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Real Estate Market Showing Signs of Rebound

Posted November. 08, 2010 10:38,   


“Cases of all new apartments being sold only to the most eligible bidders in the first round of public sale have occurred in succession.”

Sales of all new apartments and residential-office units exclusively to the most eligible buyers in the first round of public sale have been seen in Busan, Pangyo New Town in Gyeonggi Province, and Seoul’s Gangnam district.

Such sales had all but disappeared since this year’s first half due to a real estate slump but have returned. This has led to high expectations for a market rebound among experts.

According to construction sources Sunday, the results of the first round of public sale open only to the most qualified buyers found that 13,262 people submitted applications to purchase the 587 homes at the Haeundai Xi apartment complex in Busan put up for public sale by GS Engineering and Construction. This translates into a competition ratio of 23 to one.

Applications were submitted to buy all of the homes at the complex in the first round of public sale open to only the most qualified buyers. This has fueled speculation with industry insiders that a real estate boom will soon appear starting in the provinces.

Other experts say the rebound has begun spreading northward to the Seoul metropolitan region. In Pangyo New Town just south of Seoul, 634 prospective buyers submitted bids for 178 private rental homes at the apartment complex Summit Place, with each unit covering 131 to 134 square meters.

Each unit cost 693 million won (624,000 dollars) in security deposit and a monthly rent of 1.6 million won (1,441 dollars). The public sale of the homes was closed in the first round.

Prospective buyers agreed to pay nearly 700 million won (632,000 dollars) under the condition that they either pay 1 billion won (950,000 dollars) each to purchase a unit in five years or return the home for a refund.

In Seoul, Hyundai Development received applications to sell 230 residential-office units at Gangnam Station I-Park Oct. 21-22. A combined 7,521 prospective buyers submitted applications for a competition ratio of 32.7 to one.

All of the successful buyers signed deals to buy all of the units over the main contract phase, alarming company staff.

On the successful sell-off of new apartments to the most qualified buyers, real estate experts say the trend could be considered a sign of market recovery.

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