"More Applications Than Three Projects Combined"... Gimpo Pungmu Hoban Summit Subscription Success [Real Estate AtoZ]

Following the October 15 real estate measures, "Gimpo Pungmu Hoban Summit," the first project in the Seoul metropolitan area to announce its tenant recruitment since the new policy, achieved a successful sell-out by closing all unit types in the first-priority subscription round. This is the only project in Gimpo this year to surpass the total number of subscription accounts gathered by any other development. The popularity is attributed to the "non-regulated" premium and price competitiveness resulting from the price ceiling system.

Perspective view of Gimpo Pungmu Hoban Summit. Hoban Construction.

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According to Korea Real Estate Board's subscription platform on October 29, "Gimpo Pungmu Hoban Summit" received 4,159 applications for 572 units offered to the general public in the first-priority subscription held the previous day, resulting in an average competition ratio of 7.27 to 1. The 84㎡A unit recorded the highest popularity with a competition ratio of 14 to 1. The 84㎡B (4.74 to 1), 112㎡A (1.58 to 1), 112㎡B (1.08 to 1), and the penthouse (186㎡) also saw all units filled, with a competition ratio of 2.67 to 1. In the special supply round held the previous day, 399 units drew a total of 885 applications.

The enthusiasm is especially notable when compared to other projects launched in Gimpo this year. In March, "Pungmu Station Lotte Castle Signature" had a competition ratio of 0.76 to 1, "Opus Hangang Switzen" in June had 2.4 to 1, and "Harrington Place Pungmu" in July saw only 0.2 to 1. Even the combined first-priority applications for these three projects (a total of 2,576) do not match the 4,159 applications received for this development alone.

The main driver behind the success of Gimpo Pungmu Hoban Summit is the "non-regulated area premium." The October 15 real estate measures designated all of Seoul and 12 areas in Gyeonggi Province as land transaction permit zones, overheated speculation districts, and adjustment target areas, imposing triple regulations. In these areas, the loan-to-value (LTV) ratio for mortgage loans dropped from 70% to 40%, and the stricter regulations also apply to interim payment loans. The interim payment LTV, usually set at around 60% of the sale price, was reduced to 40%, decreasing loan availability by 20 percentage points.

In contrast, Gimpo was excluded from these regulations, and interim payment loans remain unchanged. There is a three-year resale restriction but no mandatory occupancy requirement, so renting is possible. Additionally, with the price ceiling system in place, the sale price was set at approximately 20.33 million won per 3.3㎡. The highest price for the 84㎡A unit is 708.6 million won, for the 112㎡A unit is 887.6 million won, and for the penthouse (186㎡) is 1.6544 billion won. While these prices are similar to neighboring developments, many consider them reasonable given that this is a new construction.

Gimpo Pungmu Hoban Summit consists of nine buildings ranging from two basement levels to 27 above-ground floors, offering a total of 956 units sized between 84㎡ and 186㎡. This is also Hoban Construction’s first project launch of the year. The announcement of successful applicants will be made on November 5, and contracts will be signed from the 18th to the 21st. The development is within walking distance of Pungmu Station on the Gimpo Gold Line, and adjacent to the complex are planned sites for a kindergarten, elementary school, and middle school. In addition to commercial infrastructure such as Emart Traders, Homeplus, and CGV, once the Pungmu Station area development is fully underway, the Hoban Summit brand town will expand to a scale of 2,580 units.

Meanwhile, the Pungmu Station area urban development project is a massive site with a total scale of about 6,600 units. More launches are expected in November, with Daewoo Engineering & Construction set to supply "Pungmu Station Prugio The Mark" (1,524 units) and BS Hanyang to offer "Pungmu Station Area Sujain Gracent Phase 1" (1,071 units) sequentially. Given the proven success of Gimpo Pungmu Hoban Summit, these upcoming projects are also expected to see strong demand.

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