"New 84m2 Apartments in Seoul Priced at 900 Million Won"... Where Are This Year's Remaining 'Lotto Cheongyak' Price Ceiling Complexes? [Practical Investment]

15,244 Price-Ceiling Units Ready by Year-End
Explosive Interest in 'Safety Margin' at 60-70% of Market Price

The average sales price of apartments in Seoul has surpassed 1.3 billion won, and for the first time, the top 20% of apartments have exceeded 3 billion won. In high-priced redevelopment complexes in areas such as Yeouido and Gangnam that have come up for court auction, there have even been successful bids above the prevailing market price. Rising construction costs are further increasing the burden of pre-sale prices. As price thresholds rise, end-users without homes are turning their attention to apartments subject to the price ceiling system, which are available at prices lower than the market rate.

According to an analysis by the real estate research firm RealToday of Korea Real Estate Board's Cheongyak Home data on June 4, a total of 151,472 people applied for 8,044 units in general sales of apartments subject to the price ceiling system from the beginning of this year until May 26, resulting in an average competition rate of 18.83 to 1. Compared to the competition rate of 4.25 to 1 for non-price-ceiling apartments during the same period, competition is more than four times fiercer.

With continued enthusiasm for applications to price-ceiling complexes, there is growing interest among buyers in identifying the remaining available units in advance. According to the real estate market analysis firm Real Estate Info, from this month until the end of the year, a total of 23 complexes subject to the price ceiling system, comprising 19,700 units, are scheduled for pre-sale in the Seoul metropolitan area, including Seoul, Incheon, and Gyeonggi Province. Of these, 15,244 units will be offered for general sale.

The price ceiling system sets an upper limit on the price at which apartments and similar properties can be sold, as determined by the government. The aim is to curb rising home prices and reduce the burden on end-users without homes. The system applies to certain private and public land development districts in the Seoul metropolitan area, including the three districts of Gangnam, Yongsan District, and Gwacheon City in Gyeonggi Province. Pre-sale prices are set at around 60% to 70% of the surrounding market price. A representative from Real Estate Info stated, "In Gyeonggi and Incheon, the competition rate for apartment applications is more than five times higher than for general complexes," and added, "As pre-sale prices soar, buyers are increasingly interested in apartments with price competitiveness that offer a 'safety margin.'"

Prime Complexes in Seoul, Including Godeokgangil, to Go on Sale

In Seoul, 936 units (for general sale) will be supplied across six complexes in Gangdong, Seocho, and Gangnam districts. Among these, 'Godeokgangil Daeseong Verhill' (613 units), which begins accepting first-priority applications on this day, is the first 'Daeseong Verhill' brand complex in Seoul by DS General Construction. This is the last privately sold supply in the Godeokgangil district.

The pre-sale price for an 84-square-meter exclusive unit (maximum 984 million won) is just under 1 billion won. The 101-square-meter exclusive unit is priced at 1.12 billion won. The average pre-sale price per 3.3 square meters is about 28.84 million won, which is 27% lower than the Gangdong district average of 39.38 million won. This rare opportunity for a reasonably priced apartment in Seoul is drawing significant attention from buyers. Over the past month, 72,887 people searched for this complex using the comprehensive apartment information application Hogangnono. In the third week of last month (May 19-25), when the resident recruitment notice was posted, and in the following week (May 26-June 1), 29,468 and 37,198 people, respectively, searched for the complex, ranking it number one nationwide for two consecutive weeks in terms of visitors.

In October this year, 78 units (44-170 square meters) will be offered in the Seocho District through the Shinbanpo 21st Reconstruction Project, and in December, 70 units will be supplied through the Namseoul General Market redevelopment project in Gangnam District. Raemian Triniwon in Seocho (505 units, 59 and 84 square meters), Acro de Seocho (88 units, 59-170 square meters), and Xi The Carrot 141 in Gangnam (87 units, 59-110 square meters) are also scheduled for pre-sale within the year. An industry insider commented, "Although most price-ceiling complexes in Seoul are concentrated in high-priced areas, from the perspective of end-users, they are still the least expensive options available."

Large-scale Supply in Incheon and Gyeonggi... Over 13,800 Units Planned

In Incheon, there will also be a significant number of units for sale. Six complexes subject to the price ceiling system will supply 6,133 units. Of these, four complexes will each supply more than 1,000 units. In July, all 1,010 units of the AA24 Block Jungheung S-Class in Geomdan New Town, constructed by Saesol Construction of Jungheung Construction Group, will be offered for general sale. The complex is located right next to Incheon Subway Line 1. Daebang Construction’s Incheon Yeongjong 1st Daebang Dietre (1,021 units), scheduled for pre-sale in August, and Geomdan Jungheung S-Class (1,398 units), scheduled for December, will also be fully available for general sale.

In Gyeonggi Province, which has the largest population in the country, 7,670 units in 10 complexes subject to the price ceiling system will be supplied. In June alone, three complexes will be offered: Osan Segyo Athera (433 units, 59 square meters), Suwon Dangsu District C3 and D3 Blocks (1,149 units, 74-112 square meters), and Yangju Hoecheon District A10-1 Block (845 units, 72-84 square meters). Osan Segyo Athera, built by Kumho Construction, is the first and last privately participated public pre-sale apartment in Segyo 2 District. It consists of six buildings with two basement levels and 25 above-ground floors, and a total of 433 units with an exclusive area of 59 square meters. Of these, 75% will be supplied through special allocations for newlyweds and first-time homebuyers.