No·Do·Gang 84㎡ Also 1 Billion Won... The Old Saying '1 Billion = High-End Housing' Is Outdated

Junggye-dong Cheonggu 3rd Complex 84㎡ Sold for 1.03 Billion KRW
Nearby Complexes Also Approaching 1 Billion KRW

Rising Record Prices Since 6·17 Measures
Geumcheon, Gwanak, and Guro Followed by Nowon, Dobong, and Gangbuk Matching Housing Prices
Gwangmyeong Cheolsan Raemian Also Nearing 1 Billion KRW

Calls to Adjust the 900 Million KRW High-Price Housing Standard

[Asia Economy Reporter Lee Chun-hee] Following 'Geum-Gwan-Gu (Geumcheon, Gwanak, Guro Districts)', an 84㎡ (exclusive area) apartment in 'No-Do-Gang (Nowon, Dobong, Gangbuk Districts)' has also surpassed the 1 billion KRW transaction price. In Gyeonggi Gwangmyeong City, transaction prices are approaching 1 billion KRW not only in the Gwangmyeong Station area but also around Cheolsan-dong, indicating that the rising trend is spreading beyond Seoul's core areas to the outskirts. In Seoul, the era where '1 billion KRW' is no longer considered a high-priced home but rather the average housing price has officially begun.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 7th, an 84㎡ apartment in Cheonggu 3rd Complex, Junggye-dong, Nowon-gu, was sold for 1.003 billion KRW on the 13th of last month. While mid-to-large homes over 100㎡ in this area frequently traded above 1 billion KRW, this is the first time a 'standard housing size' apartment under 85㎡ has exceeded 1 billion KRW.

A representative from nearby A real estate agency said, "This property faces south and is favored by buyers," adding, "Another property recently traded at 1.035 billion KRW, but the transaction has not yet been officially registered." The complex consists entirely of 780 units, all with an 84㎡ floor area.

The complex is located right next to Eunnhang Intersection in Junggye-dong, one of Seoul's three major academy districts. It is adjacent to elementary and middle schools, and a high school is just across the street, making it a leading apartment in terms of price in the area.

In February, the announcement of the Dongbuk Line construction connecting Wangsimni to Sanggye caused prices to rise once again. This is because a 'Eunnhang Intersection Station' is planned right next to the complex. At that time, the transaction price rose to 990 million KRW but did not exceed 1 billion KRW.

Since apartment prices in the Nowon-gu area have been rising together recently, it is expected that other complexes will soon join the '1 billion KRW club.' A representative from B real estate in Junggye-dong said, "There are reports that Geonyeong 3rd Complex, right next to Cheonggu 3rd, has also traded above 1 billion KRW," adding, "Most 84㎡ apartments in this area are trading above 900 million KRW."

According to the Korea Real Estate Board's weekly apartment sales price index, housing prices in Nowon-gu rose 0.08% compared to the previous week as of the 29th of last month, continuing a five-week upward trend. Nearby Gangbuk-gu saw the highest increase in Seoul at 0.10%, and Dobong-gu also rose by 0.08%.

A representative from C real estate in Junggye-dong said, "Prices seem to be rising even after the government's June 17 real estate measures," adding, "As soon as listings appear, they are quickly sold, and record prices are being set in nearby complexes."

Rising Trend Spreads to Seoul's Surrounding Metropolitan Areas... Gwangmyeong Also Eyes 1 Billion KRW for 84㎡

'Lotte Castle Gold Park,' the first in Geumcheon-gu to record an actual transaction price exceeding 1 billion KRW.

In January, Geumcheon-gu saw the first-ever transaction exceeding 1 billion KRW across all sizes, showing that Geum-Gwan-Gu and No-Do-Gang, which had been left out of the housing price rise, are now catching up with other regions after the June 17 measures.

This phenomenon is also seen in Gyeonggi Gwangmyeong City. According to local real estate industry sources, the Raemian Xi 84㎡ in Cheolsan-dong has recently reached a transaction price of 980 million KRW. A representative from D real estate said, "The asking price has already surpassed 1 billion KRW," adding, "The transaction price is expected to exceed 1 billion KRW soon." While many transactions exceeding 1 billion KRW have already occurred in Iljik-dong near the KTX Gwangmyeong Station area, such prices have not yet been recorded in the existing downtown areas like Gwangmyeong, Cheolsan, and Haan-dong.

Industry voices are calling for a revision of the current 900 million KRW threshold for high-priced homes. This is because the median price of Seoul apartments has already exceeded 900 million KRW, and in most areas of Seoul, 84㎡ apartments?the standard housing size?are trading above 1 billion KRW. According to KB Kookmin Bank, the median price of Seoul apartments as of last month was 918.12 million KRW.