[Toheje Lifted] Kukpyeong Hits 3 Billion Won...? Jamsil Flagship Apartment Price Jumps in 2 Weeks

Asking Prices Jump Over 100 Million KRW Compared to Lunar New Year
On-site Forecasts Predict 3 Billion KRW for Standard Units
Experts Expect Short-term Price Increases

"An environment conducive to easy buying and selling has been created, so prices will likely rise for the time being." (Jamsil-dong A Real Estate Office)

"Since Mayor Oh Se-hoon mentioned lifting the land transaction permission zone, homeowners have been withdrawing their listings, saying they won't sell their houses." (Jamsil-dong B Real Estate Office)

As the land transaction permission zones were lifted in Jamsil-dong, Songpa-gu, and in Samseong-dong, Daechi-dong, and Cheongdam-dong areas of Gangnam-gu, the real estate market is showing signs of excitement centered around beneficiary areas, with homeowners raising asking prices mainly in large apartment complexes in Jamsil.

Els, Trizium, and Resentz apartments in Jamsil-dong, Songpa-gu, Seoul. Photo by Lee Ji-eun

In particular, asking prices have steadily increased around the flagship apartment complexes that lead the Jamsil market. Some units have seen asking prices rise by more than 100 million KRW in about two weeks. For example, units with a net area of 59㎡ in Els Apartments in Jamsil-dong are currently listed between 2.38 billion KRW and 2.5 billion KRW. Compared to the end of last month before the Lunar New Year holiday, when the asking price for the same size was between 2.3 billion KRW and 2.35 billion KRW, this is an increase of over 100 million KRW.

In the case of Resentz Apartments in Jamsil, the asking price for an 84㎡ unit on a high floor is between 2.95 billion KRW and 3 billion KRW. At the end of last month, the asking price for the same size ranged from 2.75 billion KRW to a maximum of 2.9 billion KRW.

Jamsil Trizium set a new record on the 15th of last month when a 16th-floor 59㎡ unit sold for 2.255 billion KRW. The previous record was 2.21 billion KRW in October last year, marking a 45 million KRW increase in four months.

Industry insiders expect apartment prices in the Jamsil-dong area to steadily rise in the future due to anticipation of the lifting of the land transaction permission zone. A representative from a real estate office in Jamsil-dong said, "For Els, Resentz, and Tridel apartments, well-maintained units could reach the 3 billion KRW range for 84㎡ units."

Experts also predict that transaction volumes will increase and prices will rise in the short term. Yang Ji-young, Senior Asset Management Consultant at Shinhan Investment Corp., explained, "Once the land transaction permission system is lifted, the obligation for actual residence disappears, and gap investments using leverage will increase. The transaction volume, which had been sluggish due to the permission system, is expected to be reflected in the market."

On the 12th, the Seoul Metropolitan Government announced the lifting of the land transaction permission zone for the Jamsil, Samseong, Daechi, and Cheongdam areas near the International Exchange Complex District. Out of 305 apartment complexes, 291 are affected. However, 14 complexes that passed safety inspections, such as Jamsil Jugong Complex 5 and Daechi Eunma Apartments, will maintain the previous restrictions. Areas like Apgujeong, Yeouido, Mok-dong, and Seongsu-dong reconstruction complexes will also remain regulated.

The Seoul city government stated that it will comprehensively assess price trends and consider re-designation if overheating occurs. Cho Nam-jun, Director of the Urban Space Headquarters, said, "We plan to make judgments based on comprehensive reviews of real estate price increases and transaction trends. We hold the principle that real estate transactions should be largely stabilized downward."