Seoul apartment complexes subject to South Korea’s pre-sale price cap are setting new subscription records, as buyers rush to projects seen as offering large gains over market prices. Demand has surged not only in Gangnam but also in Ichon-dong, a long-established upscale neighborhood north of the Han River, reinforcing Seoul’s dominance in the national pre-sale market.
According to the Korea Real Estate Board’s Cheongyak Home platform, the first-round subscription for “Ichon Le El” in Ichon-dong, Yongsan-gu, drew 10,528 applications for 78 units, an average competition rate of 134.9 to 1. By unit type, the 100-square-meter homes were most sought after at 254.1 to 1, followed by 106 square meters (181.9 to 1), 122 square meters (66.7 to 1) and 118 square meters (50.5 to 1). The special supply round earlier also signaled strong demand, with 1,465 applicants for 10 units, or 146.5 to 1.
The project is being supplied through the remodeling of Ichon Hyundai Apartments and is LOTTE E&C’s first “Le El” branded complex in northern Seoul. The complex comprises nine buildings from three basement levels to 27 stories above ground, totaling 750 households. The price-cap rules were cited as a key draw.
The pre-sale price for the 122-square-meter units is 3.155 billion won to 3.304 billion won. Nearby, a 124-square-meter unit at Raemian Caelitus traded for 4.45 billion won in January, prompting analysis that winners could secure at least 1 billion won in gains.
In southern Seoul, “Otyer Banpo” in Jamwon-dong, Seocho-gu, also posted heavy demand in its special supply round, with 15,505 applications for 43 units, an average of 360.6 to 1. By category, 6,797 applied under the first-time homebuyer track, 6,045 under newlyweds and 2,470 under multi-child households. The 59-square-meter Type B recorded 434.4 to 1.
Otyer Banpo, located in Seocho-gu, is directly covered by the price-cap system. Its 84-square-meter units are priced at 2.5015 billion won to 2.7565 billion won. A nearby Maple Xi 84-square-meter occupancy right traded for 5.65 billion won in November, leading to estimates of roughly 3 billion won in potential gains. The project is also a post-sale development and the first to use POSCO E&C’s high-end “Otyer” brand, and it is near Banpo Station and the Wonchon elementary and middle school district, factors that helped drive what the industry described as near indiscriminate demand.
Fears of a shortage of new supply in Seoul are also concentrating demand into subscription accounts. Real estate information firm RealToday said first-round applicants for nine Seoul projects this year totaled 102,118, more than double the combined total for non-Seoul areas over the same period, at 48,873.
The surge is also reflected in record-high point scores. This year, “Acro The Seocho” in Seocho-gu posted an average first-round competition rate of 1,099.1 to 1 and produced another perfect 84-point subscription account just seven months after the previous one, a score typically requiring top conditions such as at least 15 years without owning a home. The pre-sale industry said capped-price projects, offered below market levels, are increasingly viewed as a last chance to build wealth, drawing large numbers of high-score applicants into the market.
* This article has been translated by AI.
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