Seoul's Largest 'Republic of Apartments' Songpa Tops Nationwide Growth: The Secret Lies in Its 'Hexagonal Location' [Real Estate AtoZ]

20.72% Tops 178 Districts Nationwide
Jamsil Area Leads Market with Jamsil Le El at 4.8 Billion Won
Outer Neighborhoods Like Geoyeo and Macheon See "Leveling Up"
Natural Environment, GBD Accessibility, and Development Potential: The "Hexagon

Songpa District in Seoul is expected to record the highest apartment price growth rate in the country for the first time in two years. Analysts attribute this to the so-called "hexagonal location," meaning the area is being re-evaluated by buyers for possessing all six desirable factors: transportation, school districts, convenience facilities, natural environment, proximity to workplaces, and potential for reconstruction and redevelopment.

Heliociti Panorama. The Asia Business Daily DB.

According to the Korea Real Estate Board on December 17, the cumulative apartment price growth rate in Songpa District for this year stands at 20.72%, the highest among 178 cities, counties, and districts surveyed nationwide. Gwacheon City ranks second at 17.96%, about 3 percentage points lower. Although the December figures have yet to be finalized, current trends indicate that Songpa is likely to end the year as the top region for annual price growth. Following its first-place finish nationwide in 2023 with a 3.84% increase, Songpa is now on the verge of reclaiming the title of "the region with the highest apartment price increase" after two years. Last year, Sangju in North Gyeongsang Province ranked first with a 12.93% rise.

Songpa District is often referred to as the "apartment republic." With 164,317 apartment units, it has the largest number among Seoul's autonomous districts. Six out of the top ten apartment complexes in Seoul by number of units-including Heliociti (9,510 units)-are concentrated in Songpa. The district also features a wide range of price points, from the Jamsil and Sincheon areas to outer neighborhoods like Geoyeo and Macheon.

Ham Youngjin, Head of the Real Estate Research Lab at Woori Bank, remarked, "Songpa is a representative area in Seoul with a high concentration of large-scale apartment complexes, so price increases in a few high-end complexes do not immediately translate to a rise in the district’s overall growth rate. The fact that this area has achieved the highest growth rate nationwide signals a shift in the market's overall perception of Songpa, rather than a temporary overheating in specific complexes."

At the center of this trend is Jamsil-dong. A recent transaction of a 84-square-meter Jamsil Le El unit at 4.8 billion won drew significant market attention. The highest price for an 84-square-meter unit in Jamsil Jugong 5th Complex jumped from 3.425 billion won last year to 4.555 billion won this year, a 33% increase in just one year. There are even projections that the highest price could reach the 6 billion won range after reconstruction.

Other major complexes in each neighborhood, such as Heliociti (Garak-dong), Olympic Athletes' Village (Bangyi-dong), and Olympic Family (Munjeong-dong), also posted growth rates in the 20-40% range. In addition, "leveling up" is occurring in outer neighborhoods like Geoyeo and Macheon, which were previously undervalued, further boosting the district’s overall growth rate.

The change in price levels symbolically reflects the changing status of Jamsil. In the current market, Jamsil is now grouped with Apgujeong and Banpo under the term "Ap-Ban-Jam." Compared to the previous grouping of Bangbae, Gaepo, and Jamsil ("Bang-Gae-Jam"), this indicates that Jamsil’s position has been elevated. As the value of riverside neighborhoods is re-evaluated, the premium once concentrated in Apgujeong and Banpo is now expanding to Jamsil.

Experts point to the completeness of Songpa District’s location as the main reason for its strong housing prices. The district is well-balanced in all aspects that determine residential value, including transportation, living infrastructure, work accessibility, natural environment, and potential for reconstruction and development. Jamsil boasts rare natural features for Seoul, such as the Han River, Olympic Park, and Seokchon Lake. It also offers excellent access to the Gangnam business district. There are high expectations for the Jamsil MICE (Meetings, Incentives, Conferences, Exhibitions) complex development and large-scale reconstruction projects.

Park Wongap, Senior Real Estate Expert at KB Kookmin Bank, commented, "If Banpo is a 'large hexagon' location that ranks at the top in every category, Jamsil is closer to a 'hexagon' where transportation, nature, work accessibility, and development potential are all thoroughly filled, even if it is not number one in any single aspect. Such locations are structurally supported in price, rather than being swayed by any one favorable factor."