[Naejip Road] Seoul Jungnang-gu 1000-unit Complex 'Riversen SK VIEW Lotte Castle'... "Good but Too Expensive"

HUG Price Ceiling at 28.35 Million KRW per Pyeong... Over 900 Million KRW for 84㎡+
No Mid-term Loan, Possible Low Competition Rate... Subject to Future Changes
3-Min Walk to Junghwa Station, Prime Location, Jungnangcheon & Jangmi-gil Behind Complex
Potential Development of Nearby Old Residential Area, Dongbu Expressway Underground Project Also a Positive Factor

[Asia Economy Reporter Hwang Seoyul] After a long time, news of a large-scale complex sale has emerged in Seoul. It is the 1,000-unit-scale redevelopment complex in Junghwa 1 District called 'Riversen SK VIEW Lotte Castle.' This precious complex is launching sales despite obstacles such as a transaction freeze due to interest rate hikes, falling real estate prices, and construction cost conflicts. Currently, the association has submitted the sale price review to Jungnang-gu Office and is awaiting the results. Although the schedule may be adjusted depending on the outcome, the target sale schedule is November. 'Naejip Road' conducted a proxy site visit of the apartment to carefully examine if there are any points to note and to assess its market value.

On the 21st, a view from a high-rise of the housing redevelopment project site in Junghwa 1 Redevelopment Promotion Zone, Jungnang-gu, Seoul / Photo by Seoyul Hwang chestnut@

Sale price of 28.35 million KRW per pyeong... Competition rate may be low for units over 84㎡

'Riversen SK VIEW Lotte Castle (Junghwa 1 District)' bird's-eye view / Photo by Seoul City Maintenance Project Information Mongttang

Riversen SK VIEW Lotte Castle is located at 331-1 Junghwa-dong, Jungnang-gu, Seoul, and will be built with 2 basement floors and 13 to 15 floors above ground, totaling 1,055 households. Among these, 501 units are planned for general sale. The exclusive area ranges from 39㎡ to 100B㎡. The sale price approved by the Housing and Urban Guarantee Corporation (HUG) is 28.35 million KRW per 3.3㎡. Since Jungnang-gu is an area where the sale price ceiling system does not apply, a somewhat high sale price has been set. However, since the district office review is still pending, there is a possibility of future changes.

If the sale price is confirmed as is, the 84㎡ housing type will exceed 900 million KRW. HUG’s interim payment loans are limited to houses priced below 900 million KRW, so houses priced above 900 million KRW may face difficulties in obtaining loans. This is an important point to check.

On the other hand, the competition rate may decrease. In the case of 'Raemian Elinity,' built through the Yongdu 6 District redevelopment, the sale price of housing types over 84㎡ exceeded 900 million KRW, causing the competition rate and subscription points to drop sharply. For units under 84㎡, the competition rate ranged from a minimum of 72:1 to a maximum of 164.71:1, with the average winning score being at least 61.29 points. In contrast, for units over 84㎡, the highest competition rate was 21.97:1, and the average winning score closed at the 50-point level.

View of the Junghwa 1 District site from the deck on the Rose Road-Jungnangcheon Junghwa Sports Park route / Photo by Seoyul Hwang chestnut@

Compared to nearby apartment market prices, there seems to be no significant advantage. Mukdong I-Park (84㎡) was last traded at 890 million KRW in June, after which transactions have stopped. Although there are no listings, the market atmosphere suggests prices are continuing to decline. Subscription experts also predict that full sales within the ranking will be difficult given the current real estate market atmosphere. Non-ranked subscriptions may also need to be considered.

There are also points to note when applying for subscription. Since the complex is located in a speculative overheating district (subscription overheating area), to apply for first-priority subscription, one must be the head of the household, and both the head and household members must be either homeless or own only one house. Additionally, neither the head nor household members should have won another house in the past five years.

The subscription savings account must have been held for more than two years, and the deposit amount must meet the requirements by region and area. To apply for first-priority in the relevant area, one must have lived in Seoul for more than two years as of the resident recruitment announcement date. Those who have lived less than two years or reside in the metropolitan area outside Seoul can apply for first-priority in other areas.

