More Than 1 Million People Vie For Final 3 Apartment Units in Seoul
Over 1 million people applied for three units at a new apartment complex in the upscale Gangnam district in Seoul, South Korea. The high-end apartments, called the The H Firstier IPark, had formerly been a four-decade old complex that was redeveloped by Hyundai Engineering and Construction and HDC Hyundai Development Co.
The super intense competition shows how demand for properties in the affluent area remains strong, despite broader weakness in South Korea’s real estate market.
The three units that came up for sale are particularly attractive because they are being offered at the pre-sale price four years ago rather than the market rate.
Due to the intense competition, government regulations stipulate that larger households or those who have not owned property for a long time should have priority.
In South Korea, it is common for people to buy new apartments even before construction starts as it is cheaper, with the buyer paying in increments over the following years. Due to severe competition, government regulations stipulate that larger households or those who have not owned property for a long time should have priority for such apartments.
The three units in the complex came up for sale after pre-sale buyers backed out of the deals, according to the Korea Real Estate Board, a state-run agency.
As the units are already completed, they are exempt from the regulations that prioritise certain households. Another selling point of the apartments is their proximity to private education centers and sought-after public high schools in Gangnam.
The successful bidders will be announced on Thursday.
Why South Korean Residents Are Drawn To Gangnam, Seoul?
Gangnam has all the characteristics a neighborhood needs to pull people in, like good jobs, transportation, education and surroundings.
Of more than 1 million companies located in Seoul, around 10 percent are in Gangnam, according to the Korean Statistical Information Service.
Some of the major firms with headquarters in the three districts include Hyundai Motor, GS Caltex, NCSoft and crypto exchange Upbit operator Dunamu.
Gangnam is also a popular location among start-ups as they aim to build networks and find potential investors in the area.
Gangnam is an attractive place to live, especially those raising children.
It boasts some of the most prestigious schools in the country and is home to the famous education hot spot, Daechi-dong.
Daechi-dong is considered a hub of private education with more than 900 hagwon (private cram schools) crammed within a couple of blocks. That is four times more than in Nowon District, northern Seoul, which houses the city’s second largest hagwon street.
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