28 Land Transaction Permits Issued in Apgujeong, Yeouido, Seongsu, and Mokdong
Only 15 Actual Transactions Registered in Mokdong New Town
Over Half of These Are Record Prices, with Unregistered Apgujeong and Yeouido Also Estimated at Record Prices
[Asia Economy Reporter Lim Onyu] The effectiveness of the land transaction permission zones designated to block speculative demand in major reconstruction and redevelopment areas in Seoul, including the Gangnam area, has proven to be only 'half effective.' Although transactions sharply declined during the two months following the designation, the price increases themselves were not curbed.
According to the Seoul Real Estate Information Plaza on the 30th, from April 27, when the land transaction permission zones took effect, until now, a total of 28 land transactions have been approved in Apgujeong-dong, Gangnam-gu; Yeouido-dong, Yeongdeungpo-gu; Mok-dong and Sinjeong-dong, Yangcheon-gu; and Seongsu-dong, Seongdong-gu. Among these, 23 transactions occurred in the Mok-dong New Town apartments, the most frequent, followed by 2 in Apgujeong Hyundai apartments, 1 in Yeouido Hanyang apartments, and 2 in the Seongsu strategic maintenance zone.
The actual number of transactions reported in the Ministry of Land, Infrastructure and Transport's Real Transaction Price Disclosure System is even lower. Only 15 transactions have been made in the Mok-dong New Town apartments. There have been no reported transactions yet in Apgujeong, Yeouido, or Seongsu areas.
Previously, Seoul Mayor Oh Se-hoon designated these areas as land transaction permission zones as the rapid rise in housing prices driven by expectations of reconstruction and redevelopment continued. The intention was to block speculative demand inflows and prevent abnormal price hikes. Judging by transaction volume alone, the designation of permission zones appears to have been effective.
However, despite the transaction freeze, record-high prices continue to be set. In the case of Mok-dong New Town apartments, where prices can be confirmed through reported transactions, more than half of the 15 transactions?8 in total?were record-high contracts. For example, a 53.88㎡ (exclusive area) unit in New Town Complex 7 changed hands for 1.6 billion KRW on the 19th of this month, which is 100 million KRW higher than the previous highest price of 1.5 billion KRW recorded in March. Earlier this month, on the 1st, a 64.98㎡ unit in Complex 3 was sold for 1.67 billion KRW, 40 million KRW higher than the previous transaction price of 1.63 billion KRW.
Although there are no reported transactions for the 105㎡ unit in Yeouido Hanyang, it is known to have been contracted at 1.96 billion KRW, which is 100 million KRW higher than the previous high of 1.86 billion KRW recorded in February. In Apgujeong Hyundai 13th complex, a 108㎡ unit reportedly changed hands for 3.7 billion KRW, which is 600 million KRW higher than the previous highest price of 3.1 billion KRW.
A representative from Mok-dong A Real Estate Agency (licensed) said, "While there are cases of transactions at lower prices depending on location and condition, the expectation of reconstruction activation remains strong, and asking prices far exceed those before the designation of the permission zones."
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