[Asia Economy Reporter Yuri Kim] The Magok Urban Development Project District 9, supplied by Seoul Housing and Communities Corporation (SH Corporation), officially launched its sales schedule on the 26th with the announcement of the resident recruitment. The sale price is effectively a 'half-price sale' compared to the surrounding market prices, with the highest price for the exclusive area of 84㎡ not exceeding 700 million KRW, indicating fierce competition is expected.
According to SH Corporation, Magok Urban Development District 9 is a social mix complex consisting of a total of 1,529 households, including 962 sale housing units composed of 59㎡ and 84㎡, and 567 national rental and long-term lease units. There are 433 units of 59㎡ and 529 units of 84㎡ for sale. The sale price for 59㎡ averages 508,854,000 KRW, ranging from a minimum of 476,959,000 KRW to a maximum of 525,156,000 KRW. For 84㎡, the average price is 675,323,000 KRW, with a minimum of 632,739,000 KRW and a maximum of 697,506,000 KRW.
In the adjacent Magok M-Valley 8 district, 59㎡ units were recently reported sold at 940 million KRW, and 84㎡ units at 1.075 billion KRW, with current asking prices ranging from 900 million to 1 billion KRW for 59㎡ and 1.1 billion to 1.2 billion KRW for 84㎡. The Magok District 9 units being sold this time are subject to the price ceiling system, making them significantly cheaper than the surrounding market prices, which is expected to intensify subscription competition. Special sales for newlyweds and others will be held from March 9 to 10, and general sales from March 16 to 18, with applications accepted only online.
Magok District is an urban development area where, besides apartment complexes, Magok MICE (Meetings, Incentives, Conferences, and Exhibitions), Seoul Botanical Garden, and industrial complexes are developed together. The first phase of sales was completed in 2013, and the second phase in 2015. The current sales of District 9 represent the third phase.
Magok District 9 features a wide green space running through the complex, allowing residents to feel connected to a park despite being in the heart of the city. Airport Elementary School is adjacent to the northeast of the complex, and Songjeong Elementary School is to the west. Magok Station on Subway Line 5 is located within a 5-minute walk to the east of the complex, and many bus routes pass through Gonghang-daero to the south, providing excellent public transportation access. The complex also has a considerable number of commercial facilities, and residents can use the commercial facilities of already completed complexes, which is an advantage in terms of residential infrastructure. On the east side of the complex is Ewha Seoul Hospital, and corporate-linked facilities such as Lotte Central Research Institute and LG Science Park are also nearby. Public institutions such as the tax office, district office, and schools are planned within the district.
Magok Urban Development District 9 has received approval for its housing construction project plan under the Housing Act and is subject only to the Housing Supply Regulations. It is not subject to the Public Housing Special Act, so applicants must fully understand the differences in subscription qualifications before applying. For special sales to newlyweds, the point system applied since May 2018 does not apply, and prospective newlyweds and single-parent families are not eligible. During document screening, the income limit is somewhat raised to 120% of the average monthly urban worker income (130% for dual-income households) compared to public housing districts, and household members' assets are excluded from qualification criteria, among other differences. Detailed information can be found in the resident recruitment announcement. Only residents of Seoul (with at least one year of residence as of the announcement date) can apply, and winners from the metropolitan area are selected only for the special supply for multi-child families.
Magok District 9, targeting subscribers of the Housing Subscription Savings (Chungyak Savings), is a housing supply in a speculative overheating district. Applicants must be 'non-homeowner household members' who have resided in Seoul for at least one year as of the resident recruitment announcement date. Priority 1 applicants must be household heads who are non-homeowner household members, have not won any other housing in the past five years, and have been subscribed to the Housing Subscription Savings for over two years with at least 24 monthly payments. Priority 2 applicants are those who have subscribed to the Housing Subscription Savings. In case of competition within Priority 1, applicants with more than three years as non-homeowner household members and higher total savings (recognized payment amount) are given priority in selection.
For special sales reserves, 500% of the special sales units are selected as reserve residents by lottery. If special sales applications are undersubscribed, the remaining units are supplied by lottery to special sales applicants who were not selected as residents. If contract cancellations or disqualifications occur among special sales winners, the corresponding units are supplied sequentially to the reserve residents.
Applications for special sales are accepted only online through the Seoul Housing and Communities Corporation website to prevent COVID-19. Applications for general sales can be submitted through the Korea Real Estate Board subscription application site.
The sale housing in Magok District 9 is a multi-unit housing constructed in a speculative overheating district, and resale is prohibited for 10 years from the date of selection as a resident. However, if ownership transfer registration is completed, it is considered that three years have passed from the registration date. There is no obligation to move in or reside, and as these are price ceiling system-applied houses, winners are managed in the system as winners regardless of contract signing. The winner and their household members cannot be selected as residents of other sale housing for five years from the winning date.
To prevent COVID-19, the sales, which were postponed once in mid-February, will not operate an on-site model house but will replace it with a cyber model house. The model house video will also be released on YouTube. The resident recruitment announcement can be checked on the Seoul Housing and Communities Corporation website.
The announcement of winners and allocation of building and unit numbers will be posted on March 25, 2020, on the Korea Real Estate Board subscription homepage and the corporation's website. Move-in is scheduled for February 2021.
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