[Report] "100 Teams Booked in One Hour" Expectation of Sales Market Boom Due to Deregulation

Hwigyeong Ja-i Decencia "Location and Price Reasonable... Noise, Not So Sure?"

On the morning of the 31st of last month at 11 a.m., I visited the Hwikyung Ja-i Decencia model house. Despite it being a weekday, the model house was bustling with visitors eager to take a look on its opening day. A sales official stated, “We received 100 pre-reservations per hour, including one accompanying person per team,” adding, “Currently, all time slots are fully booked, and a total of 4,000 teams are expected to visit over the five days until the first-priority subscription on the 4th.”

On the 31st, visitors are looking around the complex model at the Huikyung Xi Decencia model house located in Daechi-dong, Gangnam-gu.
[Photo by Kwak Minjae]

Following the 1·3 real estate measures, the Seoul housing market is reviving, and Hwikyung Ja-i Decencia has opened its model house in the Imun and Hwikyung New Town areas of Seoul, gearing up for the subscription. GS Construction is introducing a large-scale apartment complex with a total of 1,806 households through the Hwikyung 3 redevelopment promotion zone housing redevelopment project at 172 Hwikyung-dong, Dongdaemun-gu, Seoul. Interest is focused on this complex as Yeongdeungpo Ja-i Dignity in Yangpyeong-dong, Yeongdeungpo-gu, Seoul, succeeded in popularity following the 1·3 measures.

According to the Korea Real Estate Board’s subscription website, Yeongdeungpo Ja-i Dignity recently recorded an average competition rate of 198.8 to 1, with 19,478 applications submitted for 98 households in the first-priority subscription. The so-called “no-order subscription” known as ‘jupjup’ is also showing signs of success. Olympic Park Foreon, a reconstruction of the Dunchon Jugong Apartments in Gangdong-gu, Seoul, attracted 41,540 applicants for 899 jupjup units, resulting in a competition rate of 46.2 to 1.

Upon entering the model house, a massive complex model caught the eye. Hwikyung Ja-i Decencia consists of 14 buildings, each 35 stories high, arranged mainly south-facing on a triangular flat site. Its location is advantageous for convenient transportation, being adjacent to Hoegi Station, where Seoul Subway Line 1, Gyeongui-Jungang Line, and Gyeongchun Line intersect, as well as Hwayang Station on Line 1.

The number of units by exclusive area is ▲39㎡ with 19 units ▲59A㎡ with 78 units ▲59B㎡ with 246 units ▲59C㎡ with 36 units ▲59D㎡ with 247 units ▲84A㎡ with 28 units ▲84B㎡ with 46 units, offering small to medium-sized types that are highly preferred by buyers.

The units available at the model house that day were 59㎡B, 59㎡D, and 84㎡A. Generally, many people prefer the slab-type structure and the popular 84㎡A unit, but on this day, the 59㎡ units attracted the most visitors. Visitor A, who came to the site, said, “I was interested in the 84㎡A, but considering balcony expansion, it’s close to 1 billion KRW, which is a financial burden compared to the 59㎡, and the 59㎡ seems larger than expected,” adding, “Since 59㎡ accounts for 85% of the total supply and is the main unit type, even with a low score, the chances of winning are higher, so my thoughts have changed.”

Living room view of the 59B unit at the Hwikyung Xi Decencia model house.
[Photo by Kwak Minjae]

The pricing of the main unit type is also considered attractive compared to recently supplied complexes in the Gangbuk area. Hwikyung Ja-i Decencia’s average price per 3.3㎡ is 29.3 million KRW, about 1 million KRW higher than Jangwi Ja-i Radiant’s 28.3 million KRW, but the 59㎡ unit’s highest price is 777 million KRW, cheaper than Jangwi Ja-i’s 798.4 million KRW. A sales official explained, “Although the project was exempted from the price ceiling system earlier this year due to deregulation, the developer agreed to supply at a low price to secure stable sales performance.”

Kitchen view of the 59B unit at Hwikyung Xi Decencia model house.
[Photo by Kwak Minjae]

Hwikyung Ja-i Decencia is also a beneficiary of eased real estate regulations. For first-priority subscriptions, residents aged 19 or older living in Seoul, Gyeonggi, and Incheon can apply even if they own a home, and 60% of winners are selected by lottery, allowing those with low scores to have a chance. Additionally, special supply units are allocated for exclusive areas of 84㎡.

However, noise from the above-ground railway is a concern for prospective subscribers. The complex is radially developed northeast from Hoegi Station, where Line 1 and the Gyeongui-Jungang Line pass. The two lines, both above-ground, surround the complex to the north and south.

Regarding this, the developer stated that soundproof walls have been installed, so noise should not be an issue. A sales official said, “Soundproof walls are installed on both sides, and when the windows are closed, noise is barely audible,” adding, “Even when trains pass, normal conversations are not disturbed, and railway noise complies with current building standards, so noise problems are expected to be minimal.”

Meanwhile, the subscription schedule for Hwikyung Ja-i Decencia starts with special supply on April 3 on the Korea Real Estate Board’s subscription website, followed by first-priority subscriptions (for relevant and other regions) on April 4. Winners will be announced on April 11. Contracts will be signed over three days from April 23 to 25.