New Year Mokdong New Town 7 Complex 20-Pyeong Units Sold for 1.595 Billion KRW
Earlier, Small Apartments in Non-Gangnam Areas Like Mapo Raemian Prugio Also Exceed 1.5 Billion KRW
No Loans Over 1.5 Billion KRW... Yet Seoul Housing Prices Rise Amid 'Smart One-Home' Craze
[Asia Economy Reporter Onyu Lim] Cases of small apartments exceeding 1.5 billion KRW in price are rapidly emerging in non-Gangnam areas of Seoul such as Mapo and Yangcheon districts. Apartments priced over 1.5 billion KRW are considered the benchmark for ‘high-priced housing’ because mortgage loans from financial institutions are not available for such properties.
According to the Ministry of Land, Infrastructure and Transport’s Real Transaction Price Disclosure System on the 21st, a 59㎡ (exclusive area) apartment in Mokdong New Town 7th Complex was traded for 1.595 billion KRW on the 9th. This is the first time a small apartment under 60㎡ in Mokdong has been traded for over 1.5 billion KRW. After being traded for 1.495 billion KRW in July last year, the price surpassed 1.5 billion KRW for the first time in six months. This complex, which is undergoing reconstruction, has conditionally passed the first safety inspection. A representative from Mokdong A Real Estate Agency explained, "Demand is high but there are no listings, so even properties with existing leases are being offered at asking prices up to 1.6 billion KRW."
In Ahyeon-dong, Mapo-gu, a small apartment also surpassed 1.5 billion KRW in actual transaction price. A 59㎡ unit in Mapo Raemian Prugio was sold for 1.535 billion KRW on December 26 last year. This price is 85 million KRW higher than the previous highest price of 1.45 billion KRW in November. Additionally, apartments of similar size in Heukseok-dong, Dongjak-gu’s Acro River Heim, Ichon-dong, Yongsan-gu’s Hangaram, and Hongpa-dong, Jongno-gu’s Gyeonghuigung Xi 2nd Complex were also consecutively traded at prices exceeding 1.5 billion KRW.
The 1.5 billion KRW mark has been recognized as the standard for ultra-high-priced apartments and a psychological resistance level for Seoul apartment prices. This is because the government has completely banned mortgage loans for apartments priced over 1.5 billion KRW within speculative overheated districts.
The overall upward trend in Seoul apartment prices continues. According to the Korea Real Estate Board, the weekly price increase rate for Seoul apartments in the first week of January rose from 0.06% the previous week to 0.07%. This is the highest weekly increase rate since the second week of July last year (0.09%), right after the announcement of the July 10 measures.
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