Average Sale Price per Pyeong in Magok District 12.35 Million KRW... Six Locations with Negative Profit Margins

SH Corporation Headquarters, Gangnam-gu, Seoul, Morning of the 6th

On the morning of the 6th, at the headquarters of Seoul Housing and Communities Corporation (SH Corporation) in Gaepo-dong, Gangnam-gu, Seoul, President Kim Heon-dong is explaining the sales cost of 13 complexes in the Magok district. Photo by Hwang Seoyul

The sale cost per pyeong (3.3㎡) of 13 complexes in the Magok district of Gangseo-gu, Seoul, supplied by Seoul Housing and Communities Corporation (SH Corporation), was revealed to be 12.35 million KRW. The profit margin reached up to 22.4%.

On the 6th, SH Corporation disclosed the sale costs of 13 complexes (Complexes 1, 2, 3, 4, 5, 6, 7, 8, 10-1, 11, 12, 14, and 15) in the Magok district. These 13 complexes were constructed as mixed-use complexes (social mix) and were sold in two phases: the first in 2013 and the second in 2015. Unlike other projects where sale costs were previously disclosed, this was promoted as an urban development project.

According to SH Corporation, the average sale cost per 3.3㎡ for the 13 complexes in Magok district was 12.348 million KRW, with an average sale profit margin of 4.7%. For the first phase (9 complexes), the sale cost per 3.3㎡ was 12.25 million KRW, with a profit margin of -2.3%. For the second phase (4 complexes), the sale cost per 3.3㎡ was 12.56 million KRW, with a profit margin of 17.21%. Based on a net area of 59㎡, the first phase was sold at 306 million KRW, and the second phase at 319 million KRW. Kim Heon-dong, president of SH Corporation, explained, "Due to many unsold units during the first phase, it was difficult for the corporation to make a profit."

The complex with the highest sale cost per 3.3㎡ was Complex 3 (13.17 million KRW), followed by Complex 8 (13.05 million KRW), Complex 4 (12.89 million KRW), Complex 1 (12.82 million KRW), Complex 10-1 (12.79 million KRW), Complex 12 (12.76 million KRW), Complex 6 (12.60 million KRW), Complex 2 (12.29 million KRW), Complex 5 (12.07 million KRW), Complex 15 (12.32 million KRW), Complex 11 (11.64 million KRW), Complex 14 (11.22 million KRW), and Complex 7 (10.91 million KRW).

The complex with the highest sale profit margin (sale profit/sale price) was Complex 11 (22.4%). The sale profit is the difference between the sale price and the sale cost, and the sale price for this complex was 15 million KRW per 3.3㎡. This was followed by Complex 8 (17.1%), Complex 12 (16.3%), Complex 7 (14.1%), Complex 10-1 (13.1%), Complex 14 (5.1%), and Complex 5 (0.1%).

Six complexes showed negative sale profit margins: Complex 6 (-2.4%), Complex 2 (-2.5%), Complex 1 (-8.7%), Complex 3 (-13.3%), Complex 4 (-10.6%), and Complex 15 (-4.3%).

The total sale profit earned by SH Corporation in the Magok district amounted to 67.189 billion KRW.

With this announcement of the Magok district sale costs, SH Corporation has completed the disclosure of sale costs for five districts (Magok, Segok 2, Naegok, Ogeum, and Hang-dong) where project settlements were finalized over the past 10 years. Kim Heon-dong, president of SH Corporation, stated, "In the future, for completed settlement districts, we will disclose information divided into 71 categories to ensure citizens' right to know and secure public interest."