“I’d advise my son against it”—Why, when a 59m2 unit in Gangdong District costs 300 million won? [Kwon Jun-ho’s Hot Apartments, Explained]

The apartment complex we’re featuring in the first week of November is the Godeok-Gangil District 3 Complex, located near 174 Gangil-dong, Gangdong District, Seoul.It is a land-lease housing development sold by the Seoul Housing & Urban Development Corporation (SH Corporation). Under this somewhat unusual arrangement, the public sector owns the land, and buyers purchase only the buildings.
The complex ranked fourth in views, but I decided to feature it because I had already covered all the complexes ranked above it in my column or in videos.I visited a place more than a 30-minute walk from the nearest subway station, a very quiet area surrounded entirely by residential complexes, and a spot where getting onto the expressway is not difficult if you have a car. On the 6th, at Exit 3 of Gangil Station on Seoul Subway Line 5.Before visiting today’s featured complex,I came prepared for a bit of a trek.That’s because there is no subway station nearby that’s within reasonable walking distance.
It’s about 2.3 km from Gangil Station to the complex.The farthest distance I’ve covered since starting this series.When I walked it myself, it took 33 minutes.I got to experience firsthand why the area around the complex needs a subway station.The walk wasn’t boring, with Godeokcheon and Mangwolcheon along the way. It took more than 30 minutes on foot, but taking in the scenery as I walked made the journey seem shorter than expected.At last, today’s featured complex came into view.Godeok-Gangil District 3 Complex is a large apartment development with two basement levels and 29 floors above ground, comprising 17 buildings and a total of 1,305 households. It is a fully residential area, surrounded by Gangdong Riverst Complexes 4, 6 and 7.
I walked around the complex. Excluding the areas still under construction, it took about 10 minutes to walk around roughly three-quarters of it.One of the complex’s main advantages is its proximity to parks, kindergartens, and elementary and middle schools.The park right next door had areas where people could spend time with their pets, as well as a route for a light jog.
I even met a nearby resident walking their dog in the park that day. If you have a car, there didn’t seem to be much to complain about.The Olympic Expressway is also accessible right in front of the complex.But if you don’t have a car, you should think carefully before moving here.Because the subway station is far away, residents have to rely on buses, and missing even one bus could significantly lengthen their commute.
Godeok-Gangil District 3 Complex drew a lot of interest because the housing application schedule was approaching.The schedule is as follows: special-supply applications on the 2nd, first-priority applications on the 4th, second-priority applications on the 6th, the announcement of successful applicants on the 26th, and the start of contract signing on March 22 next year.
Competition was fierce. According to SH, 15,868 people applied for 566 homes in the special-supply application period from the 2nd to the 4th, resulting in an average competition rate of 28 to 1.
Competition was said to be fiercest for the special supply for young people. A total of 5,414 people applied for 106 homes, a competition rate of 51.1 to 1.
The special supply for newlyweds also drew 5,257 applicants for 106 homes, a competition rate of 49.6 to 1. The rates were 23.5 to 1 for the first-time homebuyer category and 10.9 to 1 for the newborn category.Another factor behind its popularity was its lower price compared with nearby complexes.According to the real-estate industry, prices at Godeok-Gangil District 3 Complex are mostly in the 200 million to 300 million won range. The units come in 49m2 and 59m2 sizes, and can be purchased for less than 400 million won.A comparison with nearby complexes makes just how low the prices are immediately clear.At Gangdong Riverst Complex 8, which has 946 households, a 59m2 unit sold for 1.26 billion won last July. That is three to four times as much.
However, residents must pay monthly land rent in addition to the purchase price. Monthly rent is set at 426,000 won for a 49m2 unit and 511,500 won for a 59m2 unit. There is also a 10-year resale restriction and a five-year residency requirement.
Among the real-estate agents I met that day, some said, “If you get it, it’s like winning the lottery,” while others said, “I wouldn’t recommend it.”Taken together, their views can be summed up this way: “If you absolutely need to live in Seoul and have 300 million to 400 million won, it may be worth buying, but I wouldn’t recommend it as an investment.”Still, four out of five did not recommend buying one.One licensed real-estate agent near the complex said, “Because you’re buying only the building, its value as an asset declines,” adding, “The land increases in value over time, but buildings lose value as they age.”
Another licensed real-estate agent asked rhetorically, “You can’t sell it for 10 years, but will the price go up after that?” They added, “Wouldn’t it be better to go for Gyosan New Town, planned for Hanam City in Gyeonggi Province?”One agent expressed an even stronger view. “The land-lease system itself is relatively new, so it’s still difficult to assess its value accurately,” the agent said, emphasizing, “But one thing is certain: this is the kind of housing purchase I wouldn’t recommend to my son.”Some said the location and price themselves were reasonable. One licensed real-estate agent explained, “You can get straight onto the expressway after driving just a little, so the location isn’t bad,” adding, “SH will raise the rent every year, but you won’t find a price like this in Seoul.” The agent also noted, “Its profitability inevitably falls short of buying the land and building together,” but added that “it’s a good option for people who plan to live there themselves.”What did you think of Kwon Jun-ho’s “Hot Apartments, Explained”? If there’s any other information you’d like to know, feel free to leave a comment. Feedback is always welcome.[email protected] Kwon Jun-ho Reporter