'One Week of Mayor Oh Se-hoon'... Soaring Reconstruction Apartment Prices by 200 to 300 Million KRW Amid High Expectations

[Image source=Yonhap News]

[Asia Economy Reporter Seoyoung Kwon] After a period of stabilization, apartment prices in Seoul are showing signs of fluctuation again, centered around reconstruction complexes, just one week after the Seoul mayoral election.

Mayor Oh Se-hoon had previously pledged to ease real estate-related regulations. With expectations that reconstruction regulations will also be relaxed, apartment prices in reconstruction areas such as Mokdong, Gangnam, and Yeouido have risen by as much as 200 million to 300 million KRW, and some homeowners are listing their properties, indicating a gradual overheating trend in the real estate market.

According to the Korea Real Estate Board on the 18th, the apartment price index in Seoul increased from 0.05% in the first week of April to 0.07% in the second week. After recording 0.10% in the first week of February, the rate of increase had been steadily declining, but it has now expanded again 10 weeks after the Seoul mayoral by-election.

This price increase phenomenon is mostly observed in areas with reconstruction complexes. Apartment prices in Nowon-gu rose from 0.09% to 0.17%, Songpa-gu from 0.10% to 0.12%, and Yeongdeungpo-gu from 0.04% to 0.07%.

The same applies to Apgujeong-dong in Gangnam-gu. In particular, reconstruction complexes such as Hyundai Apartments, which had been accelerating the establishment of associations since the end of last year, have seen a boost in the speed of price increases around the time of Mayor Oh’s election. Additionally, reconstruction complexes in Mokdong, Yangcheon-gu; Yeouido-dong, Yeongdeungpo-gu; and Jamsil-dong, Songpa-gu have also joined the upward trend in apartment prices.

As Mayor Oh expresses concern over the overheating trend in apartment prices centered on reconstruction complexes and has ordered measures to address it, attention is focused on whether this upward trend will spread to general apartment complexes or remain a temporary expectation.