Helio City Reserved Land Price Discounted for Resale

A panoramic view of the Helio City complex in Garak-dong, Songpa-gu, Seoul.

[Asia Economy Reporter Donghyun Choi] The reserved land within the Helio City apartment complex in Garak-dong, Songpa-gu, Seoul, will be resold at a discounted price.

According to industry sources on the 19th, the Helio City association recently announced the sale of the remaining reserved land for two apartment units and four commercial stores. The highest bidder above the minimum bid price will be selected as the successful bidder, and the bidding closes at 5 p.m. on the 21st.

The apartment units available are the 84㎡ L-type (16th floor) and 84㎡ A-type (4th floor). The minimum bid price is 1.72 billion KRW for the 84㎡ L-type and 1.7 billion KRW for the 84㎡ A-type. These prices are 30 to 35 million KRW lower than the prices at the end of last month’s bidding.

For the commercial stores, the discount compared to the apartments is larger. The neighborhood living facility 1-2 (14.58㎡) on the basement first floor had a minimum bid price of 275 million KRW last month, but this time it is listed at 250 million KRW, a 9% discount. The neighborhood living facility 1-1 (37.44㎡) on the first floor was discounted from 2.6 billion KRW to 2.4 billion KRW, a 7.7% reduction. The other two stores will be resold at the previous prices.

This price adjustment appears to be due to the failed bids last month caused by the December 16 real estate measures and the impact of the novel coronavirus disease (COVID-19). A representative from real estate agency A in the area said, "Recently, inquiries about Helio City purchases have dropped to one-tenth of the usual level." In fact, there has been only one recorded sale transaction of Helio City registered in the Ministry of Land, Infrastructure and Transport’s actual transaction price system this year until the day before. On the 8th, a 39㎡ unit was sold for 885 million KRW, which is about 100 million KRW lower than the asking price at the end of last year.