[Naejip Road] LTV Relaxation and Post-Sale Move-In, Ahyeon New Town 'Mapo The Classy'

53 Households for Sale Next Month... Expected 40 Million KRW per 3.3㎡
"Loan Regulation Easing Presents Opportunity for Some to Enter Mapo"
Interest Rates Still Burden... Meraepeu 84㎡ Around 1.7 Billion KRW

◎Property Information: Mapo The Classy / Expected Sale Price 40 Million KRW per 3.3㎡ / Pre-sale Right for Exclusive Area 84㎡ Traded at 1.767 Billion KRW in April

In December, when the loan-to-value ratio (LTV) for mortgage loans for non-homeowners will be unified at 50%, 'Mapo The Classy,' the only reconstruction apartment in Ahyeon New Town, Mapo-gu, Seoul, is set to launch its sale.

The complex can be reached by exiting Ahyeon Station on Subway Lines 2 and 5 at Exit 4, walking about five minutes along the main road, then turning left into a side alley. It is also possible to walk past 'Mapo Raemian Prugio' (hereafter Marapu), the leading apartment complex in the area, which is located near Ahyeon Market, although this route involves an uphill slope that may be tiring. However, the internal leveling of the complex has been widely praised as 'successful.' This is the opinion of local real estate agents who toured the complex during the preliminary inspection period last month.

Although Far from 'Lotto' Status... Quick Move-in with Post-sale

'Mapo The Classy' complex appearance / Photo by Kyungjo Noh felizkj@

The number of general sale units in Mapo The Classy, a post-sale complex, is not large?only 53 out of a total of 1,419 households. This is expected to increase demand for subscription savings accounts. The union members are scheduled to move in starting from the 30th of this month. The expected general sale price is reported to be 40 million KRW per 3.3㎡.

If this holds, the price for an 84㎡ (exclusive area) unit will exceed 1.2 billion KRW. This may feel somewhat expensive during the current real estate market downturn. Especially since the union members’ sale price was set at about 19 million KRW per 3.3㎡, making an 84㎡ unit around 600 million KRW. Initially, the sale price was expected to be around 900 million KRW, earning it the nickname 'Lotto,' but this label has become less fitting.

However, the reconstruction of Dunchon Jugong Apartment in Gangdong-gu (Olympic Park Foreon), scheduled for sale next month, is being discussed at 39 million KRW per 3.3㎡. Considering the location in Mapo, some believe the price is not unreasonable.

The construction company, HDC Hyundai Development Company, stated, "The local government’s price review is expected to be completed by the end of this month, so we need to see if any adjustments will be made. The union likely judged that the price is appropriate compared to surrounding complexes." They also noted that the small number of general sale units likely influenced the additional union members’ contributions.

The adjacent Marapu 84㎡ units currently have a price floor of 1.7 billion KRW. According to the Ministry of Land, Infrastructure and Transport’s real transaction disclosure system, a recent transaction in Complex 4 was recorded at 1.715 billion KRW in September this year. This is over 200 million KRW lower than the transaction price about a year ago (1.94 billion KRW). In Complexes 1 and 3, sales were made at 1.84 billion KRW in July and 1.825 billion KRW in June, respectively. Although these transactions show a smaller drop compared to last year’s record highs of 1.9 billion KRW per complex, it is likely that prices will trade around 1.7 billion KRW in the next downturn.

Although located at a similar distance, Mapo Prestige Xi in Yeomni-dong is still showing a steady trend. This complex, which moved in December last year, saw its 84㎡ unit first traded at 1.95 billion KRW in September this year. How well these complexes hold up will significantly influence the price movement of Mapo The Classy’s pre-sale rights.

LTV 50% Applied from Next Month, Should We Aim for Entry into Mapo?

'Mapo The Classy' playground facilities within the complex / Photo by Kyungjo Noh felizkj@

During the period of tight loan regulations and rising interest rates, the target demand group was mainly those with substantial cash reserves. However, with the government unifying the LTV regulation for non-homeowners at 50% starting in December and increasing the LTV preferential loan limit for low-income and actual demanders in regulated areas from 400 million KRW to 600 million KRW, the demand base is expected to expand.

Mortgage loans will also be allowed for apartments exceeding 1.5 billion KRW in speculative overheated districts. Mapo The Classy’s 84㎡ pre-sale right was traded at 1.767 billion KRW in April. A representative from Agency A said, "Due to the post-sale nature, the processing of interim and final payments is expected to proceed quickly. Although interest rates remain high and burdensome, some may see this as an opportunity to enter Mapo."

Excluding Yeomni 4 and 5 districts, which have experienced setbacks in the Ahyeon New Town project covering Gongdeok, Ahyeon, and Yeomni-dong, Mapo The Classy is the only large complex with over 1,000 units left for new sale. Raemian Gongdeok 4th Complex in Gongdeok 4 District was completed in 2005 and has not yet met the reconstruction age requirement. Broadly speaking, Mapo Xi Hillstate (reconstruction of Gongdeok 1 District) is being developed as a large complex but its sale has been delayed, and Ahyeon 1 District, famous as the filming location of the movie 'Parasite,' declared public redevelopment not long ago.

Meanwhile, real estate agents report that Mapo The Classy has well-established living infrastructure such as subway stations, supermarkets, and parks, and is close to Hanseo Elementary, Ahyeon Middle, and Jungang Girls’ High School, making it suitable for various family types from couples to families with children. Although Mapo has been considered weak in school districts, the neighborhood is gradually improving through redevelopment projects. Additionally, as the surrounding area continues to develop, it may be difficult now but could offer future capital gains.

Satisfaction with the design is also reportedly high. Walking through the complex, not only is the leveling well done, but the distances between buildings are wide, and rest areas such as ponds are spaciously arranged. The complex’s elevated terrain is used to emphasize verticality on the side walls, which stands out and enhances the sense of openness. There are also many playgrounds scattered throughout.

A representative from Agency B said, "There are issues such as the final sale price and whether all subscription winners will actually sign contracts, so nothing is guaranteed. However, the 100% point-based system is expected to attract significant interest."