“I’ve been waiting just for this”: A 3 billion won lottery if you win... Frenzy over applications for Banpo’s flagship complex

[Financial News] “Many people say they’ve been saving up while waiting to apply for a unit in Banpo 124. If they win, it’s like winning the lottery, and with around 1,800 units on offer, they’re pinning their hopes on it.” (A, head of a licensed real estate brokerage in Banpo-dong, Seocho District, Seoul)
According to industry sources on the 26th, expectations among prospective buyers are running high now that the sales schedule for The H Banpo 124 in Seocho District, Seoul, has been finalized. With the complex considered the biggest draw of this year’s year-end housing market, prospective applicants are stepping up their preparations. “Even customers who came to look at apartment listings and make inquiries always bring up this application,” A said. “They say they’ll decide whether to buy an existing apartment after seeing the application results.”
According to the notice for institution-recommended special supply for the complex, released on the 24th, the announcement inviting applications from prospective residents will be made on November 27, and applications for special supply will open on December 7. First-priority applications for general supply are scheduled for the 8th. Winners will be announced on December 16. The complex, being rebuilt on sections 1, 2 and 4 of Banpo Jugong Complex 1, will have a total of 5,007 units. Of these, 1,801 will be offered for sale: 930 through special supply and 871 through general supply.
The strong interest is seen as stemming from the combination of an unusually large number of units for Seoul’s Gangnam area and expectations of huge gains due to the price ceiling. Market participants expect prices of around KRW 90 million per 3.3 square meters, which works out to about KRW 3 billion for the standard 84-square-meter unit (exclusive floor area). An 84-square-meter unit at Raemian Trinity One, which began occupancy two months ago and is just across the street from The H Banpo 124, sold for KRW 5.7 billion in August. Units of the same size at Acro River Park and Raemian One Bailey, considered Banpo’s two leading complexes, also recently sold for KRW 6.0 billion to KRW 6.2 billion. This explains why the application is expected to draw fierce competition, with the prospect of a KRW 3 billion gain over market prices. Park Ji-min, head of the WolYong Subscription Research Institute, forecast an average competition ratio of 80 to 1, with cutoff scores of 74 points for 59-square-meter units and 69 points for 84-square-meter units.
However, even winning will be only the start of a series of hurdles for those who cannot secure enough funds before moving in. If the sale price exceeds KRW 2.5 billion, the limit on mortgage loans is capped at KRW 200 million. With completion scheduled for November 2027, buyers will have to raise around KRW 2.8 billion in cash within a year. The owner-occupancy requirement and resale restrictions under the price ceiling system will also apply, making buyers’ ability to mobilize cash the biggest variable.
Meanwhile, some units in this application will be allocated by lottery to people who already own one home, and they too are expected to join the strategic guessing game. “The actual competition ratio among one-home owners is likely to be about 13 times the average,” Park said. “If they use a loan to pay the balance, they must sell their existing home within six months of the date they become eligible to move in.”
[email protected] Jeon Min-kyung Reporter