First-Time Special Supply for 12 Households with Competition Rate of 757.6 to 1
Exclusive 59㎡ Up to 2 Billion KRW...No Obligation for Actual Residence
About 20,000 people flocked to the special supply of 'Cheongdam Le El' in Cheongdam-dong, Gangnam-gu, Seoul, where a capital gain of approximately 1 billion KRW is expected. Despite the average sale price of 72.09 million KRW per 3.3㎡ being the highest among complexes subject to the price ceiling system, the competitiveness of its location by the Han River and near Cheongdam Station on Line 7 was evaluated as a key factor.
According to the Korea Real Estate Board's subscription website on the 20th, Cheongdam Le El recorded an average competition rate of 313.6 to 1, with 20,070 applicants competing for 64 units in the special supply subscription held the previous day.
By category, the special supply for first-time homebuyers, which allocated 12 units, attracted a whopping 9,091 applicants, resulting in a competition rate of 757.6 to 1. The special supplies for newlyweds (25 units) and multi-child families (12 units) drew 6,240 and 4,320 applicants respectively, with competition rates of 249.6 to 1 for newlyweds and 360 to 1 for multi-child families. The special supply for elderly parent support also showed a high competition rate of 123 to 1, with 369 applicants for 3 units.
The attractive location and potential for capital gains led to the subscription success despite the high sale price. Cheongdam Le El, a reconstruction of Cheongdam Samik Apartment, is being developed along the Han River with 9 buildings ranging from 4 basement floors to 35 above-ground floors, totaling 1,261 units (including rental), with exclusive areas ranging from 49 to 218㎡. It is located near Cheongdam Station on Line 7 and also close to Bongeunsa Station on Line 9.
The sale price for the highest floor is over 2 billion KRW for a 59㎡ unit and around 2.5 billion KRW for an 84㎡ unit. However, compared to surrounding complexes, it is about 1 billion KRW lower. For example, the nearby Cheongdam Xi, completed in 2011, saw its 82㎡ unit traded at a record high of 3.29 billion KRW in June. The 49㎡ unit was registered at the highest price of 2.13 billion KRW in April. In this context, Cheongdam Le El is considered to have higher future value due to being newly built and having a larger complex size.
However, since the scheduled move-in date is November next year, the payment periods for the deposit, interim payments, and balance are approaching soon, and the amounts are significant. The deposit is 20%, and the interim payments of 30% each are due twice, in December this year and April next year. There is no obligation for actual residence. The upcoming subscription schedule includes the first priority for the relevant area on this day, first priority for other areas on the 23rd, and second priority on the 24th. The announcement of winners is scheduled for the 30th of this month, and the official contract period will be held over three days from the 14th to the 16th of next month.
Ham Young-jin, head of the Real Estate Research Lab at Woori Bank, said, "There are not many new supplies in Cheongdam-dong, and there are positive factors such as the underground complex development of Yeongdong-daero nearby and the opening of the GTX Samsung Station in the metropolitan area." He added, "The location is so excellent that the general supply subscription is also expected to perform well."
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