Controversy Over Unsold Apartment Units in Gwangyang, Jeonnam
Notice to Prevent New Tenants from Moving In
‘Moving in requires a 5 million won elevator usage fee’
This is a notice posted in an apartment complex in Gwangyang-si, Jeollanam-do, where residents began moving in earlier this year. It is a measure taken by existing residents to prevent new residents from moving in after the construction company offered discounted sales.
On the 23rd, a user of an online community posted a photo of a notice detailing residents' resolutions, saying, "Because of unsold units, the construction company is offering discounted sales, but the existing residents are banding together to prevent those who bought at a discount from moving in."
Measures that existing residents plan to implement targeting discounted sale residents. [Photo by Online Community FM Korea Capture]
The author, Mr. A, posted a photo of the ‘Residents’ Resolution’ content, saying, “They say they will block new residents until apartment prices rise.”
According to the resolution, if it is discovered that a discounted unit has moved in, the following measures apply: ▲parking fees multiplied by 50 times per vehicle ▲no use of apartment community and common facilities ▲a 5 million won charge for elevator use when moving in with a discounted unit.
These are effectively measures to block the move-in of discounted units. On another pillar, there was also a notice saying, "Please, delay the contract for a while. Delay contracts with the malicious construction company’s sales agencies and cooperating real estate agents. If residents are given time to discuss, we will welcome you as good neighbors." This appears to be an attempt to completely block even the act of viewing the apartment before purchase.
Construction companies usually sell units at a set price but may offer discounts to attract residents if sales are slow. This is considered better than leaving units unsold for a long time.
Conflicts between existing residents who bought at full price and those who purchased discounted units have existed for some time. From the developer’s perspective, leaving units unsold for a long time increases the risk of further price drops, so they opt for discounted sales. Since construction companies’ discounts are not subject to legal reporting or approval, there is no way to enforce them.
A post in which existing residents appeal to stop the discounted sale contracts. [Photo by Online Community FM Korea Capture]
Previously, in 2013, when about 60% of units remained unsold in an apartment complex in Paju-si, Gyeonggi-do, the construction company offered up to a 30% discount on the sale price to attract residents. Existing residents blocked the main and back gates of the apartment and restricted vehicle access for new residents, leading to conflicts.
In 2010, existing residents of a newly built apartment in Gangneung filed a lawsuit against the construction company that offered discounted sales. However, the court ruled in favor of the developer, broadly recognizing the construction company’s handling of unsold units.
The construction company of the Gwangyang apartment complex is reportedly mediating to prevent conflicts among residents.
Meanwhile, a user who identified themselves as a resident of the apartment on an anonymous workplace community said, "I paid 80 million won out of pocket, and the rest was covered by loans. A 34-pyeong apartment was sold at a discounted price of 240 million won, 80 million won off the original price," adding, "Should we just stand by? Don’t we have to stop this?"
He said, "I’m still furious," and "I will try to block it even by standing guard. I won’t accept losses."
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