Exclusive area 84㎡, listed at 2.79 billion KRW but failed
Resale on the 15th of next month at a minimum price of 2.232 billion KRW
[Asia Economy Reporter Hwang Seoyul] Eunma Apartment, which appeared in the auction market for the first time in 5 years, was withdrawn due to a high appraised price set at about 2.8 billion KRW.
According to court auction information company Gigi Auction on the 10th, the Eunma Apartment unit on the 12th floor of Building 22 with an exclusive area of 84㎡ that was put up for auction that day was withdrawn. The appraised price is 2.79 billion KRW. The minimum price for the next sale date on the 15th of next month is expected to be 2.232 billion KRW, which is 20% lower than the initial appraised price.
The reason for the withdrawal is analyzed to be that the appraised price was too high. The appraisal was made in May, when the decline in sale prices was not as severe as now. Even compared to recent sale prices, the appraised price seems high. A similar unit on the 2nd floor with the same area was sold for 1.99 billion KRW last month. In September, a unit on the 13th floor, similar to the auctioned unit, was sold for 2.14 billion KRW, which was 650 million KRW lower than the appraised price.
Industry insiders expect that although the number of bidders may be small, the property is likely to be sold at the next auction date on the 15th of next month. This is because interest in Eunma Apartment has increased recently after the reconstruction review passed for the first time in 19 years. According to the redevelopment plan, the existing Eunma Apartment complex, consisting of 28 buildings and 4,424 households, will be rebuilt into 33 buildings with 5,778 households (including 678 public housing units). The Eunma Apartment Reconstruction Association Promotion Committee is preparing to establish the association.
It is also expected to have a positive effect that acquiring the property through auction is not subject to the land transaction permit zone regulations. The area around Eunma Apartment was re-designated as a land transaction permit zone by Seoul City in June, extending the designation period by one year from June 23, 2020, to June 22 of this year. When selling units within the permit zone, there is an obligation for actual residence, but this obligation is exempted if the property is acquired through auction.
Senior researcher Lee Juhyun of Gigi Auction explained, "If the urgent sale properties currently on the market are sold out by the next auction date, the minimum price to be set next is not a price range without advantages," adding, "There is also the advantage of not being subject to land transaction permit zone regulations, allowing for lease options."
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