[Asia Economy Reporter Kim Yuri] Seoul Housing and Communities Corporation (SH Corporation) announced on the 2nd that it will begin the sale of a total of 937 households in Goduk Gangil Public Housing District Complexes 8 and 14.
SH Corporation announced the sale notice for 937 households in Goduk Gangil Complexes 8 and 14 on the same day and stated that special sale subscription applications will start from the 15th. Including rental households, Complexes 8 and 14 have 946 and 943 households respectively, making them large-scale mid-to-large sized complexes. Except for Complex 3, which was converted into a Newlywed Hope Town, this is the last general sale supply in the Goduk Gangil district.
The houses supplied this time have exclusive areas of 49㎡ and 59㎡, with 526 households in Complex 8 and 411 households in Complex 14. The average sale price applies the price ceiling system under the Housing Act, with Complex 8 priced at 385,185,000 KRW for 49㎡ and 466,014,000 KRW for 59㎡. Complex 14 is priced at 406,695,000 KRW for 49㎡ and 494,589,000 KRW for 59㎡. This is similar to the level of Complex 4 in Goduk Gangil, which was sold last year. SH Corporation stated, "It is expected that competition will be fierce as the prices are about 73% of the same housing type in nearby Gangil River Park."
The Goduk Gangil district is a large-scale public housing district developed by dividing Goduk-dong, Gangil-dong, and Sangil-dong. The Goduk-dong area is centered around an industrial cluster with knowledge industry centers, while Gangil-dong and Sangil-dong areas are mainly residential. Complex 8, which is being sold this time, is located in Gangil-dong, and Complex 14 is in Sangil-dong. Goduk Gangil district has a favorable location with access to the Seoul Ring Expressway via Sangil IC and good metropolitan transportation through entry to Olympic-daero. With the extension of Line 5, the planned Gangil Station is expected to improve public transportation usage.
Goduk Gangil Complex 8 features a nature-friendly environment with Mangwolcheon Stream bordering the south side of the complex. Complex 14 is located along Cheonho-daero, connecting Seoul and Hanam, offering excellent public and metropolitan transportation conditions.
The sale houses in Goduk Gangil Complexes 8 and 14 are built in a large-scale land development district, so according to regulations, 50% of the supply is given priority to residents who have continuously lived in Seoul for more than 2 years. The remaining 50% is supplied to residents in the metropolitan area (those who have lived in Seoul for less than 2 years, Gyeonggi-do, and Incheon). If Seoul residents who have lived continuously for more than 2 years fail to win in the priority supply, they will compete again with metropolitan area residents for the remaining 50% supply.
Sales are targeted at subscribers of the Housing Subscription Savings (Chungyak Savings). Since Goduk Gangil Complexes 8 and 14 are supplied in speculative overheated districts, applicants must be members of a non-homeowner household residing in the metropolitan area as of the date of the resident recruitment announcement. Priority 1 applicants must be household heads who are members of a non-homeowner household, have not won another house in the past 5 years, have been subscribed to Housing Subscription Savings for over 2 years, and have paid monthly installments at least 24 times. Priority 2 applicants only need to be subscribed to Housing Subscription Savings. If there is competition within Priority 1, applicants with more than 3 years as a non-homeowner household member and higher total savings (recognized payment amount) will be selected first.
Special supply quotas are allocated to eligible applicants such as multi-child families, elderly parents support, newlyweds, first-time homebuyers, and other special supply categories. Eligibility criteria follow the regulations set by the Housing Supply Rules and the Public Housing Special Act. Detailed information can be found in the resident recruitment announcement.
According to the recently revised Housing Supply Rules, 500% of the special supply households will be selected as special supply preliminary residents by lottery. If contract cancellations or disqualifications occur among special supply winners, the corresponding units will be sequentially supplied to the special supply preliminary residents.
With the recent enforcement of the revised Public Housing Special Act, if the residency obligation period is not fulfilled, the public housing project operator is required to repurchase the house, preventing speculative applicants aiming for price gains in advance. The residency requirement in the relevant area has been strengthened from 1 year to 2 years, tightening the residency screening criteria for applications.
To prevent the spread of COVID-19, applications will only be accepted online through the Korea Real Estate Board subscription application site.
Goduk Gangil district sale houses are constructed in speculative overheated districts, and resale is prohibited for 10 years from the date the resident is selected. However, if ownership transfer registration is completed, it is considered that 3 years have passed from the registration completion date. The residency obligation period under the Public Housing Special Act is 5 years. If the residency obligation is violated or the resident moves out, SH Corporation will repurchase the house. Also, as these houses are subject to the price ceiling system, winners are managed in the system as winners regardless of contract signing, and neither the winner nor members of their household can be selected as residents of other sale houses for 10 years from the winning date.
The model house opening will be replaced by a cyber model house and promotional videos, and actual houses can be checked through a pre-opening event before moving in, limited to contract holders.
The announcement of special and general sale winners and unit assignments will be posted on the Korea Real Estate Board’s subscription homepage and SH Corporation’s website on the 26th. The contract period is from September 14 to September 16. Move-in is scheduled for February 2021.
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