A Big Market for Redevelopment and Reconstruction Sales in Q4... 16,600 Units Available for General Supply

Double the Supply Compared to Q3 Pre-sale Volume
Second Half's Biggest Pre-sale Market 'Imun I-Park Xi' Launching This Month
First Pre-sale Site in Gangnam 3 Districts 'Hillstate ePyeonhansesang Munjeong' Launching Next Month

The volume of general sales through redevelopment and reconstruction maintenance projects in the fourth quarter of this year is expected to reach about 16,600 units, the largest scale within the year. Since most of the contracts were won by large construction companies with high preference and many of the sale complexes are well-located, strong interest from buyers is anticipated.

[Image source=Yonhap News]

According to Real Estate R114 on the 12th, the largest number of redevelopment and reconstruction maintenance project complexes will be supplied in the fourth quarter of this year. The redevelopment and reconstruction complexes scheduled for sale in the fourth quarter total 37 complexes nationwide, with 42,773 units. Among these, 16,614 units excluding union member allocations will be supplied as general sales. This is more than double compared to the third quarter of this year, which had 18,217 units (7,519 units for general sales). About 40% of the total volume will be concentrated in the metropolitan area. By region, there are △ Seoul 10,084 units, △ Gyeonggi 10,040 units, and △ Incheon 1,370 units.

Apartments supplied through maintenance projects are built in urban areas with established living infrastructure, and since large construction companies preferred by buyers are selected during the contracting process, they also have brand power, which is expected to generate strong interest from buyers.

In fact, maintenance project apartments performed well even in the sluggish sales market. According to Real Estate R114, the average first-priority subscription competition rate for redevelopment and reconstruction maintenance project complexes nationwide this year was 24.35 to 1. This exceeds the 6.47 to 1 competition rate for complexes excluding redevelopment and reconstruction maintenance projects during the same period.

Among the major complexes scheduled for sale in the fourth quarter is ‘Imun I-Park Xi,’ regarded as the biggest property in the Seoul sales market in the second half of the year. This complex, supplied by HDC Hyundai Development Company and GS Construction through the Imun 3 District maintenance project in Imun and Huigyeong New Town, Dongdaemun-gu, Seoul, consists of three apartment complexes with 25 buildings ranging from 6 basement floors to a maximum of 41 floors above ground, totaling 4,321 units, and one officetel building with 594 units. In this sale, a total of 1,467 units with exclusive areas of 20 to 102㎡, excluding officetel, union member, and rental units, will be generally sold this month. It is located at Hyoja Station on Seoul Subway Line 1, a super-station area, and the nearby Huigyeong Xi Decencia, which was sold earlier, had prices of the 59㎡ and 84㎡ units in the high 700 million KRW and high 900 million KRW ranges, respectively. The Raemian La Grande’s prices were in the high 800 million KRW for 59㎡ and high 1 billion KRW range for 84㎡ units. Since Imun I-Park’s location is relatively superior to Raemian La Grande, many expect its sale price to be set higher.

The consortium of Hyundai Engineering and DL E&C is also scheduled to sell ‘Hillstate e-Pyeonhansesang Munjeong’ next month through the housing reconstruction maintenance project in Munjeong-dong, Songpa-gu, Seoul. This complex, the first sales project in the Gangnam 3 districts this year, consists of 14 buildings ranging from 2 basement floors to 18 floors above ground, with a total of 1,265 units sized 49 to 84㎡. The sale was originally planned for this month but was postponed to next month due to disagreements among union members over the general sale price setting and construction cost increases.

The Daewoo Construction consortium (Daewoo Construction, Lotte Construction, Hyundai Engineering) is also scheduled to sell ‘Trius Gwangmyeong’ this month through the Gwangmyeong 2R District housing redevelopment maintenance project in Gwangmyeong-si, Gyeonggi-do. This complex consists of 26 buildings ranging from 3 basement floors to 35 floors above ground, with a total of 3,344 units sized 36 to 102㎡, of which 730 units will be supplied as general sales. It is a post-sale complex scheduled for move-in next year, so move-in is faster than pre-sale apartments. It is within walking distance of Gwangmyeongsageori Station on Subway Line 7 and Gaebong Station on Line 1. The sale price for the 84㎡ units ranges from 1,019.4 million KRW to 1,153.8 million KRW.