Despite 3 Billion Won Price Tag, Dongjak-gu Apartment Subscriptions Soar... Summit The Hill 32:1, Acro River Sky 19:1 [Real Estate AtoZ]

Newly Built Riverside Apartments Exempt from Price Cap
Thousands Rush to Apply for Subscriptions

Despite controversies over sales prices that rival those in Gangnam, redevelopment complexes in Heukseok-dong and Noryangjin in Dongjak-gu, Seoul, recorded double-digit competition rates in the first-round subscription. Although the sales price for an exclusive 84㎡ unit approached 3 billion won, surpassing even the capped pricing found in Gangnam, a rush of prospective buyers was attributed to the prime location along the Han River and the scarcity of newly built apartments in Seoul.

Aerial view of 'Summit The Hill' in Heukseok-dong, Dongjak-gu, Seoul. Daewoo E&C

According to data from Korea Real Estate Board’s Cheongyak Home as of May 28, Summit The Hill (Heukseok District 11) in Heukseok-dong, Dongjak-gu recorded a subscription competition rate of 32.5 to 1, while Acro River Sky (Noryangjin District 8) in Daebang-dong posted a rate of 19.8 to 1 in the first-round subscription held the previous day. Despite the fact that the winner announcement date for both complexes is set for June 5, making duplicate applications impossible, a large number of buyers flocked to each project.

For the general sale of Summit The Hill, built by Daewoo E&C, 6,860 applicants vied for 211 units. For the 84㎡C type, 78 people applied for just one unit. The 59㎡B type received 242 applications for four units, resulting in a 60.5 to 1 competition rate. Similarly, the 84㎡A type saw a 60.3 to 1 rate, and the 39㎡A type had a 57.0 to 1 rate, reflecting strong demand across the board.

At Acro River Sky, constructed by DL E&C, 2,611 applicants competed for 132 units. The most competitive unit type was the 44㎡ exclusive type, for which 307 people applied for four available units, marking a 76.8 to 1 competition rate. The 51㎡C type followed at 62.2 to 1, and the 59㎡A type at 57.7 to 1. The contract signing periods are set for June 16-18 for Summit The Hill and June 20-24 for Acro River Sky, respectively.

Aperspective rendering of 'Acro River Sky' in Daebang-dong, Dongjak-gu, Seoul. DL E&C

Both complexes faced controversy over high sales prices even before the subscription process began. The highest sales price for an exclusive 84㎡ unit at Summit The Hill is set at 2,978,200,000 won, and for the 59㎡ unit, 2,247,000,000 won. This surpassed the previous record of 2,811,000,000 won for an 84㎡ unit at Yeoksam Central Xi in Yeoksam-dong, Gangnam-gu. The maximum sales price for an 84㎡ unit at Acro River Sky was also set at 2,795,800,000 won.

The reason new apartments in Dongjak-gu are more expensive than those in Gangnam lies in the different regulations on sales prices. The government restricts sales prices in the three Gangnam districts (Gangnam, Seocho, Songpa) and Yongsan-gu—where the price cap system is enforced—to 30-40% below surrounding market prices. In contrast, Dongjak-gu is exempt from this price cap, allowing sales prices to be set at market levels, reflecting increases in construction costs. Industry insiders believe that, despite concerns over high prices, the shortage of new apartment supply in Seoul and the status of Heukseok and Noryangjin as riverside redevelopment zones have fueled strong subscription demand.

However, there are growing concerns that the tightened loan regulations, which require more than 2.5 billion won in cash for successful applicants, have effectively narrowed the subscription market to high-asset individuals. Interim payment loans are limited to 40% of the sales price, and for unit types like the 84㎡, where the price exceeds 2.5 billion won, the final payment loan cap is just 200 million won. As a result, regardless of subscription eligibility, a substantial amount of cash is needed to complete the transaction.

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