Decline in Songpa-gu... Wirye New Town Also Wobbles

New Town Adjacent to Gangnam Area Also Hit
Sale Prices Drop by 200 Million Won in One Year

[Asia Economy Reporter Hwang Seoyul] Apartment sale prices in Wirye New Town, adjacent to the Gangnam area of Seoul, are dropping by hundreds of millions of won. A complex in Seongnam Wirye that was traded this month was sold at a price more than 200 million won lower than last year, and complexes located in Hanam Wirye and Songpa Wirye were also sold at prices lower than the previous transactions. The downward trend in the center of Songpa-gu appears to be spreading to the outskirts.

According to the Ministry of Land, Infrastructure and Transport's Real Transaction Price Disclosure System on the 18th, ‘Wirye Jayeon & Central Xi’ in Changkok-dong, Sujeong-gu, Seongnam-si, Gyeonggi Province (exclusive area 59.83㎡) was sold for 1.23 billion won on the 5th. This is 230 million won lower compared to a year ago. Another unit in the same complex with an exclusive area of 84.94㎡ was also traded for 1.5 billion won, showing a decrease of 230 million won from the previous transaction.

As the housing market transactions freeze, complexes located in Wirye New Town are also showing a recent downward trend. The apartment sale price index in Sujeong-gu, Seongnam-si, which includes Wirye New Town, has been declining since April this year (month-on-month -0.01%), dropping from an index of 104.9 at that time to 104.3 in August. Hanam City has been on a downward trend since January (103), recording 100.7 last month, down 2.3 points from then. Songpa-gu has been declining since February (105.6), falling to 104.8 last month.

On the 14th, in a real estate-dense shopping district in Songpa-gu, Seoul, where the decline in real estate prices and the transaction freeze phenomenon continue, apartment listings with market prices are posted. Photo by Kang Jin-hyung aymsdream@

Looking at individual complex sale prices, they have dropped by about 200 million won compared to the previous transactions. ‘Wirye Art River Prugio Complex 2 (104.77㎡)’ in Changkok-dong, Sujeong-gu, Seongnam-si was directly traded for 1.701 billion won, down 219 million won from the previous transaction (1.92 billion won). ‘Floriche Wirye (exclusive area 101.99㎡)’ in Hakam-dong, Hanam-si was traded for 1.5 billion won in June, dropping 229 million won in two months. ‘Wirye 24 Complex Dream Green (51.77㎡)’ in Jangji-dong, Songpa-gu was traded for 1.05 billion won in June, down 160 million won from the previous transaction (1.21 billion won).

Recently, the downward trend in the center of Songpa-gu seems to be affecting the outskirts, including Wirye New Town. Asia Athlete Village Apartments (134.49㎡) in Jamsil-dong peaked at 3.75 billion won in April this year but declined and was traded for 3.6 billion won this month. ‘Jamsil Els (84.8㎡)’ was traded for 2.05 billion won last month. This is 650 million won lower than the peak price of 2.7 billion won recorded in October last year.

Park Hapsu, adjunct professor at Konkuk University Graduate School of Real Estate, said, "The price decline in the center of Songpa-gu is spreading to the outskirts," adding, "Although Songpa-gu is included in the three Gangnam districts, unlike Seocho and Gangnam-gu, which can withstand price declines, it seems to be more sensitive to market conditions because it is a neighborhood with many early wealthy residents."