30,178 Applicants Rush for 1 Unit Cancellation at Songpa Signature Lotte Castle
Thousands Flock to Non-Sequential Applications in Gwacheon and Wirye... Expected Price Gains of 600 Million to 1 Billion KRW
[Asia Economy Intern Reporter Lee Gyehwa] In Songpa-gu, Seoul, 30,000 real demand buyers flocked to so-called ‘Jupjup (non-priority subscription)’ apartments, where a price difference of around 500 million KRW is expected. Thousands to tens of thousands of people are gathering at these non-priority subscription complexes, where a price difference of several hundred million KRW is anticipated.
According to the Korea Real Estate Board’s Subscription Home on the 28th, 31,780 people applied for one unit of exclusive 84㎡D in the first-priority subscription for the canceled contract housing at ‘Songpa Signature Lotte Castle’ in Geoyeo-dong, Songpa-gu, held the day before.
This large complex consists of 17 buildings, 1,945 units, ranging from basement level 3 to ground level 33, and completed move-in in January this year. Among them, two units had their contracts canceled, leading to the non-priority subscription. Including the special supply of one 84㎡ unit with six applicants held on the 26th, a total of 31,786 people applied over two days.
The reason real demand buyers flocked appears to be the price difference. The sale price ranges from 871 million to 893 million KRW. Including additional costs for balcony expansion, the special supply price is 912.8 million KRW, and the general supply price is 890.8 million KRW, which is similar to the price three years ago.
According to KB Real Estate, the asking price for exclusive 84㎡ units in the Geoyeo-dong area is up to 1.75 billion KRW. The lowest price is around 1.6 billion KRW. The sale price is about half of the asking price. Compared to nearby traded complexes, the price difference is significant. For example, the nearby complex ePyeonhansesang Songpa Park Central’s exclusive 84㎡ unit was sold for 1.475 billion KRW in August. Therefore, a price difference of about 500 million KRW in the late range is expected.
An official from the sales industry explained, "Although the real estate market is sluggish and the subscription market is also weak, complexes priced lower than the market price are performing well. It is true that it is difficult to find new apartments at this price in Songpa-gu, so real demand buyers have shown interest."
Similarly, about 9,000 applicants flocked to the non-priority subscriptions held on the 11th and 12th of this month for ‘Gwacheon Prugio Lavieno’ and ‘Gwacheon Prugio Bellarte’ in Galhyeon-dong, Gwacheon-si, Gyeonggi-do. These complexes also offered prices at the level of two years ago, reflecting the downward trend of the real estate market, so a price difference of at least 600 million KRW was expected.
Earlier, in early August, 4,030 people applied for one unit of exclusive 131㎡ in the non-priority subscription for ‘Wirye Foret Jai’ in Hanam-si. The sale price was 925 million KRW, and considering the nearby market price is over 2 billion KRW, a price difference of over 1 billion KRW is expected compared to the sale price.
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