Two apartment complexes in Seoul's Gangnam area that are subject to the presale price cap are set to begin sales. The complexes, slated for presale in Yeoksam-dong, Gangnam-gu, and Seocho-dong, Seocho-gu, are expected to be offered at prices more than 1 billion won below nearby complexes. As a result, the market expects that tens of thousands of cash-ready applicants will rush in.
According to the presales industry and the Korea Real Estate Board (REB) on the 9th, Yeoksam Central Xi in Gangnam-gu will open special supply on the 15th, followed by first-priority applications on the 16th and second-priority on the 18th. The complex is a reconstruction of the Eunhasu Apartment in Yeoksam-dong. It will be built across lot No. 758 in Yeoksam-dong with four buildings, from three underground floors to up to 17 above ground, totaling 237 units. Move-in is scheduled for Aug. 2028.
General presales range from 59 square meters to 122 square meters of exclusive area, with a total of 87 units. The offering prices are as follows: ▲ exclusive 59㎡ 2,012,000,000 won ▲ exclusive 84㎡A 2,813,000,000 won ▲ exclusive 84㎡B 2,697,000,000 won ▲ exclusive 84㎡C 2,750,000,000 won ▲ exclusive 84㎡D 2,811,000,000 won ▲ exclusive 122㎡ 3,798,000,000 won. For first-priority applications, as of the tenant notice date of Dec. 5, people who have lived in Seoul for at least two years (continuously since before Dec. 5, 2023) will be selected as preliminary candidates at five times the supply (500%) and chosen by score. Gangnam Severance Hospital, Lotte Department Store Gangnam Station branch, and Hanti Station on the Suin-Bundang Line are nearby.
Looking at nearby prices based on the 84㎡ national standard type, a 84.87㎡ unit at Raemian Grayton 2nd was traded on Oct. 23 for 3,480,000,000 won. A 84.99㎡ unit at Yeoksam ePyeonhansesang changed hands on June 2 for 3.2 billion won. That means a price gap of up to 783,000,000 won compared with nearby existing complexes. Park Ji-min, head of Wolyong Subscription Research Institute, said, "Considering the location and presale prices, we expect at least 20,000 to as many as over 30,000 applicants to flock."
Akroad Seocho in Seocho-gu is also nearing presale. A tenant recruitment notice is expected this month. The complex is a reconstruction of the Shindonga Apartment around lot No. 1333 in Seocho-dong and will comprise 1,161 units in buildings from four underground floors to 39 above ground. Move-in is scheduled for Mar. 2029.
All general presale units are exclusive 59㎡, totaling 56 units. The presale price is expected to be set at around 79.4 million won per 3.3㎡. Applying that yields a presale price of 1,980,000,000 won for 59㎡. Noh Si-tae, real estate specialist at KB Kookmin Bank's WM Promotion Division, said, "With good access to Gangnam Station, Gangnam-daero and other Gangnam business districts, and within walking distance to Yangjae Station on Line 3 and Gangnam Station where Line 2 and the Shinbundang Line meet, it will be even more popular among those seeking proximity between home and work."
Nam Hyeok-woo, real estate research fellow at Woori Bank's WM Sales Strategy Division, also said, "It applies a high-end brand (Acro) and, with no long-term lease allocation, offers differentiated product appeal as well as an excellent residential environment in a prime Gangnam location," adding, "In the long term, it will form an apartment cluster with nearby new complexes such as Seocho Gran Xi and Raemian Leaders' One."
Looking at nearby complex prices, a 59.96㎡ (20th floor) unit at Raemian Leaders' One completed a transaction on the 10th of last month for 3,380,000,000 won. A 59.98㎡ (8th floor) unit at Seocho Gran Xi also changed hands on Nov. 1 for 3,450,000,000 won. That means a gap of up to 1,470,000,000 won from the expected presale price.
Meanwhile, among the two complexes, Yeoksam Central Xi allows loans of 400,000,000 won for the 59㎡ type and 200,000,000 won for the 84㎡ and 122㎡ types under government lending regulations. For Akroad Seocho, the loan limit for the 59㎡ type is up to 400,000,000 won. These are the maximum amounts available when converting to a mortgage loan at the time of final payment. However, when paying interim installments, the maximum loan limit does not apply; instead, the loan-to-value (LTV) ratio of 40% for regulated areas is applied.