The popularity of The Penthouse units in reconstructed apartments is soaring. At Eunma Apartment in Gangnam-gu, Seoul, where the reconstruction project has recently gained speed, there is substantial demand for The Penthouse units with estimated member contributions approaching as high as 10 billion won. As the preference for a "smart single home" has strengthened and the scarcity of The Penthouse has been added, demand appears to be converging despite the hefty contributions.
According to the maintenance industry on the 21st, the Eunma Apartment reconstruction association recently shared the "results of the member unit size survey" with its members. It was reported that 12 members of the Eunma Apartment (excluding retail) selected an exclusive 286 square meters (115 pyeong).
If receiving the 115-pyeong The Penthouse, the estimated contribution for current owners of an exclusive 84 square meters (34 pyeong) is 9.45 billion won. Members who own an exclusive 76 square meters (31 pyeong) must pay a contribution of 9.73 billion won.
Fifty members applied for the exclusive 143 square meters (57 pyeong), categorized as a junior penthouse. Their estimated contributions are 3.74 billion won and 3.45 billion won for the 31-pyeong and 34-pyeong baselines, respectively.
Even aside from The Penthouse, there was a clear preference for larger apartments of 34 pyeong or more, considered the "national standard size." A total of 1,473 members chose 34 pyeong, accounting for about 33% of the total. ▲ Exclusive 96 square meters (38 pyeong), 735 people ▲ Exclusive 109 square meters (44 pyeong), 642 people ▲ Exclusive 118 square meters (47 pyeong), 216 people ▲ Exclusive 128 square meters (51 pyeong), 305 people, and so on.
Competition to secure The Penthouse units was fierce not only at Eunma Apartment but also at other reconstruction business sites. In a recent survey on preferred unit sizes among members at Apgujeong District 2, 13 people vied for the 300 square meters (125 pyeong) unit, which is The Penthouse. The sale price of this The Penthouse is estimated to reach about 21 billion won.
A member who owns the largest unit in Apgujeong District 2, the Shinhyundai Phase 11 exclusive 183 square meters (76 pyeong), would have to pay an estimated contribution of 16.6 billion won to be allocated this The Penthouse. Twenty-four members prefer the exclusive 222 square meters (91 pyeong) junior penthouse, and their estimated contributions start in the 7 billion won range.
As demand for The Penthouse grows, some members in reconstruction business sites in the Gangnam area are reportedly suggesting designating The Penthouse units as reserved stock and selling them later for the overall benefit of the association.
The Penthouse is popular because of its scarcity. The Penthouse units in Seoul's Gangnam area continue to be traded mainly by ultra-high-net-worth individuals who are not constrained by lending regulations. In recent years, record-high transactions for The Penthouse have been repeatedly occurring.
Kim Hyo-seon, chief real estate specialist at NH Nonghyup Bank, said, "High-asset individuals look comprehensively at residential use along with asset growth, inheritance and gifting, and retirement planning," and added, "The Penthouse in Daechi-dong or Apgujeong is among the top 0.1% in scarcity even within Seoul. They judge that even if they pay contributions of more than 10 billion won, the value will be higher 10 to 20 years later."
Kim, the chief specialist, analyzed, "As The Penthouse is the smartest of the 'smart single home' options, it appears that those with sufficient asset capacity are applying," and said, "With new apartments in downtown Seoul becoming scarce, the judgment that there are no substitute dwellings also seems to have influenced the preference for The Penthouse."