Seoul Apartment Jeonse and Sale Prices Rise, 'Eunpyeong Xi The Star' Contract Accelerates

- In April This Year, Seoul Apartment Sale Prices Soar 26% Compared to Same Period Last Year
- Seoul Jeonse Prices Also Rise Throughout the Year... Eunpyeong-gu Sees 61% Increase in Transactions

Although the first half of the year is coming to an end, the sale prices are breaking records every month regardless of whether they are in the metropolitan area or the provinces. As a result, places that announced sales long ago and are currently selling some remaining units are gaining attention for their reasonable prices, accelerating contract signings.

According to the Housing and Urban Guarantee Corporation (HUG), as of the end of April this year, apartment sale prices in Seoul surged 26.7% compared to a year ago. In particular, prices have been rising relentlessly with each monthly announcement, making the saying "today's sale price is the cheapest" a reality.

Looking at individual complexes, the apartment in Gwangjin-gu, which received applications on the 12th, recorded a heated 1st priority average competition rate of 494.1 to 1. Earlier in March, an apartment in Seodaemun-gu had a sale price of 1,048.75 million KRW for a 59㎡ unit (highest price basis). However, it recorded a heated 1st priority average competition rate of 124.4 to 1. A large complex in Seongdong-gu that held applications last December also exceeded 1 billion KRW for the 59㎡ type but was fully contracted within a short period.

The increase in construction costs was driven by rising raw material and labor costs. In particular, sale prices are expected to continue soaring. This is due to the looming challenge of mandatory Zero Energy Building certification. Starting next year, private multi-family housing with 30 or more units will be required to comply with Zero Energy Building standards. This system quantitatively evaluates the five major energy uses of a building (cooling, heating, hot water, lighting, ventilation) to certify its energy performance. The Korea Institute of Construction Industry Research expects construction costs for Zero Energy Buildings to skyrocket compared to existing buildings.

Seoul apartment jeonse (long-term lease) prices are also soaring. According to the Korea Real Estate Board, Seoul apartment jeonse prices rose 0.1% in the first week of June compared to the previous week, marking 55 consecutive weeks of relentless increases. A survey by Zigbang analyzing April's Seoul apartment jeonse transactions revealed that 48% of transactions saw price increases compared to the previous transaction within one year.

In particular, Eunpyeong-gu had 61% of jeonse transactions with price increases. This is analyzed to be due to the demand for jeonse in new apartments within five years of occupancy, which raises the proportion of rising transactions.

An industry insider said, "Seoul is facing a future supply cliff, and there are no new apartments to be supplied, so jeonse prices can only go up further," adding, "This is likely to act as a factor pushing up housing prices."

With sale prices expected to continue rising, buyers seeking new apartments are turning their attention to places currently supplying some remaining units. Since sale prices were set earlier when the sales announcements were made, these places have secured price competitiveness.

[Eunpyeong Xi The Star Perspective]

Undoubtedly, the spotlight is on Eunpyeong-gu’s ‘Eunpyeong Xi The Star,’ constructed by GS Construction. It is currently offering a fixed contract deposit of 20 million KRW and provides full interest-free benefits on intermediate payments. In other words, paying only 20 million KRW means no additional costs until move-in. The scheduled move-in date in 2026 is also an advantage, allowing ample time.

Another feature is the full-option provision that makes interior work unnecessary. Basic provisions include hardwood flooring, European porcelain tiles, system air conditioning, Syscline, Objet refrigerators, and dishwashers. The complex consists of a total of 312 households, and some small units (49㎡ exclusive area) are currently being sold. Each household can park one vehicle, and the complex boasts two bathrooms and ample storage space.

Additionally, Eungam Station and Saejeol Station on Line 6 are within walking distance. Plans are underway to add the Seobu Line and Goyang-Eunpyeong Line at Saejeol Station, allowing access to three lines all within walking distance in the future. Located in the original downtown area of Eunpyeong-gu, the complex is surrounded by abundant living infrastructure and prestigious private schools such as Chungam Middle School and Chungam High School. Starfield Goyang and IKEA Goyang are also conveniently accessible by car. The nearby Bulgwangcheon Stream, with its diverse trees and well-maintained walking paths, adds to the pleasant residential environment.

A sales representative said, "The officetels have already sold out, and currently only some remaining small units are being sold," adding, "The benefits to contract holders, including interest-free intermediate payments and full options, amount to about 100 million KRW in actual value, and contracts are progressing smoothly, so we expect a full sell-out soon."