Seoul Is Seoul... Even with Nth-Hand Arbitrary Supply, It Doesn't Sell

Seodaemun Central I-Park Voluntary Supply Phase 5 Underway
"Must Meet Accessibility, Scalability, and Large Complex Advantages"

Even in Seoul, where a favorable atmosphere for housing sales is prevailing, the success or failure of sales is divided according to the discerning selection by actual buyers. In particular, in non-Gangnam areas, it is difficult to clear unsold units through multiple rounds of discretionary supply unless the location, sale price, and other various conditions are met.

'Seodaemun Central I-Park' perspective / Image provided by HDC Hyundai Development Company

According to the Korea Real Estate Agency's subscription homepage on the 1st, 'Seodaemun Central I-Park' announced the results of the 5th round of discretionary supply subscription winners the day before. This complex, redeveloping Hongun 13 District in Hongun-dong, Seodaemun-gu, consists of 12 buildings ranging from 3 basement floors to a maximum of 15 floors above ground, with exclusive areas of 49 to 84㎡, totaling 827 households, of which 409 are general sale units. Move-in is scheduled for June 2025.

Although it is a branded apartment built by HDC Hyundai Development Company, it is not easy to clear the remaining units. The competition rate by housing type in the five rounds of discretionary supply conducted from July to recently mostly showed double digits. However, since this has not fully translated into contracts, there is speculation that several more rounds of discretionary supply may be conducted.

For the exclusive 59㎡A type, the remaining units in the 5th round were 14 households. Only 7 to 10 households per round proceeded to contract, with 35 households sold from the initial 49 units by the 4th round. The situation is worse for other housing types. For the exclusive 75㎡ type, only 3 out of 7 remaining units were sold during four rounds of discretionary supply. For the exclusive 84㎡F type, only 1 out of 3 units was contracted before the 5th round of discretionary supply.

It takes about a 30-minute walk to Hongje Station on Subway Line 3, and the nearby Bukhansan and Inwangsan mountains create slopes, which are considered disadvantages. There are also not many academies nearby. The sale price for the exclusive 84㎡ was around 1 to 1.1 billion KRW, which sparked controversy over high prices at the time of sale in late May this year.

Ham Young-jin, head of the Real Estate Research Lab at Woori Bank, said, "Because the mountains are close, there are limitations in terms of accessibility and expansion potential such as area development. Although it is not new construction, Bukhansan The Sharp (moved in 2017) on the main road with exclusive 84㎡ units was traded for 1.187 billion KRW in August. From the buyer's perspective, accessibility and other factors may cause hesitation."

There are complexes that have conducted more than 10 rounds of discretionary supply. 'Namguro Station Dongil Centasia' in Garibong-dong, Guro-gu, has continued discretionary supply since last year and conducted up to the 14th round in August this year. This complex, a small-scale reconstruction of Daehung Yeonrip, consists of 3 buildings from 2 basement floors to 7 floors above ground, with 162 households, making it small in scale. 'Hwagok The Live Sky' mixed-use complex in Hwagok-dong, Gangseo-gu, which recruited buyers through 17 rounds of discretionary supply until July this year, consists of 1 building from 3 basement floors to 13 floors above ground, with 140 households in total. Experts say that it is difficult to enjoy the advantages of large complexes such as landscaping, community facilities, and reduced management fees, so preference inevitably falls.

An industry insider said, "In 'Imun I-Park Xi' in Imun-dong, Dongdaemun-gu, over 100 unsold units occurred only in the 3rd complex, which is far from the subway station," adding, "Even newly built complexes under the same Seoul sky ultimately have their performance determined by location and future value."