"Apartment Reserve Land Prices Soar to Twice the Sale Price"

Photo by Moon Honam munonam@

[Asia Economy Reporter Yuri Kim] As Seoul housing prices expand their upward trend again, reserved lots priced at market levels are appearing one after another. With housing prices soaring within 2 to 3 years after general sales, the minimum bid price for reserved lots reaches twice the original sale price.

According to the redevelopment industry on the 23rd, the housing redevelopment association of Gajaeul New Town District 5 in Seodaemun-gu, Seoul (Raemian Lucentia) is conducting bids for three remaining reserved lots until the afternoon of the same day. There is one 59㎡ unit and two 84㎡ units, with minimum bid prices of 1.065 billion KRW and 1.275 billion to 1.375 billion KRW respectively. The 84㎡ unit in this complex was actually traded for 1.3 billion KRW in July. The current asking price is around 1.3 to 1.4 billion KRW.

Reserved lots are properties that reconstruction or redevelopment associations hold back without selling in preparation for future changes in the number of association members or lawsuits. Since no subscription savings account is required, they are usually sold at prices slightly lower than market value. However, in this complex, the minimum bid price is set at market level. It is twice the general sale price at the time of sale in 2017. The sale price at that time was 533 million to 649 million KRW for the 84㎡ units.

The redevelopment association of Eungam 1 District in Eunpyeong-gu (Hillstate Nokbeon Station) is also conducting bids for four reserved lots on the 28th. All four units are 84㎡ with a minimum bid price of 1.155 billion KRW each. The 84㎡ units in this complex were traded for 1.155 billion KRW in September, and are currently listed around 1.3 billion KRW. This is also about twice the original sale price of 582.3 million to 713.7 million KRW.

The redevelopment association of Sinjeong 2 Redevelopment Promotion District 1 in Yangcheon-gu (Raemian Mokdong Adelice) has put up four reserved lots including a rare 116㎡ mid-to-large unit. There is one 59㎡ unit, two 84㎡ units, and one 116㎡ unit. The minimum bid prices are 1.2 billion KRW for the 59㎡, 1.5 billion KRW each for the 84㎡ units, and 1.7 billion KRW for the 116㎡ unit. The sale prices for this complex ranged from 719 million to 936 million KRW for the 84㎡ units. The actual transaction price for the 84㎡ unit last month was 1.595 billion KRW. The current asking price is between 1.6 and 1.7 billion KRW.

Industry insiders see that the continued preference for new apartments, soaring jeonse (long-term deposit lease) prices, shortage of listings, and the recent renewed movement in housing prices have led each association to put reserved lots on the market at market prices. In fact, the 84㎡ unit in Raemian Lucentia was leased at 680 million KRW, already surpassing the original sale price.

This content was produced with the assistance of AI translation services.