Yongsan-gu Sees Increase in Sales Transactions for Four Consecutive Months

Expectations for the 2040 Seoul Urban Master Plan
Record-high transactions continue in Hannam-dong and other areas

View of the Yongsan Presidential Office from Namsan, Jung-gu, Seoul. / Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Hwang Seoyul] Despite the trading transaction cliff, Yongsan-gu in Seoul has seen an increase in sales transaction volume for four consecutive months. In particular, high-priced apartments around the Han River, such as Ichon-dong, Hangangno 3-ga, and Hannam-dong, continue to record new highest prices in sales transactions.

According to the Seoul Real Estate Transaction Information Plaza on the 4th, the apartment sales transaction volume in Yongsan-gu, Seoul, has been on the rise sequentially from January this year (14 cases) to February (16 cases), March (31 cases), April (40 cases), and May (47 cases). Of course, compared to May last year (131 cases), Yongsan-gu still seems unable to escape the sales transaction cliff. However, among Seoul's autonomous districts, only Seodaemun-gu, Yeongdeungpo-gu, and Yongsan-gu have shown an upward trend for four consecutive months this year.

This appears to reflect expectations for Yongsan's role in strengthening connectivity with Yeouido under Seoul City's ‘2040 Seoul Urban Basic Plan,’ in addition to the positive effect of the relocation of the Yongsan office. In particular, the basic plan includes the ‘reorganization of the Han River waterfront-centered space,’ which has increased interest in areas close to the Han River such as Ichon-dong, Hannam-dong, and Hangangno 3-ga. The number of sales transactions in these three areas (26 cases) accounted for more than half of the total transactions in May. In April as well, 52.5% of the total transactions in Yongsan-gu were conducted in these areas.

In fact, in the three areas where high-priced apartment complexes are located, sales transactions have been made recently by surpassing the previous actual transaction prices. According to the Ministry of Land, Infrastructure and Transport's Real Transaction Price Disclosure System, Hannam The Hill in Hannam-dong (exclusive area 240.305㎡) was traded at 11 billion KRW in May, setting a new highest reported price. Similarly, Yongsan City Park in Hangangno 3-ga (exclusive area 114.17㎡), which was sold for 2.7 billion KRW last month, also recorded a new high.

New jeonse prices have also risen significantly. For example, Raemian Chellitus in Ichon-dong (124.35㎡) was contracted last month with a jeonse deposit of 2.7 billion KRW. However, for the same area in this complex where the contract renewal right was exercised in February, the jeonse deposit was 1.68 billion KRW, which was more than 1 billion KRW lower than the market price.