'Geum, Gwan, Gu' Also Reached 1 Billion Won

First Over 1 Billion KRW Transactions Appear in Geumcheon and Gwanak Districts... Areas with No Previous 1 Billion KRW+ Deals
10.4 Billion KRW Transaction Last Month at Lotte Castle Gold Park 1st in Doksan-dong
Entry Rights for ePyeonhansesang Seoul National University Entrance in Bongcheon-dong Also Exceed 1 Billion KRW

Guro District Sees Rising Trend Across Sindorim-dong, Most Transactions Over 1 Billion KRW
Continued Price Increases at Daerim 2nd and 5th in Sindorim

New Constructions and Station Area Benefits Combined with Gangnam Regulation Balloon Effect

[Asia Economy Reporter Lee Chun-hee] In the Seoul southwest area, which had been relatively overlooked during the housing price surge, apartments priced at over 1 billion KRW for 30-pyeong units are appearing one after another. In particular, a balloon effect is emerging, with apartments exceeding 1 billion KRW appearing for the first time in history in Geumcheon-gu and Gwanak-gu.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 16th, on the 10th of last month, an 84㎡ (exclusive area) apartment in 'Lotte Castle Gold Park Phase 1' in Doksan-dong, Geumcheon-gu, changed hands for 1.04 billion KRW. This is the first real transaction over 1 billion KRW across all unit sizes in Geumcheon-gu. About a month ago, in January, the same size unit was traded at 990 million KRW, approaching 1 billion KRW. Then, on the 12th, the price rose further to 1.075 billion KRW in a real transaction.

In Gwanak-gu, in October last year, a pre-sale right for an 84㎡ unit in 'ePyeonhansesang Seoul National University Entrance' in Bongcheon-dong was traded at 1.05 billion KRW. Then in December, a pre-sale right for the same size unit in the nearby 'ePyeonhansesang Seoul National University Entrance Phase 2' was traded at 1 billion KRW, and on the 21st of last month, the real transaction price soared to 1.08 billion KRW. Except for these two complexes, there has never been a transaction over 1 billion KRW in Gwanak-gu.

Along with these two areas, Guro-gu, known as part of the so-called 'Geum-Gwan-Gu' (Geumcheon, Gwanak, Guro districts), which is expected to rise in the future, is also showing a continuous upward trend. In Guro-gu, some 30-pyeong apartments in Sindorim-dong, near Sindorim Station on Seoul Subway Lines 1 and 2, already exceeded 1 billion KRW last year, but recently this upward trend seems to be spreading throughout Sindorim-dong.

An 84㎡ unit in 'Daerim 5th ePyeonhansesang' in Sindorim-dong first surpassed 1 billion KRW in a real transaction in January at 1.006 billion KRW. Then last month, the price rose to 1.055 billion KRW. Additionally, units of the same size in 'Sindorim Dong-A 1st' and 'Sindorim Daerim 2nd' also exceeded 1 billion KRW for the first time last month. The most prominent complex in the area, 'Daerim 4th ePyeonhansesang' 84㎡, saw its real transaction price rise to 1.31 billion KRW in January.

The housing price rise in the 'Geum-Gwan-Gu' area is gaining momentum as the balloon effect caused by regulations in the Gangnam area overlaps with favorable factors such as new constructions and proximity to subway stations. According to the Korea Real Estate Board's weekly apartment sales price index, Guro-gu's housing prices rose by 0.08% in the second week of March, showing the third-highest increase in Seoul. Along with the northeastern area represented by 'Nodogang' (Nowon, Dobong, Gangbuk districts), it appears to be leading the rise in Seoul apartment prices. The Korea Real Estate Board analyzed Guro-gu's rise as "an upward trend centered around subway station areas."

Experts also pointed out that the sharp decrease in supply in the 'Geum-Gwan-Gu' area since 2016 is a factor in the upward trend. According to Zigbang, the number of new move-ins in Guro-gu from 2016 to 2018 was zero. Although 3,166 households moved in last year and 780 households are scheduled to move in this year, most of these are located in the Hang-dong district on the Seoul city boundary. Gwanak-gu also had no new move-ins from 2016 to 2018. Last year, the only complex was 'ePyeonhansesang Seoul National University Entrance Phase 1' with 1,531 households, and this year, the only scheduled move-in is 'ePyeonhansesang Seoul National University Entrance Phase 2' with 519 households in May. Geumcheon-gu saw only 4,804 households move in from 2016 through last year. This year, apart from 68 households in Orpheum Tower in Doksan-dong, there are no scheduled move-ins.

Ham Young-jin, head of Zigbang Big Data Lab, analyzed, "These areas have high demand from younger generations but have had very little new supply since 2016. The upward trend appears centered on new apartments near subway stations such as Sindorim-dong and Doksan-dong."

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