Rising Bid Prices for Daechi Prugio Summit Reserved Lots Amid Housing Price Bottom Theory

Amid discussions of a 'bottoming out' theory for apartment prices in Seoul, the minimum bid price for the reserved units at Daechi Prugio Summit in Gangnam-gu, Seoul, has been raised, drawing attention.

According to Seoul City's comprehensive redevelopment project information on the 20th, the Daechi Summit association announced on the 12th that it is conducting a bid sale for reserved units. The listings include a total of four units: one unit with an exclusive area of 84㎡ and three units with 59㎡ each. The bidding period runs until the 21st, and the successful bidder will sign the contract on the 24th.

Reserved units refer to the quantities left unsold by the reconstruction or redevelopment association, which is the project implementer, to prepare for potential issues such as omission or errors in members' shares and future lawsuits. Therefore, these units are sold through a highest bid auction rather than a subscription.

Previously, in April, the Daechi Summit association attempted to sell 13 reserved units, setting the minimum bid price for four 84㎡ units between 2.93 billion and 3 billion KRW, and for six 59㎡ units between 2.16 billion and 2.2 billion KRW. However, all units failed to sell due to the bleak real estate market outlook.

This month, the association re-announced the sale after raising the minimum bid price by up to 100 million KRW after about three months. The minimum bid price is now 3.1 billion KRW for the 84㎡ units and 2.25 billion KRW for the 59㎡ units. It is analyzed that the gradual rise in Seoul apartment prices during the first half of the year influenced this decision. A construction company official said, "The minimum bid price for reserved units can be set autonomously by the association," adding, "Considering this is Gangnam in Seoul, it is not unusual to raise the bid price even when there are talks of a bottoming out in housing prices."

The association plans to proceed with the sale of the four units first and, if the response is positive, accelerate the sale of the remaining units. An association official said, "The 84㎡ unit is on the 9th floor, which is very good," and added, "Reserved units are not subject to land transaction permits and do not have a mandatory residency requirement, so they attract a lot of interest from potential buyers."