Kumho Complex 1 in Yangji Village, Bundang-gu, Seongnam. [Naver Road View]
Kumho Complex 1 in Yangji Village, Bundang-gu, Seongnam. [Naver Road View]

Interest in a Seongnam apartment complex undergoing reconstruction has grown as the sale of a unit owned by President Lee Jae Myung nears completion.

Lee listed the property in February at below-market price, saying the move reflected his commitment to stabilizing the real estate market. The unit was the first home he and his wife purchased together, bought during the IMF financial crisis.

The property — a 164-square-meter unit in Kumho Complex 1 of Yangji Village — has reportedly sold roughly five months after Lee put it on the market. Lee bought the apartment in 1998 for 360 million won ($242,000) and held it for about 29 years before selling it for approximately 2.9 billion won.

At a Cabinet meeting on Tuesday, Lee acknowledged the sale, saying, "I no longer own a home." Asking prices for other units of the same size currently on the market stand at 3 billion to 3.1 billion won. A 164-square-meter unit in the complex changed hands at a record 3.03 billion won in late April, more than 500 million won above the previous year's level.

The price increase is largely attributed to Yangji Village's inclusion as a priority reconstruction district under the first-generation new town redevelopment initiative. The Yangji Village integrated reconstruction zone — comprising Kumho complexes 1 and 3, Cheonggu Complex 5, Hanyang Complex 5, the Hanyang mixed-use building, and in-complex retail, totaling 4,392 units — is slated to be redeveloped into a 37-story, 6,839-unit development upon completion.

Yangji Village reconstruction zone map [Seongnam city notice]
Yangji Village reconstruction zone map [Seongnam city notice]

Yangji Village has been accelerating the project after designating Daesin Asset Trust as the preliminary project operator through open competitive bidding in May. On June 30, the Yangji Village integrated reconstruction residents' representative body submitted an application to Seongnam city for formal project operator designation, with the official notice expected as early as late July. A representative of the residents' body said the group aims to hold a general assembly of landowners and property holders within the year, select a contractor in the first half of next year, obtain management and disposal authorization in the second half, and break ground in 2028.

Bundang-gu in Seongnam was designated a regulated zone and speculative overheating district under the government's Oct. 15 real estate measures last year, subjecting it to restrictions including limits on the transfer of association membership status. Because the Yangji Village integrated reconstruction site operates under a trust-based model, the date of the official project operator designation notice becomes the regulatory cutoff point. After that date, exceptions allowing the transfer of membership status apply only to single-homeowners who have held the property for at least 10 years and lived there for at least five.

In Kumho Complex 1, an 84-square-meter unit set a new high of 2.43 billion won on June 8 — and no units have been listed for sale since. In Hanyang Complex 5, which has the most units within the redevelopment zone, the asking price for the smallest available unit, at 28 square meters, stands at 1.15 billion won. Asking prices for 84-square-meter units are hovering around 2.5 billion won; that floor plan set a record last month when a 16th-floor unit sold for 2.3 billion won.

The head of a real estate agency in Sunae-dong said that Kumho Complex 1 and Hanyang Complex 5 are particularly sought after because of their proximity to Sunae Station and the possibility of an in-place reconstruction. "Among prospective buyers who prioritize views, many look at Cheonggu in Yangji Complex 2 for its central park views," the agent said. "Mixed-use units tend to be considered lower priority because of their smaller land shares."

Industry insiders say that, given the time required for land transaction permit approvals, ordinary units whose membership status can still be transferred will effectively be off the market after August. One industry insider said most sellers who wanted to close before the deadline completed their transactions in May or June, adding: "Still, I understand there are some long-term retiree residents in the complex who are looking to sell even after the project operator designation notice comes out."


hope@heraldcorp.com