Jamsil Miseong Clover Reconstruction to Offer 216 Units for General Sale
Sale Price Review Scheduled for Next Month, 1 Billion Won Profit Expected for Standard Units
Internal Disputes Over Floor Plan Changes Remain a Key Variable
The 'Jamsil Le El', a reconstruction project of Jamsil Miseong Clover, will begin general sales next month. The sale price is expected to be in the 60 million won range per 3.3 square meters (one pyeong).
According to the maintenance industry on July 23, the 'Miseong Clover Reconstruction Association' submitted a sale price review application to Songpa-gu on July 8. The review committee is expected to convene next month after reviewing the documents. The association anticipates that if the procedures proceed without delay, general sales will begin next month. Jamsil Miseong Clover is located in Songpa-gu, an area subject to the sale price ceiling system, and must undergo a sale price review.
The association hopes for a general sale price in the 65 million won range per 3.3 square meters, but it is expected to be set lower than this. This is more than 5 million won higher than the nearby 'Jamsil Raemian I-Park', where the sale price per 3.3 square meters was in the 54.09 million won range. The association recently received a land appraisal, and the land price was in the 36 million won range per 3.3 square meters, which is higher than that of Raemian I-Park.
An association official explained, "The officially assessed land value increased by about 5% compared to the previous year, and the land cost was set higher than that of nearby complexes." The sale price for projects subject to the sale price ceiling system is determined by adding the land cost and construction cost, plus additional charges.
Jamsil Le El is called the last 'lotto subscription' of the year. If successful in the subscription, a profit of over 1 billion won is expected for a 30-pyeong unit. An association official said, "The market price for a 30-pyeong unit is in the 3.6 billion won range, but the general sale price will be set at a minimum of around 1.8 billion won, which is about half the market price for move-in rights," adding, "There are many royal floor units among the 30-pyeong units, so there will be high demand."
For move-in rights, a 59-square-meter exclusive unit was traded at 2,684.78 million won in March, and an 84-square-meter unit was traded at 3,340.3 million won in May. The asking prices for move-in rights are 2.8 to 3 billion won for 59 square meters, 3.6 to 3.8 billion won for 84 square meters, and 4.3 to 4.5 billion won for 104 square meters. Of the 1,865 total units, 216 will be available for general sale.
Internal conflict within the association remains a variable. Association members have demanded restoration, claiming that the constructed complex differs from the plans they were shown.
They attempted to hold a general meeting to dismiss the association president on July 19. However, the meeting was canceled after the court accepted the association's request for an injunction to prohibit the meeting.
Lotte Construction sent an official letter to the association on July 15, stating, "If the general sale schedule is delayed and the timing for securing funds for repayment of the Housing and Urban Guarantee Corporation (HUG) project loan and payment of construction costs becomes delayed or uncertain, we are considering suspending construction. The association will be responsible for any consequences arising from suspension of construction."
In response, association members countered, "This appears to be an act of intimidation aimed at preventing certain members from exercising their rights and expressing legitimate opinions, which may constitute criminal intimidation and obstruction of business under criminal law. If the contractor continues to repeat statements about construction delays and attempts to neutralize members' objections, it would constitute a breach of contractual obligations as a contractor, and we will consider not only contractual liability but also civil and criminal legal action."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
