No such thing as a 558 million won price tag... 3,000 people rush for a 200 million won lottery

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[The Financial News] More than 3,000 people applied for two unsold apartment units in Gwangmyeong City, Gyeonggi Province. The crowd appears to have been drawn by the prospect of a capital gain of about 200 million won if they win.
According to Cheongyak Home on the 29th, 2,956 people applied for the two units offered through a so-called "pick-up" sale at Gwangmyeong Xi The Sharp Forena in Gwangmyeong-dong, Gwangmyeong-si, during the application period from the 27th to the 28th.
The complex is an apartment development built as part of the Gwangmyeong District 1R Redevelopment Zone project. It consists of 3 basement levels and 38 floors above ground, with a total of 3,585 units, and residents moved in last December.
The two units were reoffered after being returned due to illegal activity. They include one 39-square-meter unit for general sale and one 49-square-meter B unit for special sale. The special-sale unit is for first-time homebuyers.
More specifically, the special-sale 49-square-meter unit is open to Gwangmyeong City residents who do not own a home and meet the first-time buyer requirements. A total of 1,955 people applied. For the general-sale 39-square-meter unit, which is limited to homeless household heads living in Gwangmyeong City, 1,001 applications were submitted.
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Including ancillary costs, the sale prices are 436.8 million won for the 39-square-meter unit and 558.8 million won for the 49-square-meter unit. Based on current market prices, the 39-square-meter unit is worth 600 million won and the 49-square-meter unit about 800 million won. That suggests a potential gain of roughly 200 million won.
Earlier, the complex drew 4,422 applicants for 422 units in its first-round subscription in May 2023, recording an average competition rate of 10.5 to 1. At the time, the 84-square-meter units were offered at 982.9 million won to 1.0455 billion won. Comparable units are now trading in the 1.2 billion won to 1.3 billion won range.
ljb@fnnews.com Lee Jong-bae Reporter