[One Month After Toheje Lift] Mayongseong, Over 2 Billion KRW in Sales Transactions Surge... Toheje Controversy Spreads

Number of High-Priced Transactions Doubles Year-on-Year
Actual Transaction Prices Jump by Hundreds of Millions of KRW
Lifting of Land Transaction Permit System Spurs Buying Sentiment

Since the lifting of the land transaction permit zone, the rising trend in housing prices that began in the Gangnam 3 districts has spread to Ma·Yong·Seong (Mapo, Yongsan, Seongdong). The number of apartment sales transactions exceeding 2 billion KRW in this area nearly doubled compared to the previous year. There are concerns that the lifting of the permit system could be a signal for a rise in housing prices across the Seoul area.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 13th, from January to the 12th of this year, about three months, the number of apartment transactions over 2 billion KRW concluded in Ma·Yong·Seong totaled 167. This is twice the number from the same period last year (81 transactions). Considering contracts with remaining reporting deadlines, the number of transactions may increase further.

By region, high-priced apartment sales surged mainly in Mapo-gu and Seongdong-gu. From January to the 12th, Mapo-gu and Seongdong-gu recorded 44 and 50 apartment sales over 2 billion KRW, respectively. This represents a 3.1-fold and 3.5-fold increase compared to the same period last year (14 transactions each). Yongsan-gu recorded 73 high-priced apartment transactions this year, a 1.2-fold increase compared to the previous year.

The highest apartment prices have also risen. In Mapo-gu, there was only one apartment transaction exceeding 3 billion KRW from January last year to early this month, but this year it increased to two. Shinchon Sup I-Park (137㎡ exclusive area) and Hangang Bamseom Xi (138㎡) each changed hands for 3 billion KRW last month. Notably, Hangang Bamseom Xi set a new record price for the same area, soaring by 820 million KRW compared to the previous transaction in January (2.18 billion KRW).

In the Ma·Yong·Seong area, there have also been observations of transaction prices rising by several hundred million KRW compared to previous real transactions. For example, in Ichon-dong, Yongsan-gu, LG Hangang Xi with an exclusive area of 171㎡ was traded for 4.2 billion KRW last month, setting a new record price. This is 680 million KRW higher than the previous transaction price (3.52 billion KRW) 11 months ago. In Seongsu-dong, Seongdong-gu, Seoul Forest Hillstate with an exclusive area of 117㎡ changed hands for 2.9 billion KRW, setting a new record price. This is 500 million KRW higher than the previous record price (2.4 billion KRW).

Experts attribute this price increase to the lifting of the land transaction permit system. After Seoul City eased regulations mainly around Jamsil, Samsung, Daechi, and Cheongdam on the 12th of last month, housing prices in the Gangnam 3 districts rose, leading to demand moving to other areas.

According to the weekly apartment price trend by the Korea Real Estate Board, since Seoul City announced the lifting of the permit system in the second week of February (February 10), apartment prices in the Ma·Yong·Seong area have been rising. In Yongsan-gu, apartment prices rose by 0.08% in the fourth week of February (February 24) compared to the third week, and increased further to 0.1% in the first week of March. Seongdong-gu saw a 0.1% increase in apartment sales prices in the fourth week of February compared to the previous week. Mapo-gu's increase, which was only 0.02% in the third week of February, rose to 0.09% and 0.11% in the fourth week of February and the first week of March, respectively.

Kwon Young-sun, a real estate analyst at Shinhan Bank, said, "The strong signal of regulatory easing stimulated buying sentiment, leading to a rise in housing prices. While the warming of housing prices may spread to outer areas in the future, it is expected that a polarization phenomenon will appear, with prices rising mainly in highly preferred complexes such as new buildings and large-scale complexes."