Ramian Gongdeok 5th, Continuous Record Highs Despite 1216 Measures and COVID-19... Meanwhile, Mid-to-Large Units Also Sold at Bargain Prices

Since its completion in 2011, marking the beginning of the Ahyeon New Town era, 'Raemian Gongdeok 5th' has been attracting attention in the real estate market. While there have been consecutive reports of record-high prices being broken even after the 1216 measures, contradictory phenomena have occurred in the same complex around the same period, with properties previously valued in the 1.7 billion KRW range before the 1216 measures being traded for less than 1.5 billion KRW.

The upward trend in the apartment market led by the Gangnam 3 districts (Gangnam, Seocho, Songpa) and the Gangbuk 3 districts (Mapo, Yongsan, Seongdong) has slowed down due to the government's 1216 measures and the COVID-19 pandemic. According to KB Real Estate Live On, Seoul's sales outlook index recorded 99 in March. This is the first time in nine months that the index has fallen below 100.

Despite this situation, Raemian Gongdeok 5th continues to break its previous highest transaction prices. According to the Seoul Real Estate Information Plaza, in late December last year, a 59㎡ unit in this apartment complex was traded for 1.18 billion KRW (12th floor). This was the first time a record high was broken among Mapo district apartments after the 1216 measures. Subsequently, the same size units were sold for 1.195 billion KRW (9th floor) in early January, 1.21 billion KRW (11th floor) in mid-January, 1.217 billion KRW (9th floor) in late February, and even a lower-floor unit was traded for 1.22 billion KRW (3rd floor) in early March, setting new record prices with each transaction despite the sluggish market atmosphere.

Currently, there are almost no new listings at Raemian Gongdeok 5th, but the asking prices for royal floor units by area are evaluated at approximately ▲ 1.27 billion KRW for 59㎡ (previous transaction price 1.22 billion KRW, early March this year) ▲ 1.51 billion KRW for 84㎡ (previous transaction price 1.42 billion KRW, early December last year) ▲ 1.73 billion KRW for 114㎡ (previous transaction price 1.58 billion KRW, mid-November last year).

On the other hand, after the 1216 measures, low-floor urgent sale units of 114㎡ at Raemian Gongdeok 5th were traded at prices significantly lower than the market value. Located in Gongdeok-dong, Mapo-gu, these 114㎡ units are situated on flat land close to Mapodaero and various convenience facilities, earning a reputation in the market for having 'very excellent location.' Nevertheless, in January, a unit previously valued at over 1.7 billion KRW was sold for less than 1.5 billion KRW, specifically 1.48 billion KRW (1st floor). The actual transaction price gap between the 59㎡ and 114㎡ units narrowed to just 260 million KRW.

Real estate experts analyze that the continuous record-breaking prices at Raemian Gongdeok 5th and the news of urgent sales of medium to large units will have a meaningful impact on the complexes around Mapo-gu, where transactions have been scarce for some time.

Geum Yunhwa (37, lawyer), CEO of 'Law Office Jaeyul,' which has handled real estate investment and related cases such as fraud, embezzlement, and breach of trust near the Seoul Western District Court, said, “Looking at the transactions of small units under 1.5 billion KRW at Raemian Gongdeok 5th, a representative popular complex in Mapo-gu, it seems that the market energy for key complexes in core areas is still alive,” but cautiously predicted, “The market for ultra-high-priced apartments over 1.5 billion KRW, where loans have been completely banned due to the 1216 measures, may remain unstable with repeated price fluctuations for the time being.”