In an Unprecedented Real Estate Ice Age... Even Lee Jae-myung Couldn't Sell His House

A view of Yangji Geumho 1st Complex, Sunae-dong, Bundang-gu, Seongnam-si.

2.4 Billion KRW Apartment in Bundang-gu, Seongnam City

Known for Abundant Benefits and Excellent School District

Listed 100 Million KRW Below Market Price

But Burdened by Mortgage Ban Over 1.5 Billion KRW

[Asia Economy Reporter Kim Min-young] Amid an unprecedented transaction freeze, it has been confirmed that Lee Jae-myung, leader of the Democratic Party of Korea, has yet to sell his apartment located in Sunae-dong, Bundang-gu, Seongnam City. In May, when Lee announced his candidacy for Incheon Gyeyang-eul, he put up his Bundang-gu apartment, where he had lived, for sale at 100 million KRW below the market price at that time. However, the price far exceeds the 1.5 billion KRW threshold that prohibits mortgage loans, and due to the sharp contraction in buying demand caused by interest rate hikes, the apartment has yet to find a buyer.

According to multiple real estate agencies in the Sunae-dong area on the 18th, Lee listed his apartment in Yangji Geumho 1st Complex, Building 1**, 24th floor, with a net area of 164.25㎡, for sale in May following his decision to run in the local elections. The listing is not registered on Naver advertisements, but he has expressed his intention to sell to local agencies in Sunae-dong. The asking price was set at 2.4 billion KRW, 100 million KRW below the market price at that time. Currently, asking prices for similar units in the same complex range between 2.2 billion and 2.5 billion KRW (based on Naver listings).

The Yangji Geumho 1st Complex, where Lee resided, is part of six Yangji Village complexes undergoing integrated reconstruction. It comprises a total of 4,292 households and is located in a prime area adjacent to Sunae Station on the Bundang Line. Right in front of the complex are Lotte Department Store, various commercial establishments, and academies, and it is also reputed within Bundang for its excellent school district.

This year, Bundang-gu saw apartment prices stir as the Yoon Suk-yeol administration announced plans to promote reconstruction in first-generation new towns. According to the weekly apartment trend report by the Korea Real Estate Board, while Sujeong-gu and Jungwon-gu continued to decline, Bundang alone reversed to an upward trend in the sales price index. Even when apartment prices in Seoul Gangnam turned negative, Bundang steadfastly maintained its upward momentum. However, from the fourth week of July (25th), Bundang joined the downward trend, marking a decline after 18 weeks since the third week of March.

Conscious of the reconstruction promotion benefits, the seller has not lowered the price, creating a gap with buyers’ desired prices, resulting in a complete halt in transactions. The 164.25㎡ Yangji Geumho 1st Complex recorded a new high last August with a sale at 2.28 billion KRW (16th floor), up 180 million KRW from the previous transaction in December 2020 (2.1 billion KRW). However, a month later in September 2021, it sold for 2.2 billion KRW (17th floor), and in January this year, it changed hands at 1.945 billion KRW (6th floor), 335 million KRW below the previous high. Since then, there have been no transactions.

A representative from real estate agency A in Sunae-dong said, "When Lee announced his candidacy for the National Assembly election, he expressed his intention to sell to local agencies, but since the price exceeds the 1.5 billion KRW mortgage ban threshold and due to the impact of interest rate hikes, buyers have taken a wait-and-see approach, so no one has come forward to buy yet."

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