“From 250 million won to well over 2 billion”... “Association members hit the jackpot” [Kwon Jun-ho’s Trending Apartments, Explained]

The apartment we’re featuring in the fourth week of October is De’Fine Artia, located near Jangseungbaegi Station on Seoul Subway Line 7 in Dongjak-gu, Seoul.We had previously covered DH Banpo 124 (formerly DH Banpo Classte), which ranked first in views, so we went to take a look at De’Fine Artia, which ranked second.Scheduled for occupancy in November 2029, the complex is in Noryangjin New Town and is also known as Noryangjin District 2.It is next to Noryangjin District 6, but District 6 is an apartment complex while District 2 is a mixed-use complex. We visited a site with relatively few association members and a high proportional rate, one with good access to places such as Yeouido and Yongsan, and one whose recent non-priority subscription round drew 212 applicants per unit.
Exit 5 of Jangseungbaegi Station on Line 7, on the 23rd.As soon as you leave the station, the construction site comes into full view. Today’s focus: De’Fine Artia in Noryangjin.I knew the site was small, but as I walked, it seemed to go on endlessly.As I looked around, I had somehow made it all the way into Noryangjin District 6. The boundary between Districts 2 and 6 was not clearly marked, so it seemed necessary to be careful.The complex is small.With four basement levels and up to 45 above-ground floors, its floor-area ratio exceeds 400%. But it is a mixed-use complex with just two buildings. It has 404 units, including 171 for general sale and around 105 rental units.
The location is quite good. The subway is very convenient, and Noryangjin Station is easy to reach on foot or by bus. Line 7 provides easy access toward Gangnam, while buses and other options make it easy to get to Yeouido.It is also near Acro River Sky, by Noryangjin District 8, which we featured once before.That also makes it easy to get to Yeonghwa Elementary School, which borders Acro River Sky, and Yeongdeungpo Middle and High Schools. On the Noryangjin side, Noryangjin Elementary School and Jangseung Middle School near the station are also within walking distance.One drawback was that the complex is quite small.I also felt that its lower resale liquidity compared with apartments was a limitation. There is a church and a large supermarket right next to the complex. With apartment complexes directly in front and nearby, it seemed like a good place to live.
The reason De’Fine Artia attracted so much attention last week was a recent “jup-jup” round—a non-priority housing subscription for remaining units.According to the Korea Real Estate Board’s Cheongyak Home, 212 people applied for one 109-square-meter Type A unit in an application for discretionary supply held on the 16th. That is a competition ratio of 212 to 1. These were units that had remained unsold after non-priority subscription rounds held in August and September. The sale price is unchanged at 2.95 billion won.After several rounds failed to sell, the units were eventually all sold. In fact, the De’Fine Artia website says that all unit types have sold out.The complex had also drawn strong interest through a non-priority subscription round in mid-August. At the time, 656 people applied for the 15 remaining units, for an average competition ratio of 43.7 to 1.The unit type with the highest competition ratio was the 84-square-meter Type A.A whopping 171 people applied for one unit, for a competition ratio of 171 to 1. For the 84-square-meter Type B units, 415 people applied for nine units, a ratio of 46.1 to 1. In the August non-priority round, the sale prices were around 2.5 billion to 2.7 billion won for the 84-square-meter units and 2.95 billion to 3.06 billion won for the 109-square-meter units.
The resale restriction runs for three years from July 8; buyers need only complete the registration of ownership transfer within those three years. There is no mandatory residency period.
Real estate agents near the complex cited its “high proportional rate” as a key feature of De’Fine Artia.The proportional rate is a key indicator of the development gains from urban improvement projects such as reconstruction and redevelopment; a higher rate means better returns. Typically, the rate rises when the number of units for general sale is higher relative to the number of association members.
One real estate agent explained, “De’Fine Artia has a lot of units for general sale relative to the number of association members,” adding, “The construction period is short, too, so it’s probably an attractive project for the association members.” The agent continued, “Just 10 to 15 years ago, a villa in Noryangjin District 2 cost 250 million won, but the sale price has now soared well past 2 billion won, so long-time association members have a substantial gain.”However, the fact that it is a mixed-use complex is said to be a drawback.Another real estate agent confided, “Compared with a regular apartment, its value is inevitably a little lower,” adding, “When the initial sale price came out, it was similar to those in nearby districts, so I did think, ‘Isn’t that a bit expensive?’”The sale prices at Raclache Xi De’Fine (Noryangjin District 6), which directly adjoins De’Fine Artia, range from 2.1 billion to 3 billion won. Raclache Xi De’Fine is a large apartment complex with 1,499 units.There are also reports that some buyers gave up their contracts. A real estate agent near the complex said, “I’ve heard of cases where people who bought units on the 10th floor or lower gave up their contracts,” and predicted, “You’ll only be able to see the Han River from the very top floor.”The explanation is that despite some drawbacks, the location is indeed good.The agents we met that day agreed, saying, “There’s nothing Noryangjin has to envy about Gangnam.” Agent A said, “Once Noryangjin New Town is complete, at least 10,000 households will move in,” and assessed, “The school district and the location will improve further.”What did you think of Kwon Jun-ho’s “Yo-A-Jeong,” our roundup of apartments trending now? If there’s anything else you’d like to know, leave a comment anytime. Feedback is always welcome.[email protected] Kwon Jun-ho Reporter