Apartments Around Cheongnyangni Station Join the '1 Billion Won Club' One After Another

New Apartment Boom... Small to Medium Apartments Under 84㎡ Successively Surpass 1 Billion Won

Perspective view of an apartment complex near Cheongnyangni Station.

[Asia Economy Reporter Donghyun Choi] Apartments around Cheongnyangni Station in Seoul, which have shed their slum image due to large-scale redevelopment projects and transportation network improvements, are steadily joining the '10 Billion Won Club.' The '10 Billion Won Club' generally refers to apartments with a sale price exceeding 1 billion KRW (approximately 10 billion KRW) for small to medium-sized units under 84㎡ (exclusive area).

According to the Seoul Real Estate Information Plaza on the 31st, newly built small to medium-sized apartments in Jeonnong-dong, Dongdaemun-gu, near Cheongnyangni Station, are being traded at prices exceeding 1 billion KRW. The 59㎡ unit of Dongdaemun Lotte Castle Noblesse in this area first surpassed 1 billion KRW when it was traded for 1.07 billion KRW in November last year. The 84㎡ unit of the same complex also changed hands at a price exceeding 1.1 billion KRW a month later, continuing a record-high price trend. The nearby Raemian Crecity 59㎡ units were also sold for 1 billion KRW and 1.05 billion KRW respectively in December last year.

As new apartment prices rise, prices of relatively older apartments are also on the rise. The 112㎡ unit of Sinseong Misojeum was sold for 1 billion KRW on the 7th. This is the first time this complex has exceeded 1 billion KRW. Compared to the previous sale price of 870 million KRW in August 2018 for the same size unit, this is an increase of 130 million KRW.

The rise in apartment prices around Cheongnyangni Station appears to be influenced by the successful sales of newly launched apartments at relatively high prices last year. The pre-sale price of 'Cheongnyangni Station Hanyang Sujain 192,' launched in April last year, exceeded 1 billion KRW for the 84㎡ units, ranging from 818 million KRW to 1.082 billion KRW. The 84㎡ units of 'Cheongnyangni Station Lotte Castle SKY-L65,' launched in July of the same year, also exceeded 1 billion KRW for high-floor units. Despite controversies over high pre-sale prices, both complexes successfully completed sales with competition rates of 4.6 to 1 and 14.4 to 1, respectively. Earlier, 'Cheongnyangni Station Harrington Place' recorded a competition rate of 31 to 1. A real estate industry insider analyzed, "Despite the ban on group loans for intermediate payments on apartments priced over 900 million KRW, all three complexes succeeded in sales, which also drove up surrounding housing prices."

Expectations for further price increases remain strong. A representative from real estate agency A in the area said, "Although transactions have somewhat decreased due to loan regulations, expectations that apartments near the station will eventually rise in market price remain," adding, "There are cases where cash-rich buyers have placed purchase reservations on several complexes in this area."

Various development benefits, including transportation, are also factors stimulating housing prices in this area. Cheongnyangni Station is a transportation hub served by five subway lines, including the metropolitan area express railway (GTX), and the KTX Gangneung Line. The surrounding Hongneung area is also undergoing an urban regeneration New Deal project to establish a bio-industry complex. According to Real Estate 114, from December 2018 to December last year, the price per 3.3㎡ of apartments in Cheongnyangni-dong rose from 17.93 million KRW to 18.71 million KRW, an increase of 4.3%. During the same period, Jeonnong-dong rose from 21.33 million KRW to 23.21 million KRW, up 8.8%, and Hwikyung-dong rose from 16.42 million KRW to 17.26 million KRW, up 5.1%.

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