4,843 People Applied...All Types Completed

"La Classe Jade Fine," the first supply complex of Noryanggin New Town in Seoul's Dongjak-gu, overcame controversy over high supply prices and completed all unit types in the first priority subscription round with an average competition rate of 26.9-to-1. According to Korea Real Estate Board's subscription website, 4,843 people applied for 180 units in the first priority subscription for general supply (designated area) held on April 14.

The highest competition rate by unit type was the exclusive 59㎡ Type B, with 212 people applying for 5 units, recording a 42.4-to-1 ratio. In the special supply held the previous day, 4,997 people applied for 189 units, showing a 26.4-to-1 ratio, indicating successful momentum from the beginning of the subscription period.

Higher Than Banpo, Yet Why Did People Flock?

The complex, constructed by a consortium of GS Construction and SK Eco-Plant, comprises 14 buildings spanning from 4 basement levels to 28 floors above ground, with a total of 1,499 units. Of these, 369 units of exclusive 59-106㎡ were supplied as general sales volumes.

The core of the controversy was the supply price. Located in an area not subject to the supply price ceiling system, the complex was priced at a maximum of 2.151 billion won for exclusive 59㎡ Type A units and 3.013 billion won for exclusive 106㎡ Type A units. The maximum price for exclusive 84㎡ units exceeded 2.5 billion won, which was noted to be higher than the maximum price of 2.046 billion won for exclusive 59㎡ units at "Otier Banpo," which held its subscription on the same day.

Nevertheless, transportation accessibility was cited as the key reason demand surged. The complex is a 5-minute walk from Jangseungbaeggae Station on Seoul Metropolitan Subway Line 7 and an 11-minute walk from Noryanggin Station on Lines 1 and 9. Additionally, being the first supply complex of Noryanggin New Town, which will be developed into a total of 10,000 units, was analyzed as a factor in concentrating demand.

Noryanggin New Town, First Fruit of Long Anticipation

Noryanggin New Town was among the slowest-moving new town projects designated by Seoul. As the Noryanggin area, which had remained a deteriorated residential district for decades, entered full-scale redevelopment, La Classe Jade Fine fired the first shot of general supply.

While reconstruction and redevelopment projects in Seoul's Gangnam area command supply prices ranging from 3 to 5 billion won, properties in key non-Gangnam locations with Gangnam accessibility tend to serve as 'alternative investment destinations' for demand. Dongjak-gu attracts both end-user demand and investment demand through its Han River views, transportation networks, and relatively low entry barriers.

Winners will be announced on April 22, and formal contracts will take place from May 4 to 6.