Table of Contents
- 1 ‘Mafi’ in Gwangmyeong to move in until 2027
- 2 Restrictions on resale have been lifted… Seoul’s frozen real estate market
- 3 Given the potential risks associated with “Mafi” complexes, what measures could policymakers implement to ensure a sustainable and inclusive housing market for all South Koreans?
Photo = Getty Image Bank ‘Mafi (minus premium)’ complexes are appearing one after another in the metropolitan area. In complexes where there was controversy over high sales prices, the price of pre-sale rights or union member occupancy rights was lower than the pre-sale price. In large complexes such as Dongjak-gu and Seongdong-gu in Seoul and Gwangmyeong and Yongin in Gyeonggi-do, the market price is lower than the sale price. This is because, due to an increase in the number of move-ins and a temporary decline in jeonse prices, contractors who are short on balance are putting their properties up for sale at low prices. As the wait-and-see policy spreads due to the strengthening of lending regulations in the financial sector, it is interpreted that many policyholders are weighing their disposal.
‘Mafi’ in Gwangmyeong to move in until 2027
According to the industry on the 23rd, Trius Gwangmyeong, which is redeveloping Gwangmyeong District 2, is one month away from moving in, and an exclusive 84㎡ property is listed for sale at 1.02 billion won for the lower floors and 1.1 billion won for the upper floors. Last year, we supplied 84㎡ exclusively for 1.0306 billion won to 1.186 billion won and found a landlord last August. Then, on the 25th of last month, restrictions on resale of pre-sale rights were lifted. In Gwangmyeong, districts 10, 14 to 16 held housewarming ceremonies from 2021 to last October. Areas 1, 2, 4, 5, 9, 11, and 12 are being demolished or under construction. Occupancy of these complexes will continue from next year until 2027.
In the future, Gwangmyeong Districts 11 and 12, near Gwangmyeong Intersection Station on Subway Line 7, are scheduled to be sold. The number of households in each area scheduled to move in varies from 1,957 to 4,291. By next year, restrictions on resale of pre-sale rights will be lifted, except for districts 11 and 12. This is the background that is expected to continue until 2027 with an influx of sales and leases. Kim Je-kyung, director of the Tumi Economic Research Institute, said, “The market price has recently been formed due to concerns that the move-in quantity may increase to 600 million won based on the exclusive 84㎡ basis that contractors must bear due to a decline in jeonse prices,” adding, “However, once the quantity is absorbed to a certain extent, the location conditions will change.” “This could be an opportunity for good consumers,” he explained.
Gwangmyeong Xi Hill State SK View (Gwangmyeong District 5) has three years left to move in, but the exclusive 59㎡ unit was traded on the 5th for 856.1 million won, lower than the sale price (902 million won). It is higher than last May (699.95 million won), but falls short of the sale price. Restrictions on resale of pre-sale rights will be lifted here in January next year.
Gwangmyeong Central I-Park (Gwangmyeong District 4) changed hands for 1,139.48 billion won last July, when resale of the pre-sale rights for the same area was allowed. This is a complex where there was controversy over the high sale price as the sale price for an exclusive 84㎡ unit reached 1.272 billion won. The contract for the exclusive 59㎡ unit was concluded at the highest selling price of 890 million won, but there are also union member listings priced 40 million won lower than this. Move-in is scheduled for November next year.
A real estate agent near Gwangmyeong Intersection Station said, “While the market price of 59㎡ for exclusive use is relatively high, young consumers lack the ability to pay the balance,” adding, “The market price for 84㎡ for exclusive use tends to move to other areas for their children’s education, so the market price is relatively low.” said. Another licensed real estate agent said, “There is no obligation to live in the unit, but it is a burden for union members to raise the balance.” He added, “Some union members are offering about 30 million won lower than the sale price from the beginning.”
Restrictions on resale have been lifted… Seoul’s frozen real estate market
Even in Seoul, large complexes that are cheaper than the sale price are appearing. Sangdo Prugio Clavenue in Dongjak-gu, which moved in at the beginning of the year, had a highest sale price of 84㎡ for exclusive use, reaching 1,393.93 million won. On the 11th, it changed hands for 1,331.83 million won (11th floor). This is a complex where the contract was finalized in September after being dragged out for nearly a year after receiving the first subscription in September of last year. Due to reasons such as high price sales, the market price remains low even after occupancy.
Cheonggye SK View in Seongdong-gu, near Dapsimni Station on Subway Line 5, changed hands on the 21st of last month for 936.68 million won (22nd floor), which was lower than the sale price (960 million won). It is adjacent to Cheonggyecheon and close to Sindap Station on Line 2.
The e-Pyeonhansesang Guseong Station Platform City in Yongin, Gyeonggi Province, which was highly anticipated as it is near Guseong Station on the Seoul Metropolitan Rapid Transit (GTX)-A line, was traded for 1.1 billion won in August for an exclusive 85㎡ unit. This is about 100 million won cheaper than the sale price. Recently, the asking price for many properties is in the 1.1 billion to 1.2 billion won range. A representative of a nearby real estate agent said, “The price range was high, and there were many people who purchased the property for investment purposes.” He added, “The GTX-A route has been opened, but it is still only connected to Suseo Station, so there is not a full-scale influx of actual buyers.”
Reporter Park Jin-woo
Given the potential risks associated with “Mafi” complexes, what measures could policymakers implement to ensure a sustainable and inclusive housing market for all South Koreans?
## World Today News Interview: “Mafi” Complexes and the Shifting Real Estate Landscape
**Introduction:**
Welcome to World Today News. Today we are joined by two experts to discuss the recent trend of “Mafi” complexes appearing across the metropolitan area and the factors driving this surge in lower-priced properties. Our guests are [**Guest 1 Name and Credentials**] and [**Guest 2 Name and Credentials**].
**Section 1: Understanding the “Mafi” Phenomenon**
* **Interviewer:** Could you both define what “Mafi” complexes are and explain why we are seeing a rise in these complexes across the country?
* **Interviewer:** [Guest 1 Name], the article mentions a decline in “jeonse” prices (rental deposits) contributing to this trend. Can you elaborate on this connection and how it’s impacting contractors and property pricing?
* **Interviewer:** [Guest 2 Name], the article mentions Gwangmyeong specifically. What are the unique factors at play in this region compared to other areas experiencing similar trends?
**Section 2: Impact on Consumers and the Market**
* **Interviewer:** What are the implications for potential buyers? Are these lower prices truly a “good opportunity” as the article suggests, or are there hidden risks to consider?
* **Interviewer:** How significant is the role of lending regulations in this situation? Could these regulations be tightened further, and if so, what would the consequences be for the market?
* **Interviewer:** [Guest 1 Name], the article cites examples of trade-offs between location and price. How should potential buyers prioritize these factors when making a decision?
**Section 3: Looking Ahead: Future Trends and Predictions
* **Interviewer:** What does this trend tell us about the future of the South Korean real estate market?
* **Interviewer:** [Guest 2 Name], do you think this trend will continue, or are there external factors that could shift the landscape in the coming months or years?
* **Interviewer:** What advice would you give to individuals currently navigating the complex real estate market, whether they are looking to buy or sell?
**Conclusion:**
Thank you both for sharing your valuable insights on this important topic. We hope this discussion has illuminated the complexities of the “Mafi” phenomenon and provided viewers with a clearer understanding of the forces shaping the South Korean real estate market.
