- Olympic Park Foreon sold at a record high of 1.8 billion won... 100 million won higher than the previous price
- Demand gathers for Gangdong-gu's 'The Sharp Park Soleil Yu' first-come, first-served supply
The exclusive 84㎡ residence rights of 'Olympic Park Foreon,' a reconstruction complex of Dunchon Jugong located in Dunchon-dong, Gangdong-gu, Seoul, were traded at a record high price of about 1.8 billion KRW, with a premium of 500 million KRW added to the sale price of 1.3 billion KRW. This marks an increase of about 100 million KRW compared to the previous transaction.
At the end of last year, the complex showed sluggish performance in the primary subscription with an average competition rate of 3.7 to 1, as the market entered a downturn due to rapidly rising interest rates and a fixed perception of housing prices peaking. A large number of unsold units emerged as contracts were not completed, raising concerns about the appearance of 'Mafi (minus premium)' units.
However, the atmosphere changed early this year due to a series of government deregulations. First, nationwide areas except Gangnam-gu, Songpa-gu, Eunpyeong-gu, and Yongsan-gu were removed from regulated zones. The obligation for actual residence by subscription winners is also set to be abolished, and the resale restriction period will be reduced to one year. One major obstacle, the restriction on interim payment loans, was also lifted, removing loan limits based on housing prices.
Additionally, the requirements for non-priority subscriptions were abolished. Non-priority subscriptions can now be applied for from anywhere, not just by residents of the relevant area, and even if the applicant and household members are not all non-homeowners, they can still apply for non-priority subscriptions. Thanks to this, a total of 41,540 applications were received for the non-priority subscription recruiting the remaining 899 units of this complex, clearing all remaining units.
The rapid recovery of housing prices near Gangdong-gu is also having a positive impact. According to the Korea Real Estate Board, housing prices in Songpa-gu rose by 0.26% this week, more than double the previous week's 0.11%. Gangnam-gu also increased by 0.19%, and Seocho-gu rose by 0.13%. Gangdong-gu, where this complex is located, also saw a 0.05% increase.
An official from real estate agency A in Dunchon-dong explained, "As housing prices rebound mainly in Seoul, especially in the Gangnam area, interest in the entire real estate market around Gangdong-gu, known as the fourth Gangnam district due to its accessibility to the three Gangnam districts, including 'Olympic Park Foreon,' has increased." He added, "Concerns about 'Mafi' have long disappeared, and transactions throughout Gangdong-gu are active."
In this market situation, attention is also focused on The Sharp Park Soleil Yu, supplied by POSCO E&C in Gangdong-gu. The Sharp Park Soleil Yu recorded the highest subscription competition rate of 72 to 1 in November last year, and in the non-priority subscription for remaining units, 1,267 applications were received for 36 units, achieving a competition rate of 35.19 to 1, maintaining steady interest.
The complex is composed of 195 units in total, across four buildings from basement level 2 to ground level 10. It is a post-sale complex with an unusually fast move-in scheduled for June 2023.
Due to reasons such as winners' funding arrangements and some disqualifications, some remaining units of 84㎡ and 118㎡ types have appeared, and a first-come, first-served sale is underway at the model house. Sales are possible regardless of subscription savings account status or residence area. Also, as a post-sale complex scheduled for move-in in June, the resale restriction regulations have been eased, allowing immediate resale after registration, which is another advantage.
Meanwhile, the model house of The Sharp Park Soleil Yu is operating and accepting consultations and visitors.
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