Prime Gangnam Land Site Candidate, General Supply 'Lotto Sale'

Sites Included in the August 4 Housing Supply Plan

3,000 Households on Seoul Medical Center Site
Prime Land Adjacent to MICE Site

Attention Also on Public Procurement Service Site

Almost No General Sale Units
Minimal Impact on Surrounding Market Expected

[Asia Economy Reporters Inho Yoo, Chunhee Lee] "The supply volume is not large, but the location is exceptionally excellent. If these are offered for general sale, they will be like a 'lottery'." (A construction company official)

Demanders are already showing interest in the residential sites in the Gangnam area included in the government's August 4 housing supply plan.

According to the industry on the 6th, the total number of housing units in the Gangnam 3 districts (Seocho, Gangnam, Songpa) announced in this plan is 7,600 units. The industry evaluates the following sites as having the best locations: ▲Seoul Medical Center site (3,000 units) ▲Seoul Regional Public Procurement Service site (1,000 units) ▲National Diplomatic Academy idle site (600 units) ▲Korea Land and Housing Corporation (LH) Seoul Regional Headquarters (200 units).

The Seoul Medical Center site is the most notable in terms of scale and location. It is a prime piece of land adjacent to the large-scale development project area of Samsung-dong COEX and Jamsil Sports Complex MICE (Meetings, Incentives, Conferences, and Exhibitions) business district. Originally, the plan was to use only the parking lot site to build about 800 units, but it has been expanded to create a large complex of 3,000 units, which is also an advantage.

Location map and bird's-eye view of Seoul Medical Center site (Provided by Ministry of Land, Infrastructure and Transport)

The Seoul Regional Public Procurement Service site also has an excellent location. The National Library of Korea is right next door. Seorae Village is nearby, and the Han River Park is not far. It is conveniently accessible by transportation, with a 12-minute walk to the Seoul Subway Line 7 Express Bus Terminal Station and a 14-minute walk to Line 2 Seocho Station. Considering that the nearby Hanshin Seorae Apartments are over 30 years old and due for reconstruction, the industry expects development synergy effects.

There will be 600 units on the idle land of the National Diplomatic Academy in Seocho 2-dong, Seocho-gu. It is an 'L'-shaped plot with reversed left and right sides located behind the Diplomatic Academy building. It is a station area within a 5-minute walk to Yangjae Station on Subway Line 3 and has excellent transportation conditions with direct access to the Seocho IC on the Gyeongbu Expressway.

The LH Seoul Regional Headquarters site in Nonhyeon-dong, Gangnam-gu, is only 200 units in scale but is an 8-minute walk from Gangnam-gu Office Station on Line 7.

Professor Choi Hwang-soo of Konkuk University’s Department of Real Estate said, “The new housing sites in the Gangnam 3 districts announced in the August 4 plan are prime locations,” adding, “Such sites would require a private supply score of over 70 points to even consider, so the term 'lottery sale' will be used.”

However, it is expected that there will be almost no units for general sale. The government’s policy is to supply mainly public rental housing or equity accumulation-type sale housing rather than general sales. Earlier, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki stated at the announcement of the plan that there is "no intention to offer general sales for the new Gangnam sites. They will be primarily supplied through long-term rental methods to youth, newlyweds, and others."

Experts also predict that considering the project period, the impact of these units on the surrounding market will be minimal. Professor Kwon Dae-jung of Myongji University’s Department of Real Estate said, "It will take more than three years to start construction and move in on currently vacant land, and construction can only begin after the relevant institutions vacate," adding, "It cannot immediately affect the market."