New Apartments Drive Housing Prices... Seoul Average Reaches 1.4 Billion Won

Popularity of Newly Built Apartments 1-5 Years After Move-In Soars
Seocho, Gangnam, Yongsan, Songpa, Jongno Rank Highest in Average Price

[Asia Economy Reporter Yuri Kim] Amid a booming apartment sales market, newly built apartments that have been occupied for 1 to 5 years are leading the market.

On the 4th, Real Estate 114 surveyed the average sale price per household of apartments in Seoul by their age. Newly built apartments occupied within 5 years were priced at 1,387.43 million KRW, approaching 1.4 billion KRW. Considering that older apartments occupied for more than 10 years are priced around 900 million KRW (916.42 million KRW), it is analyzed that there is an average price gap of about 500 million KRW depending on the apartment's age.

Real Estate 114 analyzed that the soaring prices of newly built apartments are influenced by the traditional stronghold Gangnam area joined by emerging strongholds Mayongseong (Mapo, Yongsan, Seongdong districts), Jongno, and Dongjak. Among these, newly built apartments in Seocho-gu had the highest average price per household at 2,572.86 million KRW. In recent 2 to 3 years, older apartments in Banpo-dong and Jamwon-dong have been transformed into new apartment complexes through reconstruction, leading the overall market prices in the Gangnam area.

Following Seocho-gu, the average prices per household were ▲Gangnam (2,314.64 million KRW) ▲Yongsan (1,836.51 million KRW) ▲Songpa (1,598.04 million KRW) ▲Jongno (1,567.88 million KRW) ▲Dongjak (1,373.94 million KRW) ▲Seongdong (1,359.60 million KRW) ▲Mapo (1,315.16 million KRW) ▲Gangdong (1,269.01 million KRW). Yongsan, a representative of Mayongseong, saw newly built apartment prices surpass Songpa, while Jongno, which gained attention with the move-in of Gyehwigung Xi, and Dongjak, where new apartments in Heukseok New Town are being occupied, also showed noticeable price increases. Other areas where newly built apartments exceeded 1 billion KRW include Yangcheon, Jung-gu, Yeongdeungpo, Seodaemun, Gangseo, and Gwangjin.

Yoon Ji-hae, Senior Researcher at Real Estate 114, said, "Ahead of the implementation of the price ceiling system for private land and resale restrictions in the metropolitan area, competition for subscription to pre-sale apartments is increasing daily. High subscription competition rates exceeding 100 to 1 continue not only in Seoul but also in the metropolitan area, naturally connecting to leading price increases in the region at the time of move-in 2 to 3 years later. Even if the initial pre-sale price is set lower than the surrounding market price, by the time of move-in, the apartments become premium complexes surpassing existing surrounding apartments." She added, "Demand concentration in the pre-sale market is expected to continue for the time being, naturally leading to a preference for newly built apartments."

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