Magok Complex 9 · Gwacheon Jade Xi, 'Half-Price Sale' Sparks Subscription Frenzy
10-Year Resale Ban Due to Price Ceiling Application
Ranking Determined by Total Payment, Not Points
Income and Asset Criteria Require Careful Review
[Asia Economy Reporter Lee Chun-hee] The Magok 9 Complex in Gangseo-gu, Seoul, and the 'Jade Xi' in the Gwacheon Knowledge Information Town, Gyeonggi Province?both considered 'lottery sales'?are set to launch sales next month. These two public sale complexes are expected to see high subscription rates as their sale prices are only about half of the surrounding market prices. However, experts advise caution as the subscription qualifications and methods differ from private sales.
According to industry sources on the 26th, the Jade Xi in Gwacheon Knowledge Information Town S9 Block, supplied by Korea Land and Housing Corporation (LH) and GS Construction, will start its subscription schedule on the 2nd of next month. Seoul Housing and Communities Corporation (SH Corporation) will also announce the resident recruitment notice for Magok Urban Development Project District 9 on the same day, followed by subscription acceptance starting from the 16th of next month.
◆ 'Lotto' at half the market price... Expecting a flood of applicants = Both complexes are regarded as 'lottery' sales in the industry. As apartments built on public land, the sale price ceiling system applies, setting prices at about half the level of nearby market prices.
The Jade Xi, with a total of 647 households, has a sale price of 21.95 million KRW per 3.3㎡. For the standard floor, 49㎡ (exclusive area, 231 households) ranges from 450.8 million to 455.5 million KRW, and 59㎡ (416 households) ranges from 523.2 million to 542.3 million KRW. Considering that a 60㎡ unit in nearby Wonmun-dong's 'Raemian Sure' was traded for 1.227 billion KRW on the 2nd, and that Gwacheon's housing prices are in the high 40 million KRW per 3.3㎡ range, this is about half the market price.
For SH Corporation's Magok 9 Complex, with a total of 1,529 households and 962 units for sale, the highest sale prices are 525.15 million KRW for 59㎡ (433 households) and 697.5 million KRW for 84㎡ (529 households). This is also about half the market price, considering that nearby Magok M Valley 8 Complex's 59㎡ units traded at 950 million KRW and 84㎡ units at 1.083 billion KRW.
However, the low sale prices come with many transaction restrictions that must be considered. Both locations are subject to the sale price ceiling system on public land within speculative overheating zones, prohibiting resale for 10 years from the announcement date of the winners. Considering the expected move-in dates, the actual resale prohibition period is expected to last until February 2028 for Magok 9 Complex and December of the same year for Jade Xi.
Additionally, Jade Xi imposes a residence obligation. Winners must move in within 90 days from the move-in availability date and reside there for 5 years.
Jade Xi will accept special supply applications on the 2nd, first priority on the 3rd, and second priority on the 4th of next month. Winners will be announced on the 10th, and contracts will be signed from April 6 to 10. Magok 9 Complex will hold first priority subscriptions on the 16th and 17th, and second priority on the 18th of next month. Winners will be announced on the 25th, and contracts will be signed from June 2 to 4. Both locations will operate only cyber model houses due to the spread of COVID-19.
▲ Perspective view of Magok Urban Development Project District 9, Gangseo-gu, Seoul (Provided by SH Corporation)
◆ Winners determined by total deposit amount, not point system = Currently, private sales in Seoul and Gwacheon supply all small and medium-sized units through a point system that ranks applicants based on the period of being homeless, number of dependents, and subscription savings account duration. However, these two complexes determine the order of general supply winners based on the total deposit amount rather than points.
For general supply, the first priority applicants are household heads who have been subscribed to the resident savings account for more than 2 years and have paid monthly deposits at least 24 times on the agreed payment dates. In this case, all household members must not have won a subscription within the past 5 years.
Winners are ranked in order of the highest deposit amount among those who have been homeless for more than 3 years. However, only 100,000 KRW per month is recognized for the total amount. For example, even if 9 million KRW was deposited over 30 payments of 300,000 KRW each, only 3 million KRW (100,000 KRW x 30) is recognized.
Unlike private sales, income and asset criteria also apply. Magok 9 Complex applies income criteria for special supply, and Jade Xi applies income criteria for all supplies except for national merit special supply. For the first-time homebuyer special supply, the income must be 100% or less of the previous year's average monthly income of urban workers per household. For households of three or fewer, this is 5,554,983 KRW per month.
Jade Xi also adds asset criteria. The total real estate assets owned by the household must be 215.5 million KRW or less based on official prices, and the value of automobiles must not exceed 27.64 million KRW.
Although general supply quantities are usually larger than special supply quantities, a notable point is that the special supply proportion is much higher in these two complexes. Jade Xi allocates 515 units (79.6%) out of 647 households to special supply, and Magok 9 Complex allocates 710 units (73.8%) out of 962 households to special supply. An industry expert advised, "Since special supply and general supply subscriptions can overlap, carefully checking whether you qualify for special supply is also a way to increase your chances of winning."
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