Some Areas Have Seen Prices More Than Double Compared to Pre-Sale Prices
"Living, Education, and Transportation Infrastructure Combined with the Rarity of the 'Gung' Name"
Recently, apartment complexes near palaces in downtown Seoul bearing the names of the palaces have been steadily rising in value, drawing attention.
According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 28th, the 59㎡ exclusive area apartment in 'Gyeonghuigung Xi 3rd Complex' in Jongno-gu, Seoul, set a new record price of 1.775 billion KRW in November last year. The 82㎡ exclusive area apartment in 'Deoksugung Lotte Castle' in Jung-gu, Seoul, was also traded at 1.569 billion KRW in June last year, marking a price increase of over 1 billion KRW compared to September 2016, when it was first occupied.
The 84㎡ exclusive area apartment in 'Gyeonghuigung Lotte Castle' also set a new record price of 1.66 billion KRW in July last year. This is more than double the initial sale price, which was in the high 700 million KRW range. Last month, the jeonse (long-term deposit lease) price reached 1.075 billion KRW, rising by more than 100 million KRW compared to last summer.
The 'Gungse-gwon' (palace vicinity) price increase trend is not limited to apartments. Recently, the officetel 'Gyeonghuigung's Morning' recorded the highest jeonse price in 27 months since October 2022, with a 150㎡ exclusive area unit traded at 1.3 billion KRW this month. The 124㎡ exclusive area sale price also set a new record of 1.9 billion KRW in September last year.
The 'Gungse-gwon' price rise seems to be expanding into the pre-sale market as well. 'Gyeonghuigung Ubora' in Seodaemun-gu, Seoul, which was pre-sold in March last year, received 7,089 applications for 57 units in the first priority subscription, recording an average competition rate of 124.4 to 1. 'Gyeonghuigung Ubora' is located within walking distance of Dongnimmun Station on Subway Line 3 and Seodaemun Station on Line 5. It offers quick access to Seoul's three major business districts: CBD, YBD, and GBD, and features diverse living infrastructure including elementary, middle, and high schools, parks, shopping malls, hospitals, and government offices.
'Changgyeonggung Lotte Castle Signature,' to be built in Samseon-dong, Seongbuk-gu, also showed a high competition rate of 26.7 to 1, with 6,942 applications for 260 units in the first priority subscription last November. This complex is reported to have attracted buyers' interest due to its proximity not only to Changgyeonggung but also to Changdeokgung, Jongmyo Shrine, and the Hanyangdoseong Fortress Wall, various historical sites.
While recent transaction volumes and prices have clearly declined, the so-called 'Gungse-gwon' areas have shown relatively steady price increases. Analysts attribute this to the combination of enjoying Seoul downtown's living, transportation, and educational infrastructure, along with the rarity of cultural infrastructure and the added value of the 'Gung' (palace) name. Last year, the Seoul Metropolitan Government published the 'Apartment Name Guidebook,' encouraging easy and comfortable names using Hangul and native place names instead of long and unfamiliar foreign words, expecting that apartment names using simple and straightforward Korean language would increase buyers' favorability and preference.
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