The South Korean real estate market is buzzing with excitement following the recent special supply of the Raemian One Perla apartments, the first of its kind this year within the Gangnam district. According to the Korea Real Estate Agency, the auction held on the third of the month has seen unprecedented levels of interest, with 18,129 applicants vying for just 214 available units. This resulted in an average competition rate of 84.7 to 1.
Breaking down the demographics of the prospective buyers, the largest group comprises first-time home applicants, totaling 8,083, followed closely by newlywed couples at 6,611, multi-child households with 3,106 applicants, and those caring for elderly parents, which accounted for 212 applicants. These statistics reflect not just the unit's appeal but also the shifting dynamics within South Korean housing demands.
Among the various housing types available, the 59 square meter flats (Type A) particularly drew attention. For its 37 units, 6,953 people expressed interest, which translates to impressive competition of 546.6 to 1 for the first-time housing special supply offering just seven units. Meanwhile, the 83 larger 84 square meter flats (Type B) attracted 4,543 applicants.
Housing industry experts suggest this intense interest stems from several factors, including the application of the price cap law introduced to regulate excessive real estate prices. Under this framework, the projected selling price for the 84 square meter units ranges from 220 million to 240 million Korean Won, significantly lower by about 50 million Won compared to similar existing residences.
The Raemian One Perla project marks its territory within the renovated Block 6 of Bangbae-dong as part of extensive urban redevelopment. It comprises 16 blocks of buildings, ranging from four to twenty-two stories high, totaling 1,097 units, and is outlined to be completed soon, with occupancy expected this November. The housing market is eager for these openings, anticipating not only accessibility but also potential significant price advantages.
Given the proximity to key amenities such as the Shinsegae department store, Seoul St. Mary’s Hospital, and recreational cafes nearby, residents will enjoy the benefits of convenient living combined with advanced schools and educational institutions, making these apartments attractive to families. Notably, renowned schools such as Bangbae Elementary and other prestigious secondary institutions are just minutes away.
This newly launched housing model is offered at what is being described as "5 billion lottery" prices. Those who secured bids for the apartments could see projected profits of as much as 5-7 million Korean Won, especially when compared with recently sold properties like the Bangbae Grand Xi, which recorded transactions up to 297 million Won for similarly sized units.
Despite the elevated cost of getting involved—contract payments are expected to be around 20% due before the contract submission by the end of next month—the organized auction remains highly attractive. The first-tier bidding process on the 4th is expected to draw even more interested individuals, as many see this opportunity aligning perfectly within the current real estate framework aimed at moderative returns.
According to analysts, the Raemian One Perla special supply figures are indicative of broader trends within the Seoul metropolitan area, characterized by sustained demand and the allure of solid post-sale appreciation. Such dynamics suggest both immediate and long-term investment viability. Many anticipate this demand to grow as the annuity and credit frameworks adjust to influence future real estate purchases irresistibly.
All applicants are advised about the rigorous payment timelines, with initial deposits ranging for the 59 square meter type at 37 million Won and the upper 84 square meter types requiring approximately 49 million Won upfront. An additional challenge lies within the timeframe to manage the mid-term payments along with the accruing interest costs and taxes which can reach over 100 million Won.
This significant engagement from potential buyers clearly demonstrates the competitive nature of South Korea's current housing market—a blend of fervor for new constructions, strategic investments, and demographic shifts driving the race within the already vibrant Gangnam region.