Ultra-Luxury Residence Signiel Sees Sharp Decline in Prestige
A Series of Setbacks Including the Jeon Cheongjo Case Lead to a 2 Billion Won Drop in Three Years
While the prices of ultra-high-end residences in Seoul continue to soar, the Lotte World Tower Signiel Residence in Jamsil, Songpa-gu-once called “the most luxurious residence in South Korea”-is showing an exceptional downward trend. As demand for monthly rentals declines, some owners are even leaving their homes vacant and simply paying tens of millions of won in maintenance fees. Although this place was once a symbol of ultra-premium living, recent incidents such as the Jeon Cheongjo case have led to it being associated with a “scammer image,” resulting in a noticeable drop in demand.
Vacant for a Year... Tens of Millions of Won in Maintenance Fees
According to a video released on September 28 by Turbo832, a YouTuber and former accountant, Mr. A, who owns a 181㎡ (type 90A) unit in Signiel, has been unable to find a tenant for a year despite listing the unit for rent since last year. Considering the monthly rent for this apartment is around 17 million won, the lost rental income over the past year exceeds 200 million won. Mr. A is paying 3.2 to 3.3 million won in maintenance fees each month, and since the ventilation system must be operated even when the unit is vacant, the annual maintenance fees amount to 30 to 40 million won.
From ‘Positioning Goods’ to a ‘Scammer Image’
The YouTuber explained about Signiel, "Many streamers and AfreecaTV (now SOOP) BJs live here," and cited the lack of the 'positioning goods' function as the reason for the low demand for monthly rent. Screenshot from the YouTube channel 'Turbo832 TV'
Signiel established itself as a symbol of wealth by recording the highest sale prices in the country, but its image has been shaken in recent years. The YouTuber analyzed, “Signiel was once consumed as a positioning good by the ultra-wealthy, but recently, as more AfreecaTV BJs, streamers, and short-term renters have moved in, the brand value has declined.” Following incidents like the Jeon Cheongjo case-where a person impersonating a chaebol third-generation heir swindled billions of won-various crime and fraud cases have been reported in the media, spreading the perception that “scammers come and go from these homes.”
Actual Transaction Prices Down by Up to 2 Billion Won in Three Years
In fact, Signiel’s market price has dropped by as much as 2 billion won this year. According to the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system, a 190㎡ (146 pyeong) unit was sold for 6.05 billion won (on the 50th floor) in April this year. Compared to a unit of the same size sold for 8 billion won (on the 47th floor) in November 2022, this represents a decrease of 2 billion won. Similarly, a 205㎡ (158 pyeong) unit fell from 7.8 billion won in May 2022 to 6.985 billion won in March this year, a drop of about 1 billion won. The market is now watching to see whether Signiel, once the epitome of luxury living, can restore its high-end reputation.
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