Jamsil Le El Standard Unit Sold for 4.8 Billion Won... Record Price Competition with Jamsil Raemian I-Park [Real Estate AtoZ]

Jamsil Le El and Raemian I-Park Emerge as Flagship Apartments in Jamsil
Raemian I-Park's Standard Unit Occupancy Right Sold for 4.1 Billion Won
New Apartment Shortage and Capital Gains Tax Drive Prices Higher

The right to move into a standard-sized unit (so-called "Gukpyeong") at Jamsil Le El, which is about to begin occupancy, was sold for 4.8 billion won. The complex is competing for the title of "Jamsil's flagship apartment" with the nearby Jamsil Raemian I'Park, with both setting new record-high prices.

Jamsil Le El bird's-eye view. Provided by Lotte Construction

According to the real estate industry on December 4, the right to move into an 84-square-meter unit (25th floor) at Jamsil Le El was contracted for 4.8 billion won on December 2. A lower-floor unit of the same size was sold for 4 billion won on November 3, breaking the record in just about a month. Recently, the asking price for a lower-floor standard-sized unit at Jamsil Le El has reportedly been in the 4.5 billion won range.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price system, on November 20, the right to move into a 59-square-meter unit was traded for 3.2 billion won and 3.3 billion won, respectively. Jamsil Le El completed pre-occupancy inspections from November 28 to 30, and move-ins will begin in January next year.

Jamsil Le El is being traded at about 100 million won higher than the nearby Jamsil Raemian I'Park. Raemian I'Park, which will begin occupancy at the end of December, has seen five right-to-move-in transactions over the past two months. Last month, the right to move into an 84-square-meter unit was sold for 4.1 billion won, setting a new record. The 59-square-meter unit was traded for 3.1 billion won. Currently, the asking price for an 84-square-meter unit at Jamsil Raemian I'Park is in the 4.1 to 4.5 billion won range, and for a 26-pyeong unit, it is in the 3.3 to 3.4 billion won range.

Prices are also rising rapidly at Jamsil Jugong Complex 5, which is undergoing reconstruction. Due to high expectations from buyers who see strong future potential, transactions are taking place at prices comparable to newly built apartments. On November 14, an 82-square-meter unit set a new record at 4.555 billion won. On November 1, a 76-square-meter unit was sold for 4.177 billion won. The current asking price for a 76-square-meter unit is in the 4 to 4.3 billion won range, and for an 82-square-meter unit, it is around 4.55 billion won.

Panoramic view of Jamsil Raemian I'Park complex. Provided by Samsung C&T Corporation

Although overall transaction volume has decreased since the October 15 real estate measures, prices in Songpa District continue to rise. According to KB Real Estate, as of the fourth week of November (November 24), the apartment sales price change rate in Seoul recorded 0.27%, marking a rise for 43 consecutive weeks. Among districts, Songpa District saw a 0.95% increase. Looking at the number of land transaction permits issued for residential use from November 3 to December 3, Songpa District issued 558 permits, more than 200 higher than Seocho District (353 permits) and Gangnam District (272 permits).

Ham Youngjin, head of the Real Estate Research Lab at Woori Bank, explained, "The price of standard-sized units at Jamsil Jugong Complex 5 is hovering around 4 billion won, and the high capital gains tax on new move-in rights at complexes like Jamsil Le El inevitably leads to higher asking prices."

Kim Hyoseon, Chief Real Estate Specialist at NH Nonghyup Bank, said, "Jamsil Le El is a newly built complex adjacent to Jamsil, which gives it symbolic value, and until the reconstruction of Jamsil Jugong Complex 5 is completed, these two complexes will serve as the flagship apartments in the area." She added, "Newly built apartments in Jamsil are also aligning their prices with those in Banpo, so there is further potential for price increases going forward."