12 Complexes Launching Sales This Week, "Concerns Outweigh Expectations"

[Asia Economy Reporter Cha Wanyong] As construction companies release their final batch of housing units within the year, about 8,400 apartment and officetel units will be supplied nationwide this week. However, due to the recent sharp decline in housing prices and soaring mortgage loan interest rates, many of these units are expected to face difficulties in subscription.

According to the Korea Real Estate Board on the 19th, a total of 8,441 units across 12 complexes nationwide will be offered this week, with 5,499 units available for general sale. In particular, some large branded complexes in the Seoul metropolitan area, including Seoul and Incheon, as well as certain regional sales, are attracting attention for their subscription success.

First, significant interest is focused on the subscription (1st priority on the 19th) for "Mapo The Classy," supplied through the Ahyeon 2 District housing reconstruction project at 662 Ahyeon-dong, Mapo-gu, Seoul. Out of a total of 1,419 units, 53 units with exclusive areas of 59㎡ and 84㎡ will be available for general sale, with the high sale price being a critical point of concern whether it will be accepted by the market. The sale price of Mapo The Classy averages 40.13 million KRW per 3.3㎡, which is more expensive than Olympic Park Foreon (38.29 million KRW per 3.3㎡). Additionally, the absence of intermediary loan institutions for the interim payment by the developer and contractor negatively affects subscription success. Also, the payment schedule requires 20% deposit in early January, 20% interim payment within 30 days after contract, and 60% balance on the move-in date, making the payment period tighter than pre-sale housing, which is considered a disadvantage.

Gangdong Heritage, located near Olympic Park Foreon, will offer 219 units of 59㎡B (113 units for special supply and 106 units for general supply) for general sale (1st priority on the 20th). The sale price ranges from 654.85 million KRW to 775 million KRW for the 59㎡ units. Compared to Olympic Park Foreon, the price is 300 to 400 million KRW cheaper, and considering the scarcity of new apartments in the area, it is analyzed to be competitively priced.

In Incheon, "Hillstate Incheon City Hall Station" will be offered through the Baegun 1 District housing redevelopment project in Ganseok-dong, Namdong-gu (1st priority on the 20th). Out of 746 small to medium-sized apartments ranging from 59㎡ to 84㎡, 485 units, accounting for 65%, are for general sale. The average sale price per 3.3㎡ is 18.31 million KRW, with the 59㎡ and 84㎡ units averaging 447 million KRW and 612 million KRW, respectively.

The sale price of the 84㎡ units is lower than that of "Incheon City Hall Station Hanshin The Hue" (630 million KRW) and "Hanwha Forena Incheon Guwol" (618 million KRW), which were launched in Ganseok-dong and Guwol-dong in May and July, respectively. The sale price of the main 59㎡ type is also below that of the same type in Incheon City Hall Station Hanshin The Hue (450 million KRW).

However, due to the severely depressed sales market in the surrounding area, the outlook for subscription results is somewhat negative. In fact, Hanwha Forena Incheon Guwol, which was previously sold, succeeded in closing the 1st priority general supply with a competition rate of 8.54 to 1, but due to successive contract cancellations, it is currently conducting a non-priority subscription.

In the provinces, Hillstate Seonhwa The Wise, supplied in the Seonhwa-dong area of Jung-gu, Daejeon (1st priority on the 20th), is receiving both expectations and concerns. The sale price for 84㎡ units is set between 539 million KRW and 579 million KRW, which is considered less competitive compared to "Jungchon SK View" in Jung-gu, sold in July, priced between 464 million KRW and 524 million KRW.