Dunchon Jugong, 20% Cheaper Than Helio City, Can It Sell Out Completely?

84㎡ Sale Price in Early 1.3 Billion KRW Range, Cheaper Than Helio City Market Price
Privacy Guaranteed with Cross-Ventilation Structure and Frosted Glass Applied

View of the Dunchon Jugong reconstruction site in Gangdong-gu, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Cha Wanyong] As the sale of the Dunchon Jugong Reconstruction Apartments (Olympic Park Foreon), considered the largest reconstruction project in South Korea, approaches, the construction and real estate industries are closely watching whether it will sell out.

The atmosphere is positive for now. Due to government deregulation, mid-term loans are available for the 59㎡ exclusive area units, and since it is adjacent to Jamsil, it is expected to match the price level of Heliocity, raising expectations for a sell-out in the sales industry.

According to the real estate industry on the 25th, out of a total of 12,032 units in the Dunchon Jugong reconstruction, 4,786 units excluding those allocated to union members will be sold to the general public. By type, there are 2,061 small units with exclusive areas of 29~49㎡, 1,488 units of 59㎡, and 1,237 units of 84㎡, totaling 2,725 medium-sized units. Units larger than 84㎡ (109~167㎡) are all allocated to union members.

In particular, among the 4,786 units for general sale, the 1,488 units of 59㎡ exclusive area will have mid-term loans available, so the industry expects a large influx of buyers with somewhat insufficient funds.

Currently, the general sale price of Dunchon Jugong is 38.29 million KRW per 3.3㎡, with the 49㎡ units priced at 842.38 million KRW, 59㎡ units at 957.25 million KRW, and 84㎡ units at around 1.3186 billion KRW. For the 84㎡ units, considering options, expansion costs, acquisition tax, and various other taxes, the actual required funds are expected to exceed 1.4 billion KRW. Since the government guarantees mid-term loans only for apartments priced below 1.2 billion KRW, mid-term loans are not available for the 84㎡ units.

On the other hand, for the 59㎡ units, with a 30-year term and applying a Debt Service Ratio (DSR) of 40% and Loan to Value (LTV) ratio of 50%, mid-term loans (including credit loans) ranging from 440 million KRW (annual income of 80 million KRW) to 530 million KRW (annual income of 120 million KRW) can be obtained depending on income.

A sales industry official said, “Compared to other complexes recently sold in Seoul, the 900 million KRW price range for the 59㎡ units is relatively affordable, so many non-homeowners in their 40s and 50s with high points are expected to flock,” adding, “Since the supply volume of Dunchon Jugong is so large, the average points are expected to decrease, and many waiting applicants will jump in at this opportunity.”

Experts compare Dunchon Jugong to ‘Heliocity’ in Garak-dong, Songpa-gu. The market price of Heliocity’s 84㎡ units is around 1.7 to 1.8 billion KRW, so there is an analysis that a price difference of 300 to 400 million KRW can be gained. In fact, Dunchon Jugong’s sale price is about 20% lower than Heliocity’s.

Recently, controversies over housing types such as the kitchen view in neighboring units have been gradually resolved as it was revealed that these plans were intended to improve ventilation and elevator issues in tower-type apartments. Earlier, when the floor plans and layouts of Dunchon Jugong reconstruction were released, there was controversy that the 84㎡E and 59㎡C units were designed with a ‘kitchen view’ where the neighboring unit could be clearly seen through the kitchen window.

Floor plan of Dunchon Jugong Reconstruction 84㎡ Type E unit. [Source=Provided by the association]

A union official emphasized, “Etching (frosted) glass will be applied to block the line of sight from adjacent units, and a closed-type casement ventilation window is planned for ventilation,” adding, “There will be no controversy over privacy exposure.” Furthermore, “In existing H-type apartments, there are mostly two elevators, but Dunchon Jugong is designed with three elevators, greatly improving convenience for residents as well as lighting and ventilation in the elevator hall compared to before, and the open view layout secures the overall view and openness of the complex.”

According to the construction project team and the union, the kitchen view will also apply staggered frosted windows for facing units, making privacy protection possible.

Meanwhile, Dunchon Jugong will start general sales with the announcement of resident recruitment on the 25th, followed by special supply on the 5th and first-priority subscription on the 6th of next month.