Main Unit Type 100% Contract Completed
[Asia Economy Reporter Kim Hyemin] Olympic Park Foreon in Gangdong-gu, Seoul (Dunchon Jugong Reconstruction), regarded as the biggest property in last year's pre-sale market, succeeded in selling all its main unit types after completing contracts with preliminary winners. The easing of government regulations appears to have influenced the contract results.
According to the construction consortium on the 14th, Olympic Park Foreon completed contracts for all units of 59㎡ and 84㎡ among the 4,786 general sale units. This includes 1,488 units of 59㎡ and 1,237 units of 84㎡, totaling 2,725 units. These unit types recorded a contract rate close to 70% during the main contract period, which ended on the 17th of last month. A representative from the construction consortium commented, "Considering that recent complexes in Seoul required a 10% down payment of the total sale price, the complete sale of main unit types here with a 20% down payment is a noteworthy achievement."
As a result, only small units of 29㎡, 39㎡, and 49㎡ remain. The construction consortium expects some of these units to also sell out early. A consortium representative emphasized, "With the revival of the registered rental business system, tax benefits have increased mainly for small units and multi-homeowners. Especially in the Gangnam area, rental demand is high, making it a safe investment asset."
The complete sale of Olympic Park Foreon's main unit types seems to have benefited from the significant removal of real estate regulations. Gangdong-gu, Seoul, where the complex is located, was removed from the regulated areas under the 1·3 real estate measures, lifting restrictions such as pre-sale rights resale bans, mandatory residence requirements, and restrictions on mid-term loans exceeding 1.2 billion KRW.
The slowdown in the trend of interest rate hikes, which reduced uncertainty somewhat, and the resolution of urgent sale properties in large apartment complexes in nearby areas have also contributed to the recovery of housing transactions. As transactions recover, prices are also rising. For example, an 84㎡ unit in Helio City, Garak-dong, Songpa-gu, was traded for 1.8 billion KRW last month, increasing by 210 million KRW within a month.
The final contract rate of Olympic Park Foreon is expected to be confirmed through the non-priority subscription units. The non-priority subscription will be held in early next month after all preliminary winner contracts for small units are completed.
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