmark complexes that can represent their regions attract high interest because they are traded at prices higher than the surrounding market after occupancy, allowing for significant capital gains.

For example, the recently launched ‘Maple Xi’ in Seocho-gu, Seoul (total 3,307 households) attracted buyers aiming for a safety margin after occupancy as a landmark priced lower than the surrounding market. Specifically, 35,828 applicants competed for 81 units (excluding special supply), recording the second-highest subscription competition rate in Seoul’s history at 442.32 to 1.

Similarly, ‘Dongtan Lake Park Nature & e-Pyeonhansesang’ in Hwaseong, Gyeonggi Province, supplied last October (total 1,227 households), saw 136,695 subscription applications with an average competition rate of 246.74 to 1, driven by expectations of capital gains worth hundreds of millions of won.

The common features of these complexes are their scale of over 1,000 households, major brands representing the region, and affordable prices compared to the surrounding market. Additionally, they offer excellent residential environments within the region and future value, raising expectations for real estate value appreciation after occupancy, which attracted buyers seeking a safety margin.

A real estate expert said, “Demand does not simply flock because the sale price is lower than the surrounding market, but because the complex can represent the region and lead the market price after occupancy, resulting in many subscription applications.” He added, “Therefore, buyers eager to secure a home should carefully consider the complex’s scale, brand, location, and future value when applying to expect significant value appreciation after moving in.”

Meanwhile, ‘Songdo Xi Punggyeongchae Grenoble,’ presented by GS Construction and Jeil Construction Co., Ltd., is attracting attention. This complex in Songdo, Incheon, is a landmark with an affordable price compared to complexes under the price ceiling system.

The sale price of Songdo Xi Punggyeongchae Grenoble is in the 24 million KRW per square meter range, amounting to just over 800 million KRW for an 84㎡ unit including expansion costs. Compared to other complexes supplied in Songdo, ‘Songdo The Sharp Park Avenue’ (occupied in 2018) traded an 84㎡ unit for 1.15 billion KRW in January, and ‘Songdo The Sharp First Park’ (occupied in 2017) changed hands for 998 million KRW for an 84㎡ unit last month. Furthermore, a subsequent complex to be supplied in Songdo District 11 is expected to be priced around 1.1 billion KRW for an 84㎡ unit, suggesting that buyers of Songdo Xi Punggyeongchae Grenoble can expect a premium of at least 300 million KRW by the time of occupancy.

Highly anticipated Songdo Xi Punggyeongchae Grenoble is a project integrating five complexes, making it the largest development in Songdo District 11. It consists of 23 buildings (21 apartment buildings and 2 officetels) ranging from two basement floors to a maximum of 47 floors above ground, totaling 3,270 households: 2,728 apartments sized 84 to 208㎡ and 542 officetel units sized 39㎡.

Complexes 1 and 2 are apartments from one basement floor to 29 floors above ground, consisting of 469 households (Complex 1, RC11) and 548 households (Complex 2, RC10), respectively. Complexes 3 to 5 are mixed-use residential complexes with apartments and officetels from two basement floors to a maximum of 47 floors above ground: Complex 3 (RM4) has 597 apartments and 271 officetel units, Complex 4 (RM5) has 504 apartments, and Complex 5 (RM6) has 610 apartments and 271 officetel units.

The apartment subscription schedule begins with special supply on March 11 (Monday), followed by first priority applications (for designated and other areas) on March 12 (Tuesday), and second priority applications on March 13 (Wednesday). Winners will be announced on March 20 (Wednesday) for Complexes 1 and 2, and on March 21 (Thursday) for Complexes 3, 4, and 5. The official contract period for winners runs for seven days from April 1 (Monday) to April 7 (Sunday). Since the announcement dates differ between Complexes 1 & 2 and Complexes 3, 4 & 5, overlapping applications are allowed, giving applicants two chances to apply. However, if an applicant wins in the complex with the earlier announcement date, their application for the complex with the later announcement date will be automatically canceled.

The payment terms require a 10% down payment split into two installments, with the first installment being 5%, reducing the initial financial burden. Additionally, all unit types receive free balcony expansion benefits.

General subscription eligibility requires a subscription savings account held for at least 12 months, meeting deposit requirements by region and area, and applicants must be at least 19 years old residents of the Seoul metropolitan area (Seoul, Gyeonggi, Incheon). First priority applications are possible regardless of the number of owned homes or household head status. There is no restriction on re-winning.

The officetel subscription schedule for Complexes 3 and 5 is as follows: application on March 14 (Thursday), winner announcement on March 19 (Tuesday), and winner contracts from March 20 (Wednesday) to March 21 (Thursday) for two days. Each person can apply for up to two units, one per complex. There is no resale restriction, allowing immediate trading of the sale rights upon contract. Financial benefits such as 60% interest-free installment payments are also provided.

‘Songdo Xi Punggyeongchae Grenoble’ is located in the waterfront area, the core green infrastructure of Songdo District 11, offering a pleasant residential environment. Some units have permanent waterfront views.

The educational environment is excellent. Kindergarten and elementary and middle school sites are planned right next to the complex. Additionally, Yonsei University International Campus, Incheon Global Campus (including State University of New York, George Mason University, Ghent University, University of Utah) are nearby, and Inha University Open Innovation Campus (Inha University Songdo Campus) borders the site.

Living infrastructure is abundant. The 800-bed Songdo Severance Hospital (construction started December 2022, scheduled to open December 2026) will be within walking distance. Large shopping facilities such as Homeplus, Hyundai Premium Outlet (Songdo branch), and Triple Street are conveniently accessible.

Transportation is also convenient. Access to Aam-daero is easy via Incheon New Port Boulevard and Songdo Bio Boulevard, connecting to the 2nd Gyeongin Expressway, 3rd Gyeongin Expressway, and Yeongdong Expressway. Songdo Science Road allows easy movement throughout Songdo.

The apartments, composed only of medium to large units of 84㎡ or larger, feature a 4-bay or more slab-type layout (except some types) maximizing natural light and ventilation, with some types designed with three-sided balconies. Notably, some units in Complexes 1 and 2, located right in front of the Songdo District 11 waterfront, include terrace houses designed considering the surrounding landscape and location characteristics, and penthouses are planned on the top floors of some buildings.

The officetels feature one bedroom and one living room separated for space efficiency, with a circular layout designed for convenience. Additionally, built-in wardrobes, dressing rooms, and other storage spaces are provided to enhance living convenience.

Community facilities matching the scale of the complex are also a strength. Amenities include a fitness club, sauna, indoor golf practice range, guest house, study room, book caf?, and a sky community.

The model house for ‘Songdo Xi Punggyeongchae Grenoble’ is located in Songdo-dong, Yeonsu-gu, Incheon.