Not Gangnam or Yongsan, but No. 1... The Area with a 'Hexagonal Location' Driving Apartment Price Growth [Real Estate AtoZ]

Songpa, Seoul's Largest "Apartment Republic"
Tops 178 Districts Nationwide with 20.72% Growth
Jamsil Area Leads Price Surge, Including Jamsil Le El at 4.8 Billion KRW
Outlying Areas Like Geoyeo and Macheon Also Level Up
"Hexagonal Location" wi

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 has been 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 number one district for annual growth. Following its top nationwide growth rate of 3.84% in 2023, Songpa is now on the verge of reclaiming the title of "the region with the highest apartment price increase" in just two years. Last year, Sangju City in North Gyeongsang Province led the nation with a 12.93% increase.

Songpa District is known as the "Republic of Apartments." 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 area also features a diverse price range, from Jamsil and Sincheon-dong to Geoyeo and Macheon-dong.

Ham Youngjin, head of the Real Estate Research Lab at Woori Bank, stated, "Songpa is a representative area in Seoul for large-scale apartment complexes, and price increases in a few luxury complexes do not typically translate directly into overall district growth. The fact that this area has recorded the highest growth rate nationwide signals a shift in the market’s perception of Songpa as a whole, rather than overheating in specific complexes."

At the center of this trend is Jamsil-dong. Recently, a 84-square-meter unit in Jamsil Le El was sold for 4.8 billion won, drawing significant attention in the market. 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. Some forecasts suggest that, after reconstruction, the highest price in Jamsil Jugong 5th Complex could reach the 6 billion won range.

Other major complexes in each neighborhood-such as Heliociti in Garak-dong, Olympic Athletes’ Village in Bangi-dong, and Olympic Family in Munjeong-dong-also recorded growth rates between 20% and 40%. In addition, "leveling up" is occurring in outlying areas like Geoyeo and Macheon, which had been relatively undervalued, further boosting the overall district’s growth rate.

The change in price levels symbolically demonstrates the shift in Jamsil’s status. 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 reflects an elevation in Jamsil’s standing. As the value of neighborhoods along the Han River is being re-evaluated, the premium once concentrated in Apgujeong and Banpo is now expanding to Jamsil as well.

Experts point to the completeness of Songpa District’s location as the driving force behind its strong housing prices. The area is well-balanced in all elements 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. In addition, there are high expectations for the Jamsil MICE (Meetings, Incentives, Conferences, and Exhibitions) complex development and large-scale reconstruction projects.

Park Wongap, Senior Real Estate Specialist at KB Kookmin Bank, explained, "If Banpo is a 'large hexagon' location that ranks at the very top in all categories, Jamsil may not be number one in any single factor, but its transportation, natural environment, work accessibility, and development potential are all solidly filled, making it close to a 'hexagon.' Such locations are structurally supported in price, rather than being swayed by any single favorable factor."