3-minute walk from Jungnang Station on Line 7... Opposite are Rose Road and Jungnangcheon Stream

Intersection in front of the Jung-hwa 1 District site. Commercial area including restaurants, cafes, and marts is established.
Photo by Seoyul Hwang chestnut@

On the 19th, I visited the site myself. The term 'super station area' perfectly fits this complex. It took only 3 minutes on foot from Exit 4 of Jungnang Station on Seoul Subway Line 7 to reach the complex. Unlike the noisy and crowded central Seoul, the area immediately outside Jungnang Station has a quiet and peaceful residential atmosphere.

The complex is located at the eastern edge of Seoul, but using Line 7 Jungnang Station, one can reach the central business district within an hour. It takes 39 minutes from Jungnang Station to both Gangnam Station and Gwanghwamun. A 14-minute walk from the complex is Jungnang Station on the Gyeongui-Jungang Line, and it takes 20 minutes to Sangbong Station, where GTX-B is planned. Buses are also available right next to the complex. From the 'Jungnang 2-dong Community Center' bus stop, you can take buses 273, 1122, 2115, and 2235, which provide direct access to Kyung Hee University, Hankuk University of Foreign Studies, Korea University, Hongik University, and more.

Jungnangcheon located just behind the complex. Several residents enjoying walks or leisure activities could be seen.
Photo by Hwang Seoyul chestnut@

On the way from Jungnang Station to the complex, there is a commercial area with cafes, bars, and hair salons. These are mostly low-rise villas under three floors and neighborhood living facilities. At the intersection right in front of the complex, a more developed commercial area is formed. Just crossing one crosswalk, you can enjoy Starbucks, Bonjuk, barbecue restaurants, and more.

Within Jungnang-gu, there are large marts such as Homeplus, Costco, and E-Mart, as well as cinemas like CGV and Megabox, all accessible within 10 minutes by car. Educational facilities such as Sinmuk Elementary School, Jungnang Middle School, and Mukdong Elementary School are within an 8-9 minute walk, and Junghwa High School is about 10 minutes away.

The biggest advantage of the complex is the nearby green spaces. Just crossing the crosswalk behind the complex leads to Seoul Rose Road. Walking along the deck beside Rose Road, you can also enjoy Junghwa Sports Park, which is centered around Jungnangcheon Stream. The water is clear and the open space is perfect for walking. The park is equipped with futsal fields, tennis courts, and roller/skate rinks, making it great for hobbies and leisure activities.

Many nearby villas with development potential... Undergrounding of Dongbu Expressway also a positive factor

Aged low-rise residential area across the complex. The Jungwhayeok 2-7 Street Housing Redevelopment Project Promotion Committee has hung banners around the neighborhood encouraging the submission of consent forms for the establishment of the association.
Photo by Seoyul Hwang chestnut@

The Junghwa 1 District, where the complex is located, is surrounded by aging low-rise houses. Several districts are planning redevelopment projects. In fact, across from the complex, the Junghwa Station 2-7 Street Housing Maintenance Project Association Promotion Committee has put up promotional banners to obtain consent for establishing the association. Besides this, redevelopment projects are also underway in Junghwa 2 and 3 Districts.

On the site adjacent to the complex, the Junghwa 2-dong Complex Office (scheduled for August 2024) is planned to be built. It is expected to be convenient for administrative tasks near the complex.

Nearby real estate agents cited the undergrounding project of the Dongbu Expressway as a positive factor. This project involves installing a deep 4-lane road tunnel in the Wolreung IC to Wolreung-daero section and undergrounding the existing Dongbu Expressway section to separate long- and short-distance traffic. Construction is scheduled to begin in 2023.

Once completed, travel time between the southeast and northeast areas is expected to be reduced from about 30 minutes to about 10 minutes. The city is actively promoting this project and has also established plans to transform Jungnangcheon Stream into a 'waterfront emotional hub.' The green spaces in the area are expected to improve further.