"An Apartment in Eunpyeong-gu for 1.37 Billion Won? Called Overpriced, But Sells Out in Four Months" [Real Estate AtoZ]

GTX-A Line Boost and Supply Concerns Spark Turnaround
All 108 Unsold Units Taken Up
Strong Demand Despite High Prices and Low-Floor Offerings
"Renewed Confidence in Seoul New Construction"

Hillstate Mediale in Eunpyeong-gu, Seoul, which was embroiled in controversy over its high presale prices, has sold out completely just four months after its launch, once again proving the so-called "Seoul New Construction Never Fails" rule. Despite unfavorable conditions such as prices that were 200 million to 300 million won higher than the surrounding market and general sales units being mostly on lower floors, the combination of positive factors like the GTX-A metropolitan express railway line and strong demand for new construction in Seoul contributed to this outcome.

Hillstate Mediale Two-sided. Hyundai Construction.

According to the real estate industry on September 24, Hillstate Mediale, located in the Daejo-dong area of Eunpyeong-gu, achieved a 100% contract rate by selling out all remaining units in a recent open lottery. When sales began in May, the complex recorded a first-round subscription competition rate of 11 to 1 on average. However, due to the controversy over high presale prices, many successful applicants declined to sign contracts, resulting in 108 out of 483 general sales units (51, 59, and 74 square meters) being offered in an open lottery.

The presale price for the 74-square-meter units was set between 1.27 billion and 1.37 billion won, which was about 200 million to 300 million won higher than nearby apartments. At around 45 million won per pyeong, this marked the highest presale price ever in Eunpyeong-gu. In addition, all 74-square-meter general sales units were located on the third floor or below, and there were concerns about poor sunlight conditions. Nevertheless, as the unsold units were gradually taken up, the complex achieved a complete sell-out within four months. Compared to "Gocheok Prugio Hillstate," which sold out in just over two months during the same period, it took longer, but many believe that the transportation advantage of being near Yeonsinnae Station on the GTX-A line played a decisive role.

The heated atmosphere of the Seoul real estate market also contributed to the sell-out. Recently, record-high transaction prices have been reported, especially in apartments along the Hangang Belt, fueling anxiety among buyers that "if I don't buy now, prices will rise even further." The outlook for a "Seoul supply cliff" starting in earnest next year has also stimulated demand for new constructions. According to Hana Securities, 54% of apartments in Seoul are over 20 years old. Apartments older than 30 years account for 22%, while those between 20 and 30 years old make up 32%. In 2015, the proportion of apartments over 20 years old was just 36%, but with delays in new supply, this figure has increased by nearly 20 percentage points.

Experts say this case once again confirms the "Seoul New Construction Never Fails" phenomenon. Park Wongap, Chief Real Estate Specialist at KB Kookmin Bank, commented, "Despite the controversy over high presale prices, everyone knows that future supply in Seoul will be extremely limited, which has led to a sense of urgency to buy now, resulting in a complete sell-out. This once again proves the market's strong confidence in new construction in Seoul."