Apgujeong Hyundai Tops 10 Billion Won Again; Shinhyundai 12 Sets 11.25 Billion Won Record

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an "artificial intelligence (AI)-based customized news recommendation and summary service" developed with support from the Korea Press Foundation. It selects and provides six customized news items by reader type.

1. Apgujeong Hyundai Tops 10 Billion Won Again

Key Summary: Prices of ultra-high-end apartments in Apgujeong-dong, which fell sharply on fire sales just before the heavier capital gains tax on multi-home owners took effect, are recovering rapidly. Shinhyundai 11, at 183㎡ of exclusive area, sold for 10.5 billion won this month, rebounding 1.5 billion won from its April low of 9 billion won, while Shinhyundai 12, at 182㎡ of exclusive area, set a new record at 11.25 billion won. Meanwhile, land transaction permits in Gangnam's three districts have fallen to less than half of April's level, with both buyers and sellers maintaining a wait-and-see stance until the tax reform plan scheduled for later this month is announced. Ham Young-jin, head of Woori Bank's research lab, said prices are unlikely to fall significantly given the continued shortage of new supply and rising presale prices, but added that market trends will be redetermined depending on the contents of the tax reform plan.

2. "Shackles on Regional Development Released"…Development Winds Warm for Goyang, Pyeongtaek, Susaek

Key Summary: The Ministry of National Defense announced on the 21st that it will lift or ease restrictions on 29.16 million㎡ of military facility protection zones, an area 10 times the size of Yeouido. In Goyang, 770,000㎡ around Beopgot-dong, Daehwa-dong, and Janghang-dong were removed from restricted protection zones, giving a green light to securing self-sufficiency functions and attracting businesses in the Changneung district. The lifting of 1.33 million㎡ around the ammunition depot in Pyeongtaek's Godeok International Planning District is expected to improve conditions for developing residential areas behind Samsung Electronics. A 19.82 million㎡ flight safety zone at the Susaek airfield spanning Seoul's Mapo and Eunpyeong districts and the Goyang area is also set to be lifted in line with a revision of the enforcement decree in the second half of this year, raising expectations that major development projects such as the Susaek District 14 urban public housing mixed-use project will accelerate. The lifting and easing of protection zones takes effect after the official gazette notice on the 22nd.

3. Growing Controversy Over Lee's Bundang Home "1.7 Billion Won Mortgage"

Key Summary: Controversy is growing after it emerged that President Lee Jae-myung, in selling his Bundang apartment for 2.9 billion won, established a collateral mortgage of 1.77 billion won, equal to 61% of the sale price. In the industry, some analysts say the transaction was rushed to secure full value, as the complex is set for a project implementer designation notice later this month, and transferring ownership after the notice would make the property subject to cash settlement rather than an occupancy right. While not illegal, critics have raised the point that, in a situation where loans on high-priced apartments worth 2.5 billion won or more are limited to 200 million won, the arrangement effectively allowed the buyer to bypass lending regulations through a private financing method between individuals. Considering that the same housing type traded at 3.03 billion won in April, the industry view is that the deal was closed at a good price rather than as a fire sale.

4. Trust Registrations for Seoul Collective Buildings Surge 55%

Key Summary: The number of applications for ownership transfer registrations (trust) for collective buildings in Seoul in the first half of this year came to 15,318, a 55.1% surge from the same period a year earlier. By district, Gangnam-gu led with 2,344, followed by Songpa-gu with 1,582 and Seocho-gu with 1,250, with Gangnam's three districts accounting for 33.8% of the total. This is analyzed as the effect of increased use of trust arrangements in reconstruction and redevelopment projects, along with expanded use of trusts for asset management, inheritance, and gifting, as well as collateral trusts for loan security. The analysis is that the trend of trust use is clearly increasing, centered on the Gangnam area.

5. GS E&C Seocho Tower Sale Gets Under Way

Key Summary: The sale process has begun for GS E&C Seocho Tower (five basement floors to 14 above-ground floors, gross floor area of 29,784.83㎡), a large office facility in the southern part of Seoul's Gangnam Business District (GBD). A consortium of Genstar Mate and S-1 was selected as the sale advisor and is expected to soon begin the full process, including distribution of the investment memorandum (IM). It is located on the wide-area transport axis of the Gyeongbu Expressway and Nambu Beltway, and the surrounding area is rich in development boosts such as the opening of the GTX-C line and the Yangjae Station mixed-use development. As a target of the Seoul city's "Growth Potential Zone Revitalization Project," a value-add strategy is possible, and stable rental income is currently secured, with GS E&C and Indong F&N leasing it as their headquarters.

6. Kyongnam Bank to Restrict Mortgage Loan Applications Through Brokers From September

Key Summary: BNK Kyongnam Bank will effectively halt new mortgage loan applications through brokers from September disbursements onward to manage its total volume of household loans. BNK Busan Bank has already stopped accepting broker-referred mortgage loans this month, and Jeonbuk Bank and iM Bank have taken similar measures, in a trend of conservative lending operations across regional banks. The five major commercial banks had also already used up 78% of their annual household loan growth target as of the 9th, and observers say pressure from financial authorities to manage total volumes will continue into the second half.