Resale Restrictions Lifted: "1 Billion KRW Premiums" Heat Up Sale Rights in Mapo and Seongdong [Real Estate AtoZ]

Mapo Xi Hillstate Rachel's 84㎡ Sale Right Traded at 2.7 Billion KRW Range
Lacervo Prugio Summit in Seongdong: 800 Million KRW Pre-sale Price Now Sold for 1.5 Billion KRW
"High Pre-sale Price" Complexes in the Hangang Belt Align with Market Surge
This Year, Seongdong Up 12%, Mapo Up 9%... Seoul's Average Pre-sale Price Also Rises 8.6%

It has been confirmed that the sale rights of new apartment complexes, which competed for the title of "the highest pre-sale price in northern Seoul" last year, have been traded with premiums exceeding 1 billion KRW (approximately 10 billion KRW). As housing prices in the "Hangang Belt" areas such as Mapo-gu and Seongdong-gu have surged this year, the prices of sale rights also quickly began to align upward as soon as the resale restrictions were lifted.

Mapo Xi Hillstate Rachel's Perspective. GS Engineering & Construction.

According to the Actual Transaction Price Disclosure System of the Ministry of Land, Infrastructure and Transport on October 11, the sale right for an 84-square-meter D-type unit (8th floor) at "Mapo Xi Hillstate Rachel's" in Gongdeok-dong, Mapo-gu, was traded last month for 2,733.93 million KRW. This is about 1.02 billion KRW (60%) higher than the original pre-sale price of 1,710.5 million KRW. The gap with the highest actual transaction price for an 84-square-meter unit at "Mapo Prestige Xi," currently considered the top apartment in Mapo-gu (2,820 million KRW), is now only about 100 million KRW.

The premium for "Lacervo Prugio Summit" in Haengdang-dong, Seongdong-gu, also exceeded 600 million KRW. The sale right for a 59-square-meter B-type unit (4th floor) was traded last month for 2,050 million KRW, up about 640 million KRW (45%) from the pre-sale price of 1,410.4 million KRW. This surpasses the price of "Seoul Forest Riverview Xi" (59 square meters, 2,000 million KRW), the highest-priced complex in Haengdang-dong. Around the same period, the sale right for a 45-square-meter unit (8th floor) also changed hands at 1,500 million KRW, which is 70% higher than its pre-sale price of 885.8 million KRW.

These complexes were launched in the second half of last year. With the recent lifting of resale restrictions, listings have started to appear in earnest. Mapo Xi Hillstate Rachel's held its subscription in July last year, while Lacervo Prugio Summit did so in September of the same year. In Seoul, except for some regulated areas such as the three Gangnam districts and Yongsan-gu, the resale restriction period is one year. Mapo-gu and Seongdong-gu, where these two complexes are located, are also subject to this rule.

Lacervo Prugio Summit Tushido. Daewoo E&C.

At the time of subscription, both complexes drew attention as competitors for the highest pre-sale price in northern Seoul. The average pre-sale price for general units at Mapo Xi Hillstate Rachel's was set at 51.5 million KRW per 3.3 square meters, while Lacervo Prugio Summit was set at 52.3 million KRW per 3.3 square meters. Due to these high prices, there was controversy over the high pre-sale pricing. However, the lack of new developments in nearby areas and the short resale restriction period attracted investment demand. The average competition rate for first-priority subscriptions was 164 to 1 and 241 to 1, respectively.

The market atmosphere has changed completely in just one year. Expectations of interest rate cuts, a supply shortage, rising pre-sale prices, and the sharp increase in market prices in Mapo-gu and Seongdong-gu have all combined to re-evaluate the "high pre-sale prices" as "reasonable pre-sale prices." According to the Housing and Urban Guarantee Corporation (HUG), as of August this year, the average pre-sale price for private apartments in Seoul was 46.84 million KRW per 3.3 square meters, an 8.6% increase compared to the same period last year. Since the beginning of this year, apartment prices in Seongdong-gu have risen by 12.03%, and in Mapo-gu by 9.37%, ranking among the highest in the country.

Meanwhile, there were a total of 79 transactions of apartment sale and move-in rights in Seoul last month. The transaction volume had been declining, with 139 cases in June, 87 in July, and 66 in August, but slightly rebounded in September. By district, Seongbuk-gu and Seongdong-gu had the most transactions, with 14 each. Seodaemun-gu (11 cases) and Mapo-gu (10 cases) followed. The highest transaction price was for the move-in right for an 84-square-meter unit at "Cheongdam Le El" in Cheongdam-dong, Gangnam-gu, which was traded for 6,150 million KRW, about 3.7 billion KRW higher than the pre-sale price (2,398.2 million to 2,486 million KRW).