Seoul Gangdong 'Gangdong Traditional Zai', two residential units attract 100,000 people to apply... Hoping the market price difference profit remains the same

Seoul Gangdong-gu Gidong “Gangdong Heritage Xi” two unsorted lottery houses attract over 100k applicants, once again confirming that pre-sale prices significantly below market value can trigger extremely strong demand.

On the 13th, according to data from the Korea Real Estate Board’s application website, a total of 106,093 people applied for two unsorted lottery units with a dedicated area of 59㎡ B-type at Gangdong Heritage Xi, with an average competition rate of 50,046.5:1. An unsorted lottery refers to a method where remaining units after regular sales due to waivers or qualification issues are re-drawn. Even those without an application account can apply, and 100% of winners are selected through the lottery, so both first-time buyers and investors often rush to participate.

The main reason for the attention to this application is the difference between the pre-sale price and the current market price. The pre-sale price for this property is 733.44 million won for the 7th floor and 786.87 million won for the 28th floor, still based on the December 2022 pre-sale pricing. In contrast, the same type of unit had a transaction record of 1.7 billion won in January this year, which, at the time of winning, is expected to yield a market price difference of about 1 billion won. Although there are no resale restrictions after winning, buyers must commit to a 3-year residence obligation and are prohibited from winning again within 10 years. The winners will be announced on the 16th, with occupancy expected next month. A 20% deposit is required at signing, and the remaining 80% must be paid within 30 days, creating significant financial pressure.

A similar trend is expected to continue in Gyeonggi-do Gwangju. Gwangju Gyeokcheon-dong Knowledge Information City Public Housing “Gwangju Dieter Prestige” S2 zone will conduct unsorted lottery applications for six units of 59㎡ dedicated area on the 15th and 16th. One unit will be specially offered on the 15th, and five units will be normally offered on the 16th, targeting Gwangju residents without housing. The pre-sale prices range from 785.25 million to 100k won, based on the June 2024 pre-sale prices. Comparing with nearby complexes like “Lai Mei An Sure,” where similar units sold last month for 1.77 billion to 1.84 billion won, a market price difference of about 1 billion won is also expected here.

Gwangju units are expected to be available for occupancy in May 2027, with a different payment structure from Gangdong. After winning, buyers must pay 20% deposit, 60% mid-term payment, and 20% final payment in stages. Resale restrictions will last for 3 years from the date of the first winner announcement on July 10, 2024, with a 5-year residence obligation and a 10-year restriction on winning again. Market observers believe that if pre-sale prices in Seoul and the core areas of the capital region are significantly below market prices, the overheated phenomenon of unsorted lottery sales will continue in the short term. Especially since supply is limited and price advantages are significant, this trend may continue to trigger high competition and cash flow challenges in the future.