'First Sale After Remodeling' Ogum Anam General Sale Price 52 Million KRW per Pyeong
Matches Record High Price of Raemian One Bailey
General Sale of 29 Units Avoids Price Ceiling Regulation
[Asia Economy Reporter Kim Hyemin] The general sale price of Ogeum Anam in Songpa-gu, Seoul, which is the first remodeled apartment to be put on sale, has been revealed to exceed 50 million KRW per pyeong. Since the number of units for sale does not exceed 30, it is not subject to the price ceiling regulation, matching the highest sale price ever recorded for apartments under this regulation. Amid this unusually high sale price, it is expected that the success of this complex will influence the pricing of future remodeled apartments.
According to the maintenance industry on the 24th, the Ogeum Anam Apartment Remodeling Housing Association set the sale price for the general sale units at about 52 million KRW per 3.3㎡ through a general meeting of members in mid-month. Based on a supply area of 94㎡, the price reaches approximately 1.48 billion KRW. Considering that the average sale price of apartments in Ogeum-dong, Songpa-gu, is currently 42.67 million KRW per 3.3㎡ according to Real Estate Bank, the sale price is set significantly higher than the market price.
Ogeum Anam was able to set a high sale price because the number of units for general sale was limited to 29. This is due to avoiding the so-called ‘30-unit rule.’ Under current regulations, if 30 or more units are sold, the price ceiling regulation or the high sale price review by the Housing and Urban Guarantee Corporation (HUG) must be applied. In such cases, the sale price cannot exceed a certain level and is restricted. Additionally, procedures such as land appraisal verification or approval from the local government’s sale price review committee are required, making the process complicated.
By limiting the number of units to 29, Ogeum Anam avoided these regulations. This is why it was able to set a sale price comparable to Seocho-gu’s Raemian One Bailey (52.73 million KRW per 3.3㎡), which is the most expensive apartment with HUG’s sale guarantee.
Ogeum Anam plans to proceed with the subscription for the general sale units as early as next month. However, it is known that both the sale price and the timing of the sale may be revised depending on circumstances. Located in Songpa-gu, this complex has attracted attention from prospective buyers as it is adjacent to Seongnaecheon Stream in front and Ogeum Park behind. Since it is the first remodeled apartment to be sold after the 2012 amendment of the Housing Act allowing an increase in the number of units in remodeling projects, the subscription results are expected to significantly influence the pricing of other remodeled apartments.
Meanwhile, among the complexes currently undergoing remodeling, many have increased only 29 units to avoid regulations. Seongji Apartment in Songpa-dong, Songpa-gu, which was the first in the country to receive permission for vertical extension remodeling, will also have 29 units for general sale. Banpo Prugio in Banpo-dong, Seocho-gu, Sindap Geukdong in Dongdaemun-gu, and Sangnok Tower in Gwangjang-dong, Gwangjin-gu have also designed their general sale units to be 29.
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