60 million KRW per pyeong, 2.2~2.3 billion KRW for 84㎡
Banpo Raemian One Pentas '2 billion KRW Lotto'
Bangbae and Dogok see around 1 billion KRW profit
High-point subscription account holders likely to flock to Banpo
The sale prices of reconstruction complexes in Gangnam, Seoul, entering subscription in the second half of this year, are being decided one after another. Although the sale prices are at similar levels, the price difference in market value is expected to exceed 1 billion KRW depending on the complex. The competition among high-point subscription account holders waiting for Gangnam area subscriptions has become even fiercer.
Average Sale Price per Pyeong for Gangnam Reconstruction: 65.71 Million KRW
According to the maintenance industry on the 24th, the average general sale price of Gangnam reconstruction apartments scheduled for sale between this month and next month was calculated at 65.71 million KRW per 3.3㎡.
The general sale price of ‘Raemian Onepentace (Sinbanpo 15th Apartment Reconstruction)’ in Banpo-dong, Seocho-gu, which will start subscription on the 29th, was set at 67.37 million KRW per 3.3㎡. This surpassed ‘Maple Xi’ in Jamwon-dong, Seocho-gu, which was sold in February, recording the highest sale price among complexes subject to the price ceiling system.
Nevertheless, this complex is expected to yield the largest market value gain among those about to be sold. The sale price for an exclusive area of 84㎡ (34 pyeong) is estimated to be around 2.3 billion KRW. However, the newly built nearby complex ‘Raemian One Bailey’ (moved in last August) with an exclusive area of 84㎡ was traded for 4.23 billion KRW in May. It is expected to yield a market value gain of over 2 billion KRW.
‘Raemian Leventus (Dogok Samho Apartment)’ in Dogok-dong, Gangnam-gu, which will be sold at the end of this month, is supplied at 64.8 million KRW per 3.3㎡. This complex is expected to gain at least 600 million KRW in market value. The exclusive 84㎡ unit is expected to be priced around 2.2 billion KRW, while the nearby large complex ‘Dogok Rexle’ (moved in 2006) with 3,002 households had its exclusive 84㎡ units traded last month for 2.8 to 3.09 billion KRW. The exclusive 84㎡ unit of ‘Raemian Dogok County,’ moved in 2013, changed hands for 2.97 billion KRW last month.
‘The H Bangbae (Bangbae 5 District)’ in Bangbae-dong, Seocho-gu, scheduled for sale next month, was set at 64.97 million KRW per 3.3㎡. Similarly, the price for an exclusive 84㎡ unit is expected to be around 2.2 billion KRW, while the nearby ‘Bangbae Grangjai,’ moved in 2021, was traded last month for 2.6 billion KRW for an exclusive 84㎡ unit. A market value gain of at least 400 million KRW is possible.
Will High-Point Holders Flock to Banpo?
Industry insiders expect that although Gangnam reconstruction complexes will be sold at similar price levels, the large differences in market value gains will cause subscription demand to concentrate on complexes like Banpo, where market value gains are significant. Park Jimin, head of Wolyong Subscription Research Institute, said, “The reconstruction complexes supplied in Banpo and Bangbae have similar sale prices in the 60 million KRW range, but the expected market value gains differ by more than 1 billion KRW. As high-point subscription account holders waiting for Gangnam subscriptions flock to Banpo, there is a high possibility of recording high subscription competition rates and point cut-off lines.” He added, “The competition rate for complexes in Bangbae may relatively decrease, so for real demand buyers wanting to enter the Gangnam area, targeting those complexes could be a strategic move.”
In this regard, questions have been raised about whether the sale price of The H Bangbae was set somewhat high considering market value gains and location. The sale price of The H Bangbae was estimated to be at least 50 million KRW per 3.3㎡ last year. The actual sale price increased by about 15 million KRW compared to that. In the past, there was a precedent where Bangbae Grangjai, sold in 2019, failed to sell out after being supplied at 1.73 billion KRW, which was 130 million KRW higher than the market price (1.6 billion KRW) at the time of sale.
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