SH Corporation Reveals Sale Cost for Songpa Ogeum and Guro Hangdong Districts
Sale Prices Up to 1.8 Million KRW More per ㎡ Compared to Sale Costs
Hangdong District Complexes 2 and 3 Generate Sale Profits of Approximately 85 Billion KRW
[Asia Economy Reporter Kim Hyemin] The sale cost of Songpa-gu Ogeum District 1 and 2 complexes, built by Seoul Housing and Communities Corporation (SH Corporation), was revealed to be a total of approximately 157.3 billion KRW. The final sale price was set about 1.8 million KRW per ㎥ higher, resulting in a total sales profit approaching 85 billion KRW.
According to the sale cost of Ogeum District 1 and 2 apartments disclosed by SH Corporation on the 17th, the costs were calculated at 3,260,199 KRW per ㎥ and 3,254,870 KRW per ㎥, respectively. The land development cost for both complexes was set at 3,410,416 KRW per ㎥, and the construction costs were 1,689,864 KRW and 1,643,274 KRW per ㎥, respectively.
The actual sale prices for these complexes were 4,861,772 KRW per ㎥ for Complex 1 and 5,092,664 KRW per ㎥ for Complex 2. In the case of Complex 2, the sale price was set 1,837,794 KRW higher than the sale cost. Through this, SH Corporation earned sales profits of 31.21 billion KRW and 52.982 billion KRW, respectively.
SH Corporation explained, "The sales profits were used as funds for the construction costs of rental housing in each complex and for the maintenance costs of rental housing incurred in 2017."
On the same day, SH Corporation also disclosed the sale costs of Hang-dong District 2 and 3 complexes in Guro-gu.
For Hang-dong District Complex 2, the land development cost was 2,395,026 KRW per ㎥, and the construction cost was 2,052,254 KRW per ㎥, resulting in a sale cost of 3,168,301 KRW per ㎥ and a total of 120.7955 billion KRW. In contrast, the sale price was supplied at 3,792,521 KRW per ㎥, totaling 144.594 billion KRW. The sales profit was 23.799 billion KRW.
Hang-dong District Complex 3 had a total sale cost of 209.533 billion KRW and a final sale price of 272.01 billion KRW, yielding a profit of 62.477 billion KRW. SH Corporation explained that these profits were used as funds for the construction costs of rental housing in Hang-dong District Complexes 2 and 3 and for the maintenance costs of rental housing incurred in 2018.
In December last year, SH Corporation disclosed the sale cost of Goduk-Gangil Public Housing District Complex 4 and announced plans to disclose the sale costs of major project districts over the past 10 years. This disclosure is a follow-up measure related to that announcement and was made in conjunction with the New Year business report conducted when Seoul Mayor Oh Se-hoon visited SH Corporation.
SH Corporation plans to disclose the sale costs for Naegok District, Segok 2 District, Magok District, and others in the future. President Kim Heondong said, "We plan to sequentially disclose the costs of the remaining 24 past sale complexes within the first half of this year," adding, "We hope the housing market will quickly normalize through transparent disclosure of sale costs."
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