It’s more expensive than the market price and it’s because of the balance burden
The decline in apartment prices in Seoul has slowed for the 4th week
Due to the burden of preparing the balance in a short period of time and the evaluation that it is more expensive than the market price, recently sold apartment complexes are struggling following receiving a disastrous subscription report card. The post-sale system is a system in which prospective buyers can check and sell the apartment when the apartment construction rate is 60-80% or higher.
According to the Korea Real Estate Agency’s subscription home on the 26th, ‘Mapo The Clash’, a post-sale complex in Ahyeon-dong, Mapo-gu, Seoul, out of 53 general-sale households, more than half (27 households (51%)) failed to sign a contract, and went on to apply for non-priority. Mapo the Clash recorded a double-digit subscription competition rate, but more than half of the volume was uncontracted.
Another post-sale complex, ‘Pyeongchon Centum First’ in Anyang, Gyeonggi Province, also fell short. Initially, the complex was scheduled to be sold in October 2020, but following going through a lot of pain over the general sale price, it was eventually converted to a post-sale. At that time, the upper limit of the sale price proposed by the Housing and Urban Guarantee Corporation (HUG) was 18.1 million won per 3.3㎡, but the final post-sale price was set at 32.11 million won per 3.3㎡. There is an analysis that the high sale price was the cause of the understatement, even though the large construction company, DL E&C and Kolon Global, was in charge of the construction.
The ‘Namcheon Xi’ apartment in Namcheon-dong, Suyeong-gu, Busan, which was in the post-sale, showed double-digit enthusiasm for subscriptions, but the actual general sale contract rate was less than half. According to GS E&C, it is known that the contract rate, including legitimate contracts and preliminary winners, is less than 50% for 116 general pre-sale apartments in Namcheonzai from the 16th to the 19th. It is considered a landmark-class apartment in a representative wealthy village in Busan, but it is analyzed that many people gave up winning the subscription due to the high interest rate and the short period of fundraising due to the nature of post-sale. This atmosphere is the reason why Sangdo Prugio Clavenue in Dongjak-gu, Brighton Yeouido in Yeongdeungpo-gu, and Raemian One Pentas in Seocho-gu, which are regarding to be sold later this year, are contemplating the timing of the sale.
Yoon Ji-hae, head of R114 Research Team, Real Estate R114 said, “It is difficult to raise funds in the current high interest rate environment, and consumers try to postpone decision-making because of the expectation that interest rates will be lower next year and the year following. The situation is bound to be difficult because it is necessary,” he explained.
Meanwhile, the decline in apartment prices in Seoul slowed for four weeks in a row. According to a survey by the Korea Real Estate Agency, apartment prices in Seoul fell 0.31% this week, slowing from -0.74% at the end of last year to -0.67% at the beginning of this month.
Reporter Yoon Soo-kyung
