Accompanied by rising prices... Advantages of Han Riverfront and New Buildings
Expectations for Banpo's Leading Apartments... "Prices Will Rise More Next Year"
The jeonse prices of Raemian One Bailey in Banpo-dong, Seocho-gu, Seoul (an integrated reconstruction of Sinbanpo 3rd and Gyeongnam Apartments) are rising despite the move-in period, drawing attention. Expectations that it will surpass the nearby Acro River Park (Aripak) to become the leading apartment in Banpo amid the housing price rebound are intertwined with the view that jeonse prices will continue to rise regardless of supply.
According to local real estate agencies (hereinafter referred to as agents) on the 1st, jeonse listings for Raemian One Bailey with a net area of 59㎡ start from the 1.1 billion KRW range, excluding some lower floors. The jeonse price for the 84㎡ unit has formed from the 1.4 billion KRW range, rising about 100 million KRW since the pre-inspection last month.
An agent from Agency A said, "Jeonse transactions have been occurring since May, and prices are gradually increasing," adding, "Many people are surprised as they expected prices to fall around the move-in period." Typically, as the move-in date approaches, owners trying to secure the remaining payment lower jeonse prices, and in large complexes, price competition intensifies, creating the formula 'move-in period = jeonse price drop.' However, Raemian One Bailey, which started move-ins on the 31st of last month, is seeing jeonse prices rise instead.
It is analyzed that advantages such as location, school districts, and being a new apartment have influenced this trend. Located by the Han River, close to Gyeseong Elementary and Sinbanpo Middle Schools, and equipped with various premium services including the home platform 'Homenic,' it also plans to launch a resident-exclusive credit card linked with Samsung Card and Shinsegae. There is also an expectation that it will inherit the status of Aripak and become the leading apartment in Banpo.
There is also a view that most of the jeonse supply comes from union members and is not urgent enough to rush listings from a financial perspective. Only 225 out of the total 2,990 households were general sales units in Raemian One Bailey. An agent from Agency B said, "Owners who relocated during the construction period are currently leasing jeonse considering their current residence contract periods," adding, "Almost all affordable units in the 20-30 pyeong range have been taken, so there are not many left."
Agents and industry experts also believe that jeonse prices of Raemian One Bailey will not fall in terms of timing. As housing prices recover mainly in the Gangnam 3 districts (Gangnam, Seocho, Songpa), jeonse prices are also rising accordingly. In particular, Seocho-gu recently became the second district after Songpa-gu among Seoul's 25 autonomous districts to show an annual cumulative increase in price change rates.
Accordingly, the move-in rights prices of Raemian One Bailey have also risen considerably. Last month, the 84㎡ unit was traded at 4.59 billion KRW, and the 59㎡ unit's actual transaction price rose from 2.465 billion KRW in June to 2.89 billion KRW this month.
The volume of move-ins is also an important factor. The move-in for Raemian One Pentas (641 households, Sinbanpo 15th reconstruction) has been postponed from January to June next year, and there are no other scheduled move-ins in Banpo next year. The situation is similar across Seoul. According to Zigbang, the scheduled move-in volume in Seoul next year is 11,332 households, which is more than halved compared to this year (30,312 households).
Ham Young-jin, head of Zigbang Big Data Lab, said, "The average jeonse price for newly built apartments within 5 years in Banpo is around 1.2 billion KRW, so Raemian One Bailey is not an outlier," adding, "Along with product competitiveness, the overall decrease in move-ins in Seoul is affecting both housing and jeonse prices. I expect prices to rise further next year."
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