Former KT Gangdong Branch Site 'Gangdong Station SK Leaders View' to Launch Sales on the 20th

84·99㎡ Type Priced from 951 Million to 1.356 Billion KRW

[Asia Economy Reporter Cha Wanyong] The residential officetel ‘Gangdong Station SK Leaders View,’ which had difficulty finalizing its sales schedule due to the real estate market downturn, will begin sales on the 20th. It will be offered in two types with exclusive areas of 84㎡ and 99㎡, and the sales price is set between 951 million and 1.358 billion KRW.

Image cut of 'Gangdong Station SK Leaders View'.

On the 15th, DS Networks (developer) and SK Ecoplant (constructor) announced that the sales for Gangdong Station SK Leaders View, located on the former KT Gangdong branch site, will commence on the 20th. The complex consists of three buildings from six basement floors to 20 above-ground floors, with 378 units ranging from 84 to 99㎡ in exclusive area, along with approximately 15,000㎡ of commercial facilities.

The sales price for the 84㎡ type ranges from 951 million to 1.149 billion KRW, and for the 99㎡ type, from 1.212 billion to 1.356 billion KRW. Considering that these officetels do not include balcony or other service areas, they can be compared to the previously sold Dunchon Jugong (Olympic Park Foreon) units with exclusive areas of 59㎡ and 84㎡.

The Dunchon Jugong sales price averaged 38.29 million KRW per 3.3㎡, with the 59㎡ type priced between 979.4 million and 1.0625 billion KRW. The 84㎡ type was supplied at prices ranging from 1.236 billion to 1.3204 billion KRW. Ultimately, the sales prices of Gangdong Station SK Leaders View (59㎡ and 84㎡ types) and Dunchon Jugong (59㎡ and 84㎡ types) are quite similar.

So far, DS Networks, the developer, has struggled to set the sales schedule for Gangdong Station SK Leaders View. Despite the real estate market slump causing many unsold units, it was unavoidable to set the sales price above a certain amount because they need to recover approximately 151 billion KRW spent on land acquisition.

DS Networks purchased the Gangdong Telephone Office site (7,715㎡, 415-9, Gildong, Gangdong-gu, Seoul) from KT in August 2020. It is a prime location right in front of Gildong Station on Subway Line 5, and the land acquisition cost nearly 160 billion KRW at the time, with the pure land price excluding acquisition tax and appraisal fees reaching 151 billion KRW.

Originally, DS Networks planned to sell last year, but delayed the supply due to the real estate downturn and delays in Dunchon Jugong sales. Recently, as even Dunchon Jugong struggled in subscription, the supply price was adjusted. According to industry sources, it was lowered by about 10% compared to the original price. Additionally, considering the increased interest burden, they decided to offer full interest-free benefits on the interim payments.

However, the industry predicts that it will take some time to complete sales of Gangdong Station SK Leaders View. Even large apartment complexes with over 10,000 households are not easy to sell, so selling fewer than 400 residential officetel units is expected to be challenging.

Meanwhile, the announcement of successful applicants for Gangdong Station SK Leaders View will be on the 23rd, and the contract signing date is the 24th.