Mapo Apartment Rights Increase by 150 Million KRW in One Month
Local Buying Demand Returns to Seoul... Gangbuk Housing Prices Expected to Continue Rising
[Asia Economy Reporter Onyu Lim] For the first time, an 84㎡ (exclusive area) apartment price in Mapo-gu, Seoul, has reached the 2 billion KRW mark. Following the implementation of the new Lease Protection Act, jeonse prices have pushed up sale prices, and with the expansion of regulated areas causing provincial buyers to return to Seoul, it is expected that housing prices in the Gangbuk area will continue to rise.
According to frontline real estate brokerage industry sources on the 21st, on the 19th, a pre-sale right for an 84㎡ unit at Mapo Prestige Xi in Yeomni-dong, Mapo-gu, Seoul, was traded for 2 billion KRW. Although it has not yet been registered in the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system, the price increased by 150 million KRW within a month after changing hands for 1.85 billion KRW on the 14th of last month. This is the first time that the actual transaction price of an 84㎡ apartment in Mapo-gu has exceeded 2 billion KRW. It is also the third case in the entire non-Gangnam area excluding the three Gangnam districts, following Trimage in Seongsu-dong, Seongdong-gu, and Acro River Heim in Heukseok-dong, Dongjak-gu.
Mapo Prestige Xi is a complex redeveloped from Ahyeon New Town Yeomni 3 District, consisting of a total of 1,694 households. It has excellent accessibility to downtown and major business centers such as Yeouido, and is close to elementary, middle, and high schools, which has caused the pre-sale right prices to rise sharply.
On-site, it is expected that cases of 84㎡ units exceeding 2 billion KRW will continue in the Mapo-gu area, starting with Mapo Prestige Xi. Currently, in the Gangbuk area, actual transaction prices are approaching 2 billion KRW for properties such as Hangaram in Ichon-dong, Yongsan-gu; Raemian Wellstream in Hyeonseok-dong, Mapo-gu; Raemian Oksu Riverzen in Oksu-dong, Seongdong-gu; and Gyeonghuigung Xi in Pyeong-dong, Jongno-gu.
Despite various government regulations aimed at stabilizing housing prices, the soaring prices in the Gangbuk area have raised questions about the effectiveness of these regulations. There are even criticisms that the regulations have exacerbated market distortions. After a pause following panic buying, Seoul apartment transactions have regained momentum since the end of July, following the implementation of the new Housing Lease Protection Act, which includes the right to request contract renewal and caps on rent increases. According to the Seoul Real Estate Information Plaza, the number of apartment transactions in Seoul in November was 5,633, exceeding October’s 4,367 by more than 1,000 transactions despite the reporting deadline still remaining. In Mapo-gu as well, transactions increased significantly from 178 in October to 239 in November.
A real estate industry official said, "With abundant liquidity due to low interest rates and nationwide regulations imposed, the investment merit of Seoul has become clearer," adding, "Provincial multi-homeowners may expand their purchases of Seoul apartments."
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