‘Still a profitable deal’ at 80 million won per 3.3 square meters ... Lottery complex with potential gains of up to 4 billion won set to launch

[Financial News] A massive redevelopment complex in Seoul’s Banpo area, Seocho-gu, where potential gains of up to 4 billion won over nearby market prices are being discussed, is on the verge of launching sales next month. As a flood of perfect-score applications is expected from high-scoring homebuyers without homes hoping to land a once-in-a-lifetime ‘lottery’ apartment, prospective applicants are turning cautious, and even the existing-home sales market in Gangnam and Seocho is holding its breath.

According to the redevelopment industry on the 15th, THE H Banpo 124 (formerly THE H Classest), which is being built through the redevelopment of zones 1, 2 and 4 of Banpo Jugong Apartment Complex 1 in Seoul’s Seocho-gu, is set to issue its resident recruitment notice next month and begin its general-sales schedule in earnest.
The complex will comprise 5,007 homes across 50 buildings, rising from four basement levels to a maximum of 35 above-ground floors, making it a massive riverside development along the Han River. Of these, 1,832 units will be offered for general sale.
The general-sale units by exclusive floor area are as follows: 281 units of 59 sq. m, 23 of 80 sq. m, 1,358 of 84 sq. m, 82 of 99 sq. m, 44 of 114 sq. m, and 44 of 130 sq. m. The 84-sq.-m. unit—the standard size most favored by end users—accounts for about 74% of all units offered for general sale, drawing strong interest from homebuyers without homes who have high application scores.
Hyundai Engineering and Construction will handle construction, with plans for a distinctive exterior design, top-of-the-line finishes, extensive water-feature landscaping, and community facilities spanning around 23,000 pyeong (about 76,000 square meters), the largest in the Gangnam area. Meanwhile, at a general meeting on the 9th, the association finalized THE H Banpo 124 as the complex’s official name, replacing its former name, THE H Classest.

Industry insiders expect the general-sale price at THE H Banpo 124 to be set at 80 million won or more per 3.3 square meters, with 84-sq.-m. units selling for around 3 billion to 3.2 billion won. That would be the highest presale price on record for an apartment complex in South Korea with 500 or more units.
Although the presale price itself is high, the prevailing market view is that this is a ‘lottery’ apartment offering. That is because astronomical gains over nearby actual transaction prices are expected.
In fact, occupancy rights for 84-sq.-m. units at Raemian Trini One, a nearby redevelopment of zone 3 of Banpo Jugong Apartment Complex 1, have traded in the high 5-billion-won range. Meanwhile, 84-sq.-m. units at Raemian One Bailey, currently regarded as the most expensive complex along the Han River, changed hands for 7.15 billion won last May. Given THE H Banpo 124’s Han River views and the premium for a new large-scale complex, estimates suggest buyers who win a unit could see gains of at least 2 billion won, reaching around 4 billion won for units with especially good river views.

With the massive sale approaching, the existing-apartment market in Gangnam and Seocho has become deeply cautious. Even wealthy buyers with ample funds are putting off purchases of existing homes and shifting to a ‘apply first, buy later’ approach.
According to real estate data company ASIL, as of the 6th there were 11,323 apartment listings in Gangnam-gu, up 19.8% from 9,453 in early August. Listings in Seocho-gu also surged 18.8% over the same period, from 7,630 to 9,068.
By contrast, according to the Seoul Real Estate Information Plaza, home sales last September totaled just 74 in Gangnam-gu and 66 in Seocho-gu, falling to about one-sixth of the annual peak recorded in May (449 in Gangnam and 395 in Seocho). A licensed real estate agent in Jamwon-dong said, “People do ask about asking prices, but aside from those with urgent needs, most are putting off signing contracts, saying they’ll wait to see the subscription results.”
Experts expect the ability to secure financing to be the key to winning, given that the price ceiling system applies. With an owner-occupancy requirement and restrictions on resales in place, the complex is expected to see a fierce contest among ‘cash-rich’ buyers who can cover a presale payment of at least 3 billion won without borrowing.
Shin Bo-yeon, a professor in the Department of Real Estate AI Convergence at Sejong University, said, “THE H Banpo 124 is highly likely to become the most expensive complex in South Korea as soon as it is completed.” However, Shin added, “With overall buying demand being held back by the burden of rising interest rates, there may be limits to how far prices can rise above 200 million won per 3.3 square meters.”
Market experts added, “If high-net-worth individuals and high-scoring applicants who missed out on the subscription return to the existing-home market after the November sale, transactions in the Gangnam area, which have temporarily stalled, could begin to recover.”

[email protected] Moon Young-jin Reporter