After Chuseok, 'Lotto Subscription' Floods In... Where Are the 'Gangnam Big Fish'?

From immediately after the Chuseok holiday through October, notable complexes in Seoul's Gangnam area as well as the metropolitan area are entering the pre-sale race, intensifying the competition among prospective buyers. Approximately 80,000 households are scheduled to be supplied nationwide, accounting for about 36% of this year's total pre-sale volume. Reconstruction complexes in Seoul's Gangnam area, such as 'Cheongdam Le El' and 'Jamsil Raemian I-Park,' are also launching pre-sales one after another.

According to industry sources on the 16th, from after Chuseok until the end of November, a total of 29 large complexes with over 1,000 households each are expected to have general pre-sales nationwide. The supply volume for these alone is 34,306 households. Based on the subscription application dates, the total apartment pre-sale volume nationwide from the 19th through the end of the year is 85,011 households. This accounts for about 35.85% of this year's planned apartment supply volume.

Cheongdam Le El bird's-eye view.
[Photo by Lotte Construction]

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In Seoul and the metropolitan area, 16 complexes with 17,595 households will be available for general pre-sale. Among them, 'Cheongdam Le El,' known as the 'Gangnam Big Fish,' is drawing attention as it begins its subscription schedule starting with special supply on the 19th. Cheongdam Le El, a reconstruction of Samik Apartments, is constructed by Lotte Construction. It consists of 9 buildings ranging from 4 basement floors to a maximum of 35 floors above ground. The exclusive area ranges from 49 to 218㎡, with a total of 1,261 households including rental units. Of these, 149 households with exclusive areas of 59 to 84㎡ will be available for general pre-sale.

The average pre-sale price per 3.3㎡ is 72.09 million KRW, making it the most expensive among complexes subject to the pre-sale price ceiling system. The 59㎡ units are priced between 1.739 billion and 2.0198 billion KRW, and the 84㎡ units range from 2.2911 billion to 2.522 billion KRW. Nearby 'Cheongdam Xi,' which was completed in 2011, saw an 82㎡ unit traded for 3.29 billion KRW (8th floor) in June. The market expects a capital gain of around 1 billion KRW.

The resale restriction period is three years, but there is no obligation for actual residence, so tenants can immediately lease the units. However, as a post-sale apartment scheduled for occupancy in November next year, the down payment amounts to 20% of the pre-sale price. The payment period for the pre-sale amount is relatively short.

'Jamsil Raemian I-Park' in Songpa-gu, Seoul, a reconstruction of Jinju Apartments, is also attracting attention. It is scheduled for pre-sale in October. The complex, constructed by a consortium of Samsung C&T and HDC Hyundai Development Company, consists of 2,678 households, of which 589 will be available for general pre-sale. The pre-sale price is expected to be around 54.09 million KRW per 3.3㎡, with 84㎡ units priced between 1.7 billion and 1.8 billion KRW. Nearby 'Parkrio' recently saw an 84㎡ unit traded for 2.4 billion KRW.

In Seocho-gu, 'Raemian One Perla' (total 1,097 households), a reconstruction of Bangbae 6 District, will offer 465 households for general pre-sale. It is close to the traditional affluent neighborhood Bangbaebon-dong and adjacent to Banpo-dong, which is known for its concentration of private academies. It is within walking distance of Seoul Subway Line 4 and 7's Isu Station and Line 7's Naebang Station. Along with 'The H Bangbae' (Bangbae 5 District), which recently completed subscription, it is expected to emerge as a landmark complex in the area. 'Acro Ritz County' (total 707 households), a reconstruction of Bangbae Samik, will also offer 147 households for general pre-sale.

In Gangnam-gu, 'The H Daechi Edelweiss' (total 282 households), a reconstruction of Daechi-dong Gumaeul 3 District, is preparing for the general pre-sale of 72 households.

In the metropolitan area, complexes such as 'Hangang Sujain Obcent' (total 3,058 households), a redevelopment of Bukbyeon 4 District in Gimpo City; 'Prestige Xi' (total 1,445 households) in Gwacheon, Gyeonggi Province; 'Pyeongchon Xi Persnity' (total 2,737 households) in Anyang, Gyeonggi Province; 'City OCELE 6 Complex' (total 1,734 households) in Michuhol-gu, Incheon; and 'Wooreemrin Central City' (total 1,532 households) in Segyo, Osan are scheduled to enter the pre-sale market.

According to Real Estate R114, the average price per 3.3㎡ for large complexes with over 1,500 households nationwide in July was 24.96 million KRW, up 3.44% compared to the same month last year. During the same period, complexes with 300 to 499 households remained stable, while those with 500 to 699 households fell by 0.34%, and those with 700 to 999 households decreased by 0.10%.

In metropolitan cities outside Seoul, 7 complexes with 9,747 households will be launched. Additionally, in other provincial areas, 6 complexes with 6,964 households are also preparing for pre-sale.

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