Lawsuits Against Discount Sale Developers, Banners Appear One After Another
Barbed Wire and Self-Made Boundaries to Prevent Discount Sale Residents
Daegu Leads Nation in Unsold Properties
In Daegu, incidents of residents fiercely opposing and intimidating when developers attempt discounted sales are occurring repeatedly.
Discount Sale Condemnation Banner Hung at Anshim Hoban Summit Estella Apartment in Dong-gu, Daegu[Photo by Hogangnono]
According to the real estate industry on the 20th, 'Ansim Hoban Summit Estella' in Yulam-dong, Dong-gu, Daegu still has unsold units, but no discounted sale listings have appeared. The developer, Hoban Industries, tried to offer discounted sales with unprecedented conditions such as 'payment of the remaining balance after 5 years' and 'up to 90 million KRW discount' for the unsold units in March and April.
However, this has been put on hold due to residents' opposition. Following a 'truck protest in Seoul' against Hoban Industries in February, on the 13th, residents blocked the apartment entrance with vehicles. It is reported that they demanded discounted buyers pay 20% more in maintenance fees. A local real estate official said, "The company is not conducting discounted sales. The sales office has also been withdrawn," adding, "There are about 18 unsold units left, and they intended to sell the remaining discounted units, but due to strong opposition from residents, it was stopped."
Another unsold apartment in Daegu, 'Billive Heritage' in Suseong-gu, has a sales rate below 20% for its 146 units, and transactions are occurring at prices 300 to 400 million KRW lower than the original sale price. Existing residents have put up banners stating "Second additional provisional seizure confirmed" and "Provisional seizure prevents interim payment loans and registration," erected barbed wire, and even set up their own guards, creating a tense situation. Residents are also demanding partial refunds from the developer based on a special clause stating that "if contract conditions change, previously signed contracts will be retroactively applied (changed) under the same conditions."
Another apartment in Suseong-gu, 'Siji Raon Private,' has also displayed banners at the main gate saying, "Discounted buyers are absolutely not allowed to move in. ○○ Construction must take responsibility." It is known that residents have filed lawsuits against the developer for partial refund of the sales price and have placed provisional seizures on the unsold units.
Meanwhile, according to the Daegu-Gyeongbuk branch of the Bank of Korea's report titled 'Review of Housing and Financial Sector Risks and Future Outlook Due to Continued Sluggishness in Daegu Housing Market,' as of March, the unsold apartment units in Daegu after completion accounted for 13.3% of the nationwide unsold units, the highest among metropolitan cities in the provinces.
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