Seoul Housing Prices Finally 'Upward Trend', Market in 'Thawing Period'... 'Hwigyeong Xi Decencia' Subscription Accounts Flood In

Despite the decline in the Seoul real estate market due to rapid interest rate hikes, loan regulations, and economic recession, long-term prospects suggest an upward trend. Historical cases indicate that the asset value of Seoul apartments is higher compared to other investment options, making a rebound more likely.

According to the Bank of Korea's report titled "Characteristics and Implications of Housing as an Asset in Korea," released in May last year, the average annual investment return on Seoul apartments from Q1 2006 to Q3 2021 was calculated at 4.0%. This was higher than fixed deposits (2.8%) but slightly lower than the KOSPI (4.6%). However, the volatility index for KOSPI was 43 times higher due to the inherent fluctuations in the stock market.

Looking at past Seoul apartment prices also shows an overall upward trend. According to data from Real Estate R114, the average sale price per 3.3㎡ of Seoul apartments in 2012 was 17.1 million KRW, down 1.24 million KRW from the previous year's price of 18.34 million KRW. However, prices began to rise again in 2014 (17.22 million KRW) and continued to increase to 42.68 million KRW by 2022.

Concerns about economic slowdown and the possibility of falling housing prices suggest that the market may remain sluggish for some time. However, with the Bank of Korea freezing interest rates on the 23rd, reducing uncertainty, and ongoing signals of regulatory easing from the government, recent forecasts indicate a recovery in transactions.

Real Estate Info's Research Team Leader Kwon Il said, “The reason Seoul apartments have relatively high asset value is that Seoul is the most central city in all areas including politics, economy, society, and culture in Korea, with an overwhelming concentration of quality jobs and living infrastructure compared to other regions, resulting in stable demand.” He added, “Although there is high demand for housing in Seoul, supply is limited, so even if there are short-term adjustments, Seoul housing prices rarely experience significant fluctuations.”

In fact, the Seoul housing market is showing clear signs of a 'thaw.' According to the Seoul Real Estate Information Plaza, apartment transactions in Seoul last month reached 1,340 units, surpassing 1,000 units for the first time in seven months since June last year.

Additionally, large-scale complexes in Seoul are continuing to sell out, with buyers actively participating in new sales. For example, 'Jangwi Xi Radiant' and 'Riversen SK VIEW Lotte Castle' recently achieved 100% contract rates, and the main unit types of 'Olympic Park Foreon (Dunchun Jugong Reconstruction)' have also sold out.

[Hwikyung Xi Decencia Perspective]

Accordingly, as the spring sales season arrives, inquiries from buyers are continuing for new large-scale branded complexes in Seoul. A representative example is GS Construction's 'Hwigyeong Xi Decencia' in the Imun and Hwigyeong New Town areas of Dongdaemun-gu.

'Hwigyeong Xi Decencia,' introduced through the Hwigyeong 3 Redevelopment Promotion Zone housing redevelopment project in Hwigyeong-dong, Dongdaemun-gu, Seoul, will be a large complex consisting of 14 buildings with a total of 1,806 units, ranging from three basement floors to a maximum of 35 floors above ground. Of these, 700 units will be available for general sale, including ▲39㎡ 19 units ▲59㎡ 607 units ▲84㎡ 74 units, featuring small to medium-sized types preferred by buyers.

The complex is a double-station area, adjacent to Hoegi Station (Line 1, Gyeongui-Jungang Line, Gyeongchun Line) and Hwigyeong Station (Line 1). It also offers easy access to various parts of Seoul via nearby Mangwoo-ro, Hancheon-ro, Dongbu Expressway, and the Inner Circular Road.

Nearby, Lotte Department Store and Lotte Mart are located in Cheongnyangni, and Costco is close to Sangbong Station, providing convenient living facilities. Major universities such as Korea University, Kyung Hee University, Hankuk University of Foreign Studies, and University of Seoul are also situated nearby. Additionally, the adjacent Jungnangcheon stream offers opportunities for exercise and leisure along the waterway.

The complex is arranged mainly in a V-shaped south-facing layout, providing excellent natural light. Some 59㎡ units feature a 4-bay slab-type structure with master bedroom dressing rooms, maximizing space utilization. The residents' community center, 'Club Xi-an,' will include a fitness club, golf practice range, GX room, and a small library.

A GS Construction sales official stated, “Demand remains high for new large-scale branded complexes in Seoul, and 'Hwigyeong Xi Decencia' is located in a prime area within Imun and Hwigyeong New Town, attracting continuous inquiries. We will devote our utmost effort to developing an apartment that represents the region and meets the expectations of customers who have awaited this sale for a long time.”

Meanwhile, the 'Hwigyeong Xi Decencia' model house and promotional center are currently open.