Move-in Starts from the 2nd... Highest Ever Jeonse Prices for Similar Area
6 Billion Won Higher Than Sale Prices, More Expensive Than Ultra-Luxury Complexes Like Hannam The Hill
Apartment Prices in Seongsu-dong Soar Due to Halo Effect as Emerging Wealthy Neighborhood
'Acre Seoul Forest' bird's-eye view.
[Asia Economy Reporter Onyu Lim] 'Jeonse price alone is 3.7 billion KRW.' The residential-commercial complex 'Acro Seoul Forest' built in Seongsu-dong, Seongdong-gu, Seoul, has established itself as one of Seoul's ultra-luxury apartments immediately upon move-in.
According to DL E&C (formerly Daelim Industrial Construction Division) on the 7th, Acro Seoul Forest recently completed construction and has been welcoming residents since the 2nd of this month. The complex consists of two apartment buildings with 280 households and one building for office, retail, and cultural facilities. The complex attracted attention from the time of sale due to its view of the 1.15 million square meter Seoul Forest as well as the Han River. Currently, rental inquiries from high-income professionals and famous celebrities are ongoing, and jeonse and monthly rent transactions are actively taking place.
The jeonse price has soared beyond large complexes in the Gangnam area to reach an all-time high. According to the Ministry of Land, Infrastructure and Transport’s real transaction disclosure system, a 159㎡ (exclusive area) apartment in this complex signed a jeonse contract in December last year for around 3.7 billion KRW. This is more than 600 million KRW higher than the sale price of 3.04 billion KRW. It is also the highest jeonse price for apartments of similar size in Seoul.
Last year, the only jeonse transactions in Seoul with higher prices were Cheongdam Upper House in Cheongdam-dong, Gangnam-gu, 197㎡ (4 billion KRW), and Acro River Park in Banpo-dong, Seocho-gu, 200㎡ (4 billion KRW). A similarly sized Acro River Park apartment of 129㎡ was traded for 3.35 billion KRW in December last year. The jeonse price of Hannam The Hill in Hannam-dong, Yongsan-gu, the most expensive apartment nationwide, also did not reach Acro Seoul Forest’s level, with a maximum of 3.5 billion KRW (235㎡).
An official from a high-end residential complex specialized real estate agency, A Real Estate Office, said, "The high occupancy rate and inquiries from corporate executives have driven jeonse prices up," adding, "The jeonse asking price for 159㎡ units has reached up to 3.9 billion KRW, and the largest units are priced over 5 billion KRW." Although transactions are not occurring due to resale restrictions, it is expected that the sale price for 159㎡ units will be around 5 billion KRW.
Currently, the Ttukseom area of Seongsu-dong is rapidly transforming into a residential area through active development projects. High-rise residential-commercial complexes such as Galleria Foret and Trimage have already been established, and Booyoung Housing plans to build a 49-story residential-commercial complex and hotel in the nearby Ttukseom district unit plan zone 4. Redevelopment of Seongsu Strategic Maintenance District zones 1 to 4 along the Han River is also underway. Apartment prices in the surrounding area clearly benefit from the development halo effect. For example, the 84㎡ Ssangyong apartment in Seongsu-dong, despite being an old complex, changed hands at the highest price of 1.32 billion KRW in October last year, an increase of 370 million KRW compared to a year earlier. The new apartment Seoul Forest Hillstate 117㎡ also recorded a new high price of 1.89 billion KRW in December last year.
A real estate industry official said, "It is hard to find a location with both Seoul Forest and Han River views outside of Seongsu-dong," adding, "The transportation network is also excellent, and once the aging Seongsu Strategic District is redeveloped, this area will be completely transformed into an affluent neighborhood."
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