The apartment complex with the highest price increase in South Korea during the first half of this year was Gongdeok Raemian 5th Phase (Gongdeok-dong, Mapo-gu, Seoul, 794 households, completed in 2011). According to Real Estate 114, as of the end of June this year, the market price of Gongdeok Raemian 5th Phase was 40.91 million KRW per 3.3㎡, marking an 81.3% increase compared to the end of last year. This ranked first in price growth among apartment complexes across the metropolitan area and provinces.
In the metropolitan area, Jinju 3rd Complex (Pyeongnae-dong, Namyangju-si, 475 households, completed in 1987) and Punglim (Uman-dong, Paldal-gu, Suwon-si, 390 households, completed in 1989) showed price increases of 60.9% and 59.3%, respectively, ranking second and third in apartment price growth in the metropolitan area following Gongdeok Raemian 5th Phase.
In the provinces, Yongdu (Yongdu-dong, Jung-gu, Daejeon, 200 households, completed in 1985), Wangja (Banyeo-dong, Haeundae-gu, Busan, 390 households, completed in 1978), and Samik Green (Banyeo-dong, Haeundae-gu, Busan, 315 households, completed in 1985) recorded price increases of 61.2%, 59.1%, and 52.2%, respectively, securing the first, second, and third places in apartment price growth in the provinces.
By region, Sejong showed the highest house price increase nationwide in the first half of this year with a 9.2% rise. This was followed by Daejeon and Incheon, which recorded price increases of 6.5% and 6.0%, respectively.
In contrast, Seoul's house prices rose by only 3.0% during the same period. Nevertheless, it is noteworthy that Gongdeok Raemian 5th Phase, located in Seoul, ranked first in price growth among apartment complexes nationwide. What is the reason for this?
Gongdeok Raemian 5th Phase was completed as part of the Ahyeon New Town project. This New Town project began in 2003 when eight districts in Gongdeok-dong, Ahyeon-dong, and Yeomni-dong, Mapo-gu, Seoul, were selected as the '2nd phase New Town project area.' Among these eight districts, Gongdeok 5 District (Gongdeok Raemian 5th Phase) was the first to successfully complete redevelopment in 2011.
From the time of its pre-sale in 2009, Gongdeok Raemian 5th Phase attracted intense market attention as the first complex in Ahyeon New Town. It recorded an astonishing subscription competition rate of 164.8 to 1 in the first priority application, becoming the leading property in Mapo-gu at that time.
Its greatest advantages were excellent proximity to key business districts such as Gwanghwamun and Yeouido, and adjacency to transportation facilities including Gongdeok Station, Ahyeon Station, and Seoul Station. Additionally, its close proximity to major universities such as Yonsei University, Sogang University, Ewha Womans University, and Hongik University, Samsung C&T’s strategy of using high-end interior and exterior materials, and above all, the expectations for Ahyeon New Town contributed to its popularity.
There was also a period of stagnation. Right after moving in in 2011, the real estate market was hit by the aftershocks of the EU economic crisis, and among the eight project districts of Ahyeon New Town, seven districts except Gongdeok 5 District faced various difficulties and could not accelerate their projects.
Nevertheless, Gongdeok Raemian 5th Phase once again attracted strong market attention. In 2014, a turning point for the Ahyeon New Town project, the neighboring Ahyeon 3 District (Mapo Raemian Prugio) finally succeeded in a large-scale redevelopment project and began occupancy. This second complex in Ahyeon New Town rose as the leading property not only in Mapo-gu but also in the northern part of Seoul.
Subsequently, the 3rd, 4th, and 5th complexes of Ahyeon New Town?Yeomni 2 District (Mapo Xi 3rd Phase), Mapo-ro 6 District (Gongdeok SK Leaders View), which attracted 46,931 applicants for one canceled contract unit, and Yeomni 3 District (Mapo Prestige Xi), which surpassed the lowest and highest subscription scores to reach DH Xi Gaepo?also successfully completed redevelopment projects in sequence. The 6th complex of Ahyeon New Town, Ahyeon 2 District (Ahyeon I-Park SK View), is preparing for pre-sale after selecting a construction company.
Moreover, redevelopment and reconstruction projects in areas adjacent to Ahyeon New Town are actively underway. Newly built apartments have been constructed in the districts adjacent to the New Town, including Mapo-daero (east), Daeheung-ro (west), Baekbeom-ro (south), and Sinchon-ro (north), and Mapo-ro 3 District 1 Zone next to Gongdeok Raemian 5th Phase is also preparing for redevelopment.
Furthermore, the environment surrounding Gongdeok Raemian 5th Phase is undergoing a dramatic transformation from an 'old residential area' to an 'elegant new city within the urban center where high-quality residential life can be enjoyed.' Also, as the New Town rapidly rose, the demand for private academies exploded, turning the nearby Sinchon-ro (Ahyeon Station - Ewha Womans University Station - Sinchon Station section) and Baekbeom-ro (Gongdeok Station - Daeheung Station - Gwangheungchang Station section) academy districts into the 'number one academy districts in northern Seoul.' Now, it has secured not only transportation, environment, and commercial districts but also educational conditions.
Shin Jin-su (44), a resident of Gongdeok Raemian 5th Phase and CEO of Philip Communications, stated, "When new complexes are completed next to existing complexes within a qualitatively unified area, various convenience facilities gradually follow, new relationships are established among them, and eventually a newly revitalized village, a New Town, is born." He added, "As Ahyeon New Town is increasing its value through this process, it seems that the value of our complex, which first settled in the New Town, has also risen accordingly," attributing the achievement of Gongdeok Raemian 5th Phase ranking first in nationwide price growth to the neighboring communities.
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