There’s a ‘700-million-won apartment’ in Bangbae-dong, Seocho District [Kwon Jun-ho’s Yo-a-jeong]

The apartment we’re featuring in the last week of October is Bangbae The U.L. Foret, located in Bangbae-dong, Seocho District, Seoul.A small, single-building complex—what’s known as a “standalone apartment”—with two basement levels and seven above-ground floors, it can accommodate a total of 34 households. I’ve been covering construction and real estate for nearly a year, but this is the first time I’ve heard of this apartment complex.
The complex drew more than 25,000 views in a week, outpacing the currently “hot” The H Banpo 124 by at least 4,000 views.I visited this complex, which is just one block away from a restaurant district, recently offered leftover units through a random-supply round that drew an average competition ratio of more than 60 to 1, and has clear pros and cons. Exit 3 of Bangbae Station on Line 2, on the 30th. 
After leaving the station and walking for about four minutes at an adult man’s pace, today’s star comes into view, standing all by itself. The first thing that came to mind when I saw the complex was, “It’s really small.” I’ve seen a range of apartment complexes for this series, but never one this small.Without further ado, I walked around it once. It takes about one to two minutes. I previously spent about an hour walking around Olympic Park Foreon, a complex that was home to more than 10,000 households, so the contrast really brings home the difference in scale.
Older residential complexes still stand right in front of it. Some areas are reportedly preparing for the “Moa Housing” project, introduced by the Seoul Metropolitan Government to improve aging, low-rise residential areas where large-scale redevelopment is difficult. It also made me wonder, “Wouldn’t it have been better to redevelop the area through Moa Housing into a complex with at least 200–300 units?”Of course, its location is a major advantage. At least 90% of the route from Bangbae Station to the complex is flat, and the area has a variety of amenities, making it ideal for people looking to live there. It seemed especially suitable for newlywed couples commuting to the Gangnam area.
It also stands out that a restaurant district is just one block away. The location offers easy access while also providing a good degree of residential convenience. There was an urban-style residential building along the road by the restaurant district on the opposite side. If the apartment complex had been located there, noise might have continued late into the night. The complex is believed to have attracted attention this week because units were offered through a random-supply round.
According to the apartment’s recruitment notice, six units are being offered through the leftover-unit round: four with an exclusive area of 39m2, one of 62m2 and one of 78m2. The schedule is as follows: applications on the 22nd, announcement of successful applicants on the 28th, and contract signing on the 29th.The competition was considerable for a complex of this size.A total of 384 applications were submitted in this second subscription round. With just six units available, that works out to an average competition ratio of 64 to 1. The 62m2 and 78m2 units each drew 66 applicants, giving both the same ratio, while the 39m2 units had a competition ratio of 63 to 1.But a high competition ratio does not guarantee that a contract will be signed.The apartment has just 10 units for general sale, far fewer than other complexes. As a result, it is not covered by the project-plan approval and public-subscription requirements under the Housing Act, which apply to developments of 30 or more units. Because the units are offered only through random supply, anyone aged 19 or older can apply without a housing subscription account. The same applies to people who already own a home.In the first subscription round, 372 applications came in for 10 units, for an average competition ratio of 37.2 to 1, but contracts were signed for only four units.It cannot be ruled out that some applicants in the second round also simply thought, “I’ll put in an application and see what happens.”
People in their 30s—who are more urgently looking for a home to live in than engaging in speculation—were the age group that viewed the complex most often. One in every three people who viewed it was in this age group.
Local real estate agents agree that “the price advantage and location are top-notch.”One licensed real estate agent near the complex asked, “Where in Bangbae can you buy an apartment for around 700 million won?” The prices of units offered in the second random-supply round are 779.1 million to 846.53 million won for 39m2, 1.499 billion won for 62m2, and 1.61456 billion won for 78m2.Even compared with the urban-style residential building across the road, the prices are not high.At Elluc Bangbae Seoripul, directly in front of Bangbae The U.L. Foret, a 32m2 unit is listed at an asking price of 950 million to 1 billion won. It is smaller than Bangbae The U.L. Foret’s 39m2 units, but costs about 200 million won more, based on the sale price.Most also agreed that the location is good. They pointed to its access to both Seoul Subway Lines 2 and 7, as well as nearby schools and plentiful amenities.However, many pointed to its status as a standalone apartment as a limitation.One licensed real estate agent explained, “If you don’t plan to live in one apartment forever, resale liquidity is more important than anything else. There may be demand from renters, but there’s no certainty you’ll be able to sell when you want to.” Many also believe the chances of large-scale development in the surrounding area are, in practice, low.One licensed real estate agent next to the complex said, “Development of the area requires the owners’ consent, but most of the people who live here now have no particular desire for redevelopment. There are many building owners around here, and they already live comfortably, collecting rent from each floor.” The agent added, “More people would probably rather carry on as they are than go through redevelopment only to end up with a single apartment. It would be better to live in a villa where consent for even a small-scale development is being obtained and wait for it to happen.”What did you think of Kwon Jun-ho’s “Yo-a-jeong”? If there’s anything else you’d like to know, leave a comment anytime. Feedback is always welcome.[email protected] Kwon Jun-ho Reporter