Let's Revisit 'Yeongdeungpo'... A New Residential Town Transformed by the New Town Project

7,300 Households Move In This Year... 17.4% of Seoul's Move-In Volume
Start of 1,546 Households at Singil 5 District Boramae SK View... Sale Prices Also on the Rise

[Asia Economy Reporter Lee Chun-hee] The residential map of the Yeongdeungpo-gu area in Seoul is undergoing a significant transformation. This is because the redevelopment projects of Shingil and Yeongdeungpo New Towns, which were densely populated with old houses, are coming to a close this year. With 7,300 households moving in this year alone, Yeongdeungpo-gu is expected to transform into a new residential town in the southwestern part of Seoul.

According to Real Estate 114 on the 13th, the number of apartments scheduled for move-in in the Yeongdeungpo-gu area is 7,279 households. This accounts for 17.4% of the total 41,913 apartment households moving in across Seoul this year. Among the 25 autonomous districts in Seoul, this is the highest number, even exceeding Gangdong-gu, where 5,938 households are scheduled to move in, including reconstruction complexes in the Godeok-dong area.

The increased interest from demanders in the Yeongdeungpo area is largely due to the development of Shingil New Town in the Shingil-dong area. Starting with Boramae SK View in Shingil 5 District, which is currently moving in with 1,546 households, the projects ▲Shingil Central Xi in District 12 (1,008 households, February) ▲Hillstate Classian in District 9 (1,476 households, October) ▲Shingil Park Xi in District 8 (641 households, December) are expected to complete their projects and welcome residents by the end of the year.

Designated as the third New Town in Seoul in 2005, Shingil New Town has since had 16 districts selected as redevelopment promotion zones. After the first sale of 949 households at Raemian Prevenue in District 11 in 2013, and the sale of The Sharp Park Prestige (791 households, District 3) last December, half of the districts, eight in total, have entered the project completion stage. The Sharp Park Prestige recorded an average competition rate of 114 to 1, with over 20,000 applicants competing for 187 general sale households.

Prices are also showing a steep upward trend. The 85㎡ (exclusive area) Raemian Estium in this area was sold for 1.4 billion KRW on December 10 last year, setting the highest price for the same area in this district. However, after the December 16 real estate measures, the price increase has somewhat slowed, showing a correction trend with the actual transaction price dropping to 1.3 billion KRW on the 19th of the same month.

▲ Perspective view of 'Singil The Sharp Park Prestige' in Singil-dong, Yeongdeungpo-gu, Seoul (Provided by POSCO E&C)

A representative from real estate agency A in Shingil-dong said, "The asking price is still formed around 1.4 billion KRW," adding, "Homeowners expect prices to continue rising once the regional development is completed." However, there is also analysis that price resistance will not be easy due to concerns that if prices rise above 1.5 billion KRW, mortgage loans will be prohibited. A nearby real estate agency B stated, "If loans are banned, demand may shrink, so inquiries from homeowners weighing whether to sell are gradually coming in."

Compared to Shingil New Town, the Yeongdeungpo New Town project around Yeongdeungpo Station, which had been relatively sluggish, is recently gaining momentum. The union of District 1-13 in this area received project implementation approval in December last year. The union plans to obtain management disposition approval within this year and start relocation early next year. District 1-12 successfully established its union in November last year, and District 1-11 plans to complete union establishment in the first half of this year.

However, Yeongdeungpo New Town is also criticized for having too many divided project zones, resulting in low profitability. For example, 'Forena Yeongdeungpo' in District 1-3, scheduled for move-in this October, has a total scale of only 185 households.

Meanwhile, in Yeongdeungpo-gu, Daerim-dong e-Pyeonhansesang Boramae 2nd Phase (July, 859 households) and Dangsan-dong Central I-Park (May, 802 households) are also expected to welcome residents within the year.

This content was produced with the assistance of AI translation services.