Move-in rights for Banpo Raemian Trinione in Seocho District, Seoul, which begins occupancy in August, are changing hands in the 5 billion–7 billion won range. This month, the move-in right for an 84-square-meter exclusive area topped 5 billion won, and the 112-square-meter unit sold in the upper-6-billion-won range. With the completion approval granted on the 23rd, passing the end point for levying the reconstruction excess-profit recovery charge, some say prices could rise further as the burden from the recovery charge eases for deals going forward.
According to the actual transaction price disclosure system of the Ministry of Land, Infrastructure and Transport on the 30th, three transaction cases for Banpo Raemian Trinione move-in rights occurred this month. The transaction prices ranged from 5,042.99 million won to 6,936.69 million won. On the 6th, a 100.43-square-meter exclusive unit sold for 5,881.02 million won, and on the 8th, an 84.96-square-meter exclusive unit changed hands for 5,042.99 million won. On the 10th, a 112.08-square-meter exclusive unit was traded for 6,936.69 million won.
Of eight reported move-in right transaction cases in the past year, three occurred this month. The top prices by size are higher. A 112.4-square-meter exclusive unit sold for 7,429.04 million won on the 20th of last month. The top price for a 100-square-meter exclusive unit was 6,025.52 million won in August last year, and the top price for an 84-square-meter exclusive unit was 5,210 million won in March.
The complex is a reconstruction of Banpo Jugong Complex 1, District 3, built as 17 buildings with three basement levels to a maximum of 35 above-ground floors, totaling 2,091 households. Because the ownership registration for the new apartments has not yet been completed, member allocations are traded in the form of move-in rights. General sale allocations are restricted from resale for three years from the date of the first winner announcement and cannot be traded now.
Prices are lower than nearby Raemian One Bailey. A 101.97-square-meter exclusive unit at One Bailey was traded for 6.9 billion won on the 6th, about 900 million won higher than Trinione's top price for a 100-square-meter exclusive unit. A 116.95-square-meter exclusive unit at One Bailey sold for 9 billion won on the 6th, about 1.6 billion won more expensive than Trinione's top price for a 112-square-meter exclusive unit. While One Bailey, which has many buildings with Han River views, leads in location, some in the market say Trinione could form a similar price range to One Bailey's non–Han River view buildings after move-in.
Some analyses say the price gap between the two complexes was affected by the reconstruction excess-profit recovery system. The system recovers up to 50% of the excess when the average excess profit per member from reconstruction exceeds 80 million won. Projects that applied for management and disposal approval by the end of 2017 were exempt from the charge. One Bailey applied for management and disposal approval in Dec. 2017 and avoided the recovery system, but Trinione, which applied afterward, was subject to it.
The end point for levying the recovery charge is the completion approval date. Trinione received completion approval on the 23rd. Accordingly, it is highly likely that the practical burden will fall on those who held member status on the completion approval date. However, under the law, the primary payer is the association, and whether the actual seller or buyer bears the cost can vary depending on the association's settlement method and the terms of the sales contract.
Park Hapsu, adjunct professor at Konkuk University Graduate School of Real Estate, said, "Since completion approval has already been granted, people who buy going forward can lessen the recovery burden," and added, "If the seller reflects the charge in the sale price, move-in right prices could rise."
Trinione is at a disadvantage to One Bailey for Han River views, but it is close to Gubanpo Station on Subway Line 9 and near schools such as Sehwa Girls' Middle School, Sehwa High School, and Sehwa Girls' High School, earning it high marks for desirability among end users. The head of a certified real estate agency in Banpo-dong said, "Many buyers with children who consider school districts inquire about buying or renting at Trinione."
Jang Sohee, real estate specialist at Shinhan Premier Pathfinder, said, "In the long term, Trinione could form a price range similar to One Bailey's buildings without Han River views."