Gangnam Area's Largest Development Project GBC-less Artide, Regaining Attention for Future Value

Contracts for ‘Artide,’ the first high-end residential facility on Samsung-ro, are steadily being finalized. Artide is located in the Samsung-ro area of Gangnam-gu, Seoul, and consists of two towers: one with 3 basement floors to 15 above-ground floors, and another with 12 above-ground floors. It comprises 44 officetels with a private area of 55㎡ and 56 urban lifestyle housing units with a private area of 38㎡.

Proven Effects of Large Corporation Tenants, Expected to Recur in Daechi-dong Benefiting from GBC

As expectations arise that overall housing prices will rise if the sale price increases, there is a consensus that the price increase in Daechi-dong, where Artide is located, will be even greater.

The main reason is that the GBC (Global Business Center) project is accelerating with a target completion date of December 2026. Some say that just as the land prices in Seocho-dong sharply rose when ‘Samsung Town’ was developed in the past, the value of Teheran-ro and Daechi-dong areas will also rise steeply due to GBC.

Large-scale development projects, including headquarters of global corporations, have led to land price increases in nearby areas. In fact, looking at the land price change rate in Seocho-gu before and after Samsung Group’s headquarters moved into ‘Samsung Town’ in Seocho-dong in 2008, the upward trend became prominent from 2002 when Samsung Group began promoting the Seocho-dong headquarters project. From the move-in in 2008 until Samsung Electronics relocated its headquarters to Suwon in 2016, the land price increase rate mostly exceeded that of the entire Seoul area, maintaining a steep upward trend without decline except for 2008, which was affected by the global economic crisis.

Even when looking at individual publicly announced land prices, increases of more than 10 times continued. Prices of residential products near Samsung Town also rose significantly. The luxury residential facility ‘Boutique Monaco,’ located across from Samsung Town, was completed in 2008 in line with Samsung Town’s move-in, and its prices rose steeply along with the land price increase in the Samsung Town area. At the time of sale, this complex was sold at a record high price of 27 million KRW per 3.3㎡, with units priced between 1 billion and 2.2 billion KRW. Due to steady demand, it recently recorded a new high price of 4.3 billion KRW, demonstrating its popularity.

Expectations for the development benefits of GBC, which is anticipated as the largest development project in the Gangnam area, are also leading to land price and price increases in the area. According to industry sources, the publicly announced price of the Samsung-dong GBC site has risen more than threefold since Hyundai Motor Group purchased it. In addition, the actual transaction prices of building sites in Samsung-dong and Daechi-dong are already known to have risen to two to three times the publicly announced prices. There are predictions that once the GBC project is completed, the value of the area where Artide is located will reach astronomical figures.

Moreover, Artide is expected to directly benefit from the so-called ‘Gangnam’s three major development boons’ concentrated in Samsung-dong and the Yeongdong-daero area, including GBC. The Yeongdong-daero complex development connected to GBC is scheduled to be completed around 2028. This project involves three-dimensional development of the area from Samsung Station intersection to Bongeunsa Station and COEX intersection, creating a complex transfer center for GTX and other transit systems, as well as green plazas. Along with the Jamsil International Exchange Complex District project, Artide, as a beneficiary complex, is expected to see its value rise further.

Furthermore, Daechi-dong, where Artide is located, has long been known as a hub for high-income families’ children’s education, to the extent that the phrase ‘Daechi-dong study abroad’ exists. Recently, it has attracted not only entrance exam academies but also foreign language and arts academies. Although it is a densely populated residential area, it is widely regarded as the only place in Gangnam that combines both business and residential functions due to its proximity to Teheran-ro.

A real estate expert said, “Due to development around Samsung Station, the center of gravity in Gangnam is shifting from Cheongdam and Apgujeong toward the Samsung area,” adding, “With recent increases in land prices, interest rates, and material costs making price rises inevitable, there is a movement to secure locations with high future value, centered around Daechi-dong and other areas.”

Meanwhile, Artide opened its housing exhibition hall on the 22nd of last month and has officially started sales. It operates on a 100% reservation basis.