Highest Price Increase Rate Among 25 Districts
Amsa Pryor Palace 84㎡
Price Jumped 1.8 Billion KRW to 10.3 Billion KRW
Godeok Raemian 84㎡ Also Up by 1 Billion KRW
[Asia Economy Reporter Donghyun Choi] Apartment prices in the Gangdong-gu area are fluctuating due to the government's regulatory balloon effect and successive development prospects. As Jamsil-dong in Songpa-gu was designated as a land transaction permission zone under the June 17 real estate measures, demand has shifted to surrounding areas. Additionally, expectations for the introduction of the metropolitan area express railroad (GTX) line and plans for industrial complex development have overlapped, creating an atmosphere where record-high apartment prices are emerging one after another.
According to frontline brokerage firms and the Ministry of Land, Infrastructure and Transport's actual transaction price system on the 7th, the 84㎡ apartment at 'Pryor Palace' in Amsa-dong, Gangdong-gu, was recently sold for 1.03 billion KRW. Compared to the previous transaction price of 850 million KRW, this is an increase of 180 million KRW. The transaction price of the 102㎡ unit at 'Lotte Castle First' in the same neighborhood also rose from 1.25 billion KRW to 1.3 billion KRW. Nearby areas show similar trends. The actual transaction price of the 84㎡ unit at 'Godeok Raemian Hillstate' in Godeok-dong, which was 1.3 billion KRW, rose to 1.4 billion KRW, and the 84㎡ unit at 'Gangil River Park 8 Complex' in Gangil-dong increased from 780 million KRW to 850 million KRW.
The upward trend in housing prices in Gangdong-gu is also prominent in private statistics. According to Real Estate 114, the apartment price increase rate in Gangdong-gu for the first week of this month (as of the 3rd) was 0.24%, the highest among the 25 autonomous districts in Seoul along with Nowon-gu. The increase rate over the past two weeks was 0.47%, ranking first among the Gangnam 4 districts (Seocho, Gangnam, Songpa, and Gangdong-gu). As Jamsil-dong in Songpa-gu and Daechi, Cheongdam, and Samsung-dong in Gangnam-gu were designated as land transaction permission zones under the June 17 measures, demand appears to be flowing into Gangdong-gu, which is part of the Gangnam 4 districts but outside the regulatory scope. A representative of brokerage firm A in Gangdong-gu stated, "The asking prices have risen by nearly 50 million KRW in just the past two weeks, mainly in newly built complexes."
Development prospects are also fueling the rise in housing prices. The Seoul Metropolitan Government recently announced plans to create an engineering complex on a 78,000㎡ site in Sangil-dong. This complex, with a total project cost of 194.5 billion KRW, will be the fourth industrial complex established in Seoul, following the Seoul Digital National Industrial Complex (G-Valley), Seoul Onsu General Industrial Complex, and Magok General Industrial Complex.
In particular, expectations for the GTX D line, whose development plan has not yet even been outlined, have added to the excitement. With Jin Sun-mi, a local district member of the Democratic Party of Korea, appointed as the chairperson of the Land, Infrastructure and Transport Committee, there is speculation that the possibility of attracting the GTX line has increased. A resident of Gangdong-gu said, "Just as former Land Committee Chairperson Park Soon-ja brought the Shinansan Line to her constituency (Ansan) during the 20th National Assembly, the GTX D line should be introduced to this area with poor transportation infrastructure." Earlier last month, Gangdong-gu Office also became the first Seoul autonomous district to start a research project for the introduction of the GTX D line.
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