Outlook for 22 Households General Sale by End of Next Year
Prime Gangnam Location, Permanent Han River View
Surpassing Record High Price of 'Posez Hangang'
The highest-priced general sale units in history will be released in Gangnam-gu, Seoul. The Cheongdam-dong Geonyeong Apartment remodeling association is reportedly setting the sale price at 120 million KRW per 3.3㎡ (pyeong). As it is a remodeled apartment built as a premium complex with a permanent Han River view, there is also a possibility that it will set the highest sale price ever depending on the floor level.
Cheongdam Renaissance, Gangnam-gu, Seoul. Provided by Cheongdam Geonyeong Apartment Remodeling Association
According to the industry on the 14th, members of the remodeling project association for ‘Cheongdam Geonyeong Apartment’ in Cheongdam-dong, Gangnam-gu, will complete relocation as early as the 22nd of next month. The association plans to start construction between May and June next year and proceed with sales by the end of the same year. They are considering setting the sale price at around 120 million KRW per pyeong.
This price approaches the highest ever recorded. The current highest sale price was seen at ‘Posez Hangang’ in Gwangjang-dong, Gwangjin-gu, Seoul, supplied at 115 million to 137.7 million KRW per pyeong. Just as Posez Hangang had significant price differences depending on the floor, Cheongdam Geonyeong’s prices may also vary by floor. Moreover, since there is still plenty of time until the sales period and considering the prime Gangnam location and the premium of a permanent Han River view, the sale price could surpass the highest ever recorded.
The Cheongdam Geonyeong remodeling apartment far exceeds the sale price of ‘Cheongdam Le El’ (Cheongdam Samik reconstruction, 72.09 million KRW), which was recently sold in Cheongdam-dong. Cheongdam Le El was subject to the sale price ceiling system, but Cheongdam Geonyeong is not. Although Cheongdam Geonyeong is located in Gangnam-gu, it is exempt from the sale price ceiling system because the general sale units are fewer than 30 households.
Jung Bong-gyun, head of the Cheongdam Geonyeong remodeling association, explained, "The general sale units will be constructed as separate buildings, making them almost like new constructions, and especially the permanent Han River view adds significant value." He added, "We also considered that newly built apartments along the Han River have already surpassed 100 million KRW per pyeong in sale price."
Cheongdam Geonyeong holds the record for the highest construction cost and contribution fees among remodeling complexes in Seoul. In April, the association agreed with the construction company GS Engineering & Construction to increase the construction cost from 6.87 million KRW to 11.37 million KRW per pyeong. The average contribution fee per member is about 570 million KRW, breaking the previous record for remodeling maintenance projects (about 400 million KRW at Gaepo The Sharp Tree in Gangnam-gu, Seoul).
Cheongdam Geonyeong was completed in 1994 and has reached 30 years since occupancy this year. Currently, it consists of 240 households in two basement floors to 19 floors above ground. After horizontal extension remodeling, it will transform into two buildings with five basement floors to 20 floors above ground, totaling 262 households. Among these, 22 units will be available for general sale. The existing single exclusive area of 84㎡ (about 25 pyeong) will be expanded to medium-large units of 109㎡ (about 33 pyeong).
Experts have expressed concerns that such a sharp rise in sale prices could trigger housing price instability. Ham Young-jin, head of the Real Estate Research Lab at Woori Bank, said, "From the association’s perspective, raising the sale price is inevitable to improve profitability, but given that the first-priority subscription competition rate in Seoul has exceeded 140 to 1, this is not a desirable phenomenon." He explained, "With very high preference for new apartments, this could stimulate prices of older apartments."
Cheongdam Geonyeong is located along the Han River, offering excellent location conditions, and is attracting attention from buyers due to the nearby luxury residential areas such as ‘Eterno Cheongdam,’ known as the ‘IU Apartment.’ Since the existing floor area ratio is high at 397%, making redevelopment less feasible, the project shifted early to remodeling rather than reconstruction. It is also the first remodeling complex constructed by GS Engineering & Construction. Cheongdam Geonyeong began relocation last month and currently has a relocation rate exceeding 60%. The expected move-in period is April to May 2029.
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