"If It Had Been an Apartment, It Could Have Reached 5 Billion Won" [Kwon Jun-ho's Real Estate Rundown]

"If it had been an apartment rather than an officetel, an exclusive 84-square-meter unit could have reached 5 billion won." (A licensed real estate agent in Mokdong, Yangcheon District, Seoul)The property we will introduce in the second week of September is Mokdong Yunseul Xi, located in Mokdong, Yangcheon District, Seoul.More than 68,000 people viewed it, putting it more than twice ahead of second-place Brownstone Mokdong, which had 25,887 views.It is not technically an apartment, but we decided to cover it because it recorded the highest number of views of any development since this series began. It is also a brand-new development whose subscription winners were announced on the 11th, just one day earlier.We visited the site, which borders Mokdong Complex 7, drew higher-than-expected competition, and is within walking distance of Omokgyo Station and Mokdong Station on Subway Line 5. Omokgyo Station Exit 2 on Subway Line 5, on the 11th.After walking for about 10 minutes, Mokdong Yunseul Xi came into view.Crossing just one traffic light takes you to Mokdong Complex 7, where reconstruction is well underway.
The development is not particularly large. It consists of three buildings, with up to 48 floors and 651 units.Omok Park is directly in front of the development, making it a pleasant place for a light stroll.The park is larger than expected. In terms of how it feels, it seemed about as large as Mokdong Yunseul Xi.
The location itself was good.Mokun Elementary School and Mokun Middle School are directly in front of the development, and Hyundai Department Store can be reached in 10 minutes on foot.It is just the right distance for a walk on a cool day.
Earlier this month, we also visited the Mokdong Yunseul Xi model house. I remember singer Sung Si-kyung welcoming visitors by saying, "Hello, I’m Sung Si-kyung. It is my sincere pleasure to welcome you to Mokdong Yunseul Xi. Would you like to discover together the special story of Xi meeting the work of world-renowned artist 'Ned Khan'?"The interior space of the model house was used more effectively than expected.What stood out most was that every unit had a balcony and that removing the folding doors allowed the space to be used like an expanded balcony. Although the difference was less than a single step, the extra room made it possible to fit more items, such as exercise equipment and wardrobes.
The premium membership community touted by the builder also caught our attention.It brought over the platform operated by Josun Hotels & Resorts as is. The quality was good, but it also made me briefly wonder about the maintenance fees. The biggest reason Mokdong Yunseul Xi drew "explosive" interest was that it was a "subscription week" development.Applications were accepted for one day, on the 8th, and the winners were announced on the 11th.
Until the subscription period began, industry observers predicted that the competition would not be particularly intense. Although it was a new development, it was an officetel rather than an apartment, was not a large-scale development, and was not inexpensive: prices ranged from 2.81 billion to 6.89 billion won, while the average sale price per 3.3 square meters based on exclusive floor area was in the 88 million-won range.Contrary to everyone’s expectations, however, it was a success, recording a peak competition rate of 32 to 1 and an average rate of 5.8 to 1.Group 1 (exclusive 115 square meters, category A, similar in size to an apartment’s exclusive 84 square meters) recorded the highest competition rate at 32 to 1 among priority applications for Seoul residents. Group 2 (exclusive 114 square meters, category B) posted 20.3 to 1, while Group 3 (exclusive 114 square meters, category C) recorded 20.7 to 1. All major groups saw double-digit competition rates.
Other reasons for its popularity included its status as a new development rarely seen in Mokdong, the fact that anyone aged 19 or older could apply regardless of whether they had a housing subscription account, and easier access to loans than for apartments.However, low barriers to entry can also mean that many applicants have no real intention of proceeding.An industry source explained, "Because there is virtually no penalty even if applicants give up, we need to wait and see what the actual contract rate will be."
Nearby agents rated Mokdong Yunseul Xi’s location highly but predicted that its price appreciation would be limited because of its officetel characteristics. This was also why they found the competition rate surprising.Agent A, a licensed real estate agent near Mokdong, said, "Our agency also received many inquiries, but it seemed that an unusually large number of young people took part in this subscription. Just one or two years ago, people bought units in Mokdong developments by taking out loans of more than 1 billion won, but that is impossible now, so they flocked to the officetel subscription."In fact, according to a real estate platform, people in their 30s accounted for more than 43% of those who viewed the property most frequently over the 7th and 8th.
Agents expected Mokdong Yunseul Xi to command a premium as a new development, but said there would clearly be a ceiling on further gains. Another licensed agent predicted, "It might be different if there were a resale of the presale rights along the way, but that is not the case either. It will not be able to rise more than the other developments."Some also expect the sale prices of the 14 developments in Mokdong to rise further, given that most of Mokdong Yunseul Xi’s units were priced in the 3-billion-won range.The analysis is that, since an officetel has surpassed 3 billion won, apartments in Mokdong’s developments will inevitably set even higher prices. One licensed agent hinted, "For an exclusive 84-square-meter unit in Complex 7, the expected sale price is around 4 billion to 4.5 billion won."
They also expressed doubts about the maintenance fees. Officetels generally have higher basic maintenance fees than apartments, and the services from Josun Hotels & Resorts would not be provided free of charge. A licensed agent near Mokdong Yunseul Xi predicted, "Many people in the area say they applied, but we will have to wait and see whether that leads to contracts."What did you think of Kwon Jun-ho’s 'Real Estate Rundown'? If there is any additional information you would like to know, please leave a comment anytime. Feedback is always welcome.[email protected] Kwon Jun-ho Reporter