Seoul Housing and Communities Corporation (SH Corporation) plans to introduce land leasehold sale housing, commonly known as ‘half-price apartments,’ in Magok, Gangseo-gu, this May. The supply price is expected to be set at a level similar to that of the Godeok Gangil 3 Complex, which saw a successful pre-reservation last month.
Location map of the land leasehold sale housing site planned in Magok District, introduced at the Magok District 9 Complex Sale Cost Disclosure Briefing held on the 21st at the Seoul Housing & Communities Corporation (SH Corporation) main conference room [Photo by SH Corporation]
On the 21st, at a press briefing held in the company’s main conference room, SH President Kim Heon-dong stated, “We plan to supply land leasehold sale housing in Magok 10-2 Complex and the nearby taxi garage site in Gangseo-gu this May.” He added, “Although the supply price has not been finalized yet, it will not deviate significantly from the level of the previously supplied Godeok Gangil 3 Complex.” Regarding the timing of additional pre-sale applications, President Kim said, “They will not be conducted all at once but will be divided into two phases.”
Land leasehold sale housing means that the public sector owns the land, while the ownership of the buildings is acquired by the buyers. Residents can live for 40 years and, through renewal (another 40 years), can reside for up to 80 years. Since the land price is excluded from the sale price, it has the advantage of being cheaper than market prices.
Previously, the estimated price for a 59㎡ (exclusive area) unit in the Godeok Gangil 3 Complex was about 355 million KRW, with a monthly land lease fee set at 400,000 KRW. This complex recorded high competition rates in the pre-reservation: 67 to 1 for general supply and 33.1 to 1 for special supply.
Kim Heon-dong, President of Seoul Housing and Communities Corporation (SH Corporation), is disclosing the sale cost of Magok District Complex 9 at a press briefing held at SH Corporation in Gaepo-dong, Gangnam-gu, Seoul on the morning of the 21st. [Photo by Yonhap News]
SH Corporation plans to supply additional land leasehold sale housing in various areas of Seoul besides Magok. Discussions appear to be ongoing regarding several areas, including Eunpyeong-gu. President Kim said, “We are currently in discussions with the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government. The secured sites concretely amount to about 8,000 to 9,000 households combined for this year and next.”
Land leasehold sale housing is also expected to be constructed as high-rise apartments. President Kim stated, “We will not build rental housing like matchbox apartments but will construct them to be usable for over 100 years and identical to sale housing units. We plan to establish Seoul-style construction costs, materials, and standards that use materials of better quality than KS standards and apply superior construction methods, encouraging material manufacturers and construction companies to continuously develop technology and compete.”
On this day, SH Corporation also disclosed the sales cost of Magok District 9 Complex, which was sold in February 2020. The Magok District 9 Complex sold a total of 962 households, with an average sales cost of 12.913 million KRW per 3.3㎡ and a sales price of 19.368 million KRW per 3.3㎡. For a 59㎡ exclusive area unit, the sales cost was 336 million KRW, and the sales price was 508 million KRW.
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