Following Dunchon Jugong, Mapo The Classy Also Sells Out... Ultimately, 'Location' Is Key

Initial Contract Rate Low but Completed Through Jupjup
Despite High-Interest Sales Slump, Location Remains Key

Following Olympic Park Foreon (Dunchon Jugong) in Gangdong-gu, Seoul, Mapo The Classy in Ahyeon-dong, Mapo-gu, Seoul has also been completely sold out. Despite recording a low contract rate due to the high sale price of over 40 million KRW per 3.3㎡, the first such price outside the Gangnam area, all units eventually found owners. This once again proved that location is the key factor determining subscription results, even amid the cold wave hitting the sales market.

According to the sales industry on the 24th, Mapo The Classy, a reconstruction of Ahyeon 2 District, succeeded in complete sales after a non-priority subscription. In the general subscription held in December last year, 1,028 applications were received for 53 units, recording an average competition rate of 19.4 to 1. The complex is located between Ahyeon Station and Ewha Womans University Station on Subway Line 2, offering excellent proximity to major business districts for both work and residence.

However, the contract rate among winners and preliminary winners was only 49%, leaving 27 units unsold. The low contract rate was attributed to the sharp drop in housing prices, the high sale price exceeding 40 million KRW per 3.3㎡ for the first time outside Gangnam, and the tight payment deadlines due to post-sale delivery. Consequently, three rounds of non-priority subscriptions, known as 'jupjup', were conducted, resulting in all units finding owners.

Earlier on the 22nd, Dunchon Jugong, the largest reconstruction complex, was also completely sold out. By the end of last month, 3,869 out of 4,768 units had been sold through winner contracts, but more than 40,000 people flocked to the non-priority subscription starting on the 8th, leading to all units being sold. Olympic Park Foreon shares a living area with Songpa-gu and benefits from proximity to Dunchon-dong Station on Subway Line 5 and Dunchon Oryun Station and Central Veterans Hospital Station on Line 9.

Despite the subscription cold wave, apartments in Seoul with excellent locations are overcoming unsold units and ultimately achieving full sales. This is interpreted as further proof that despite obstacles such as high sale prices and increased interest burdens, real demand eventually concentrates in well-located areas.

Moreover, as the government has significantly eased real estate regulations through the 1·3 measures, the sales market is gradually regaining momentum. The number of lottery-based units has increased, resale restrictions have been shortened, and voices claiming that housing prices have bottomed out due to the depletion of urgent sale properties are growing. According to the Korea Research Institute for Human Settlements, the nationwide apartment sales outlook index in March rose by 2.5 points from the previous month to 73.6 points. In particular, Seoul's index sharply increased from 61.9 points to 82.2 points. In fact, Yeongdeungpo Xi Dignity, the first apartment to be sold in Seoul after the 1·3 measures, attracted nearly 20,000 applicants for 98 units.

A representative from the Korea Research Institute for Human Settlements explained, "The significant improvement in Seoul's outlook index is due to a combination of the government's strong deregulation policies, interest rate cuts by financial institutions, easing of loan regulations, and recognition of bottom prices in areas with large price drops," but added, "On the other hand, there are mixed situations where outlooks have worsened in regions such as Gyeongnam, Gwangju, Gangwon, and Gyeongbuk."