[Asia Economy Reporter Yuri Kim] It has been confirmed that the sale price of the reserved lots within the redevelopment association in Gajaeul New Town, Seodaemun-gu, Seoul, where housing prices are fluctuating due to expectations of a new light rail, has been set at twice the pre-sale price.
According to the maintenance industry on the 1st, the Gajaeul New Town 6 District Housing Redevelopment Maintenance Project Association recently announced a bid for the sale of four remaining reserved lots. This area was transformed into 'DMC Eco Xi' with 1,047 households after completing construction last December through redevelopment.
The reserved lots for sale include two units of 59㎡ (exclusive area), and one unit each of 72㎡ and 84㎡. The minimum bid prices were set at ▲59㎡ 900 million KRW ▲72㎡ 1 billion KRW ▲84㎡ 1.1 billion KRW. This is nearly double the general pre-sale price in 2017. At that time, the pre-sale prices for this complex were in the early 400 million to early 500 million KRW range for 59㎡ units, and in the early 500 million to early 600 million KRW range for 84㎡ units. A representative of the association said, "Since the bid announcement, inquiries about how to participate in the bidding have been coming to the association," adding, "Currently, 59㎡ units are trading around 950 million KRW, so we expect the sale to proceed smoothly."
Recently, as the Western Line light rail passed the private sector feasibility study, apartment prices in the Gajaeul New Town area have been rising sharply. Although it has been evaluated as having relatively poor transportation conditions despite its proximity to the city center, there is anticipation that these shortcomings will be improved with the establishment of the light rail. The Western Line light rail is a 16.15 km route connecting Saejeol Station (Line 6) in Eunpyeong-gu to Seoul National University Station (Line 2) in Gwanak-gu. It connects with five existing subway lines: Lines 1, 2, 6, 7, and 9. Construction is scheduled to begin in 2023 with a goal to open in 2028.
DMC Eco Xi, which began occupancy at the end of last year, has seen its 84㎡ asking price rise to the 1.2 billion KRW range due to the combined effects of the light rail benefit and new construction. DMC Central I-Park, near Myongji University Station, has also recently seen its 84㎡ asking price rise to around 1.1 to 1.2 billion KRW. Especially, Raemian DMC Lucentia, which began occupancy earlier this year, has seen its 84㎡ asking price soar to as high as 1.4 billion KRW. This too is more than double the pre-sale price. DMC Parkview Xi, close to Gajwa Station, has seen 84㎡ units traded up to 1.25 billion KRW this month, with asking prices rising to the 1.3 billion KRW range.
A maintenance industry official said, "As the maintenance is in the final stages and the surrounding environment and infrastructure have been organized, and expectations for improved transportation, which had been inconvenient, are growing, asking prices are rising mainly for new constructions," adding, "However, considering that several years remain until the Western Line opens, one should approach this carefully."
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