Recently Reconstructed Dangsan Central I-Park
Sale of Reserved Land at Twice the Pre-sale Price
59㎡ Lowest Bid Price 1.45 Billion KRW
Highest Price Level in Non-Gangnam Areas of Seoul
Aerial view of 'Dangsan Central I-Park' in Dangsan-dong 5-ga, Yeongdeungpo-gu, Seoul (Provided by HDC Hyundai Development Company)
[Asia Economy Reporter Lee Chun-hee] The area around Dangsan Station, where Seoul Subway Lines 2 and 9 intersect, is bustling with the arrival of new apartments for the first time in 16 years. With the announcement of the sale of reserved land at about twice the price of two years ago, there is even speculation that housing prices in Yeongdeungpo-gu might surpass those in Mayongseong (Mapo, Yongsan, Seongdong districts).
According to industry sources on the 15th, the Sang-A and Hyundai Apartment Housing Reconstruction Maintenance Association in Dangsan-dong, Yeongdeungpo-gu, announced the sale of reserved land owned by the association yesterday. The apartment, reconstructed as 'Dangsan Central I-Park,' consists of a total of 802 households. The sale targets a total of 5 units: two units of 71㎡ (exclusive area) and three units of 59㎡. Bidding will be held on the 22nd.
This reserved land sale is expected to serve as a benchmark for the apartment's market price. This complex, which began move-in at the end of May, does not allow resale of pre-sale rights and ownership transfer registration has not yet been completed, so there have been no transactions. Some association members' move-in rights can be traded if certain criteria such as holding period are met, but no transfers have occurred yet. Therefore, the winning bid price for the reserved land is likely to reflect the actual market price.
The minimum bid price set by the association is 1.6 billion KRW for 71㎡ units and 1.45 billion KRW for 59㎡ units, set identically regardless of type. Compared to the prices at the time of general sale in 2018?59㎡ units priced between 730 million and 755 million KRW, 71㎡ units between 810 million and 835 million KRW, and 84㎡ units between 885 million and 897 million KRW?these prices are about twice as high.
A representative from real estate agency A in Dangsan-dong said, "Based on current asking prices, the market price for this complex is around 1.4 billion KRW for 59㎡ units and between 1.7 billion and 1.8 billion KRW for 84㎡ units."
The price increase is analyzed to be significantly influenced by the fact that this is the first move-in in the area in a long time. Currently, aside from 'Acro Tower Square' in Yeongdeungpo-dong, which moved in 2017, Dangsan Central I-Park is the only large new complex with over 500 households in the western part of Yeongdeungpo-gu. A real estate agent in Yeongdeungpo-dong B said, "Considering only the area near Dangsan Station, this is the first large-scale new complex move-in in 16 years since 'Dangsan Prugio' in Yeongdeungpo-dong in 2004."
It has been highlighted that despite the excellent location allowing subway commutes to Yeouido, Gangnam, and downtown without transfers, there have been no new apartments until now.
In fact, the minimum bid price for the 59㎡ reserved land is among the highest in non-Gangnam areas of Seoul. This year, only two other apartments of the same size in non-Gangnam areas have been traded at higher prices: 'Gangbyeon Dongyang' in Seongdong-gu (1.499 billion KRW in January) and 'Acro River Heim' in Dongjak-gu (1.484 billion KRW in June). 'Gyeonghuigung Xi' in Jongno-gu was traded in the early 1.4 billion KRW range last month, and 'Raemian Mapo Riverwell' in Mapo-gu was traded at 1.415 billion KRW last month as well.
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