Initial Rent Cheaper Than Surroundings
Up to 10 Years Residence in New Apartment
No Resale Restrictions or Residency Obligations
This year, demand is focusing on 'Dobong Lotte Castle Golden Park,' the last private rental apartment in the Seoul area. The initial rent is cheaper than the surrounding market price, and tenants can live in the new apartment for up to 10 years. Moreover, there are no restrictions such as resale limitations or residency obligations, making it possible to sell the lease rights at a premium after the sale.
According to the sales industry on the 6th, Lotte Construction is launching the 'Dobong Lotte Castle Golden Park' in Banghak-dong, Dobong-gu, Seoul, with subscription schedules starting from the 6th to the 7th. This complex is a long-term general private rental housing consisting of two buildings from basement level 4 to ground level 23, with a total of 282 households. All units are composed of 84㎡ (exclusive area).
The apartment complex is a prime location right in front of Banghak Station on Subway Line 1, classified as a super-station area. The metropolitan area express railroad (GTX) Line C (scheduled for 2027) and the extension of the Ui-Banghak light rail are also planned. Within a 500m radius, there are convenience facilities such as Homeplus, the planned Mobius Square complex shopping mall, planned CGV, and Dobong District Office. Obong Elementary School, Changdo Elementary School, Dobong Middle School, Changdong Middle School, and Munhwa High School are also located within 600m.
The rental deposit is expected to be set between 857 million and 895 million KRW. The payment structure consists of a 10% down payment, 49% interim payment, and 41% balance, which is payable upon move-in. The move-in is scheduled for July 2025.
What draws the attention of demanders is that anyone aged 19 or older who is the head of a household can apply without a subscription savings account or application fee. Resale is allowed, so it can be resold immediately after winning. There is no penalty for not signing the contract after winning. Because of this, it is expected that applications will flood in from those hoping for market gains such as 'lottery sales' and 'initial premium (Chopi)' rather than for actual residence.
In fact, in September, Lotte Construction supplied 'Suji-gu Office Station Lotte Castle Hive L' in Yongin, Gyeonggi Province, where 162,683 people applied for 715 households, recording an average competition rate of 227 to 1. Immediately after winning, so-called 'Tteotdabang' transactions, where premiums were added and sold, were rampant, and lease rights premiums reached up to 180 million KRW at the time of contract. Also, in last month's subscription for 'Dongducheon Jungheung S-Class Hera City' in Dongducheon, Gyeonggi Province, 166,169 applicants competed for 466 households. The average subscription competition rate for this complex was 356.58 to 1, marking the highest competition rate in private rental sales history.
However, a variable is that the recent rise in Seoul apartment prices has slowed for six consecutive weeks, and the upward trend in metropolitan area housing prices continues to decelerate. This is due to high price awareness, government loan regulations, and interest rate hikes, which have intensified the contraction of buying sentiment.
Kim Hyoseon, Senior Real Estate Officer at NH Nonghyup Bank, said, "Recently, the housing market has been sluggish due to taxes and loan restrictions, and the watchful sentiment has spread due to policy variables after next year's election." He added, "Purchasing housing for purposes other than residence, such as chasing purchases or gap investments, should be approached cautiously."
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