Pyeongchang-dong Newlywed Couple's Home Sold at Auction for 10.5 Billion KRW... Expected to Launch General Sale

Due to financial difficulties faced by the developer, the land and unfinished buildings in the 39-1 area of Pyeongchang-dong, Jongno-gu, Seoul, which were auctioned off, have found a new owner after the eighth bidding (6 private and 2 public auctions). This site was originally under a sales performance agreement with Seoul Housing & Communities Corporation (SH) to supply housing to newlywed couples without homes, but the agreement was voided as the ownership changed. The new owner is expected to proceed with general sales.

Land and an unfinished building in the area of 39-1, Pyeongchang-dong, Jongno-gu, Seoul, where a new bidder appeared in the 8th auction. This place was where SH had signed a sales performance agreement for newlywed couples without housing, but the agreement was canceled as the public auction proceeded.

According to the Korea Asset Management Corporation (KAMCO) asset disposal system Onbid on the 28th, the land and unfinished buildings in the 39-1 area of Pyeongchang-dong, Jongno-gu, Seoul, were sold at the lowest bid price of 10.5 billion KRW during the auction held on the 18th of last month. The initial appraisal price was 16.9879 billion KRW, but through six private auctions held on March 16 (2 times), 21, and last month on the 4th (2 times) and 7th, as well as the 7th and 8th auctions on the 18th of last month, the price was discounted by about 40%.

The site consists of an apartment building with 38 households, ranging from two basement floors to six above-ground floors, which was nearing completion. SH had signed a sales performance agreement in January to supply rental housing for newlywed couples without homes. However, as the property went to auction, the agreement with SH was naturally terminated.

Going forward, this site is expected to be developed as a general sales project rather than housing for newlywed couples. According to SH’s regulations related to purchased rental housing, the purchase agreement is automatically canceled due to the establishment of restricted rights, and buildings under construction or completed are not subject to new contracts.

An SH official stated, “The Pyeongchang-dong newlywed couple housing project has already had its sales performance agreement canceled,” adding, “Structurally, it is difficult to reinitiate the newlywed couple housing project at this location.”