[Report] "Quiet Jamsil, Gimpo Transformed into a Gold Mine" (Comprehensive)

6·17 Real Estate Measures On Site
Jamsil Designated as Land Transaction Permission Zone
"Prices Will Rise Anyway" Regulatory Resistance
Gimpo Avoids Regulation, Balloon Effect Causes Rush

"Properties that were going to be sold before June due to holding taxes have already been sold. Right now, it's actually quiet. Although designated as a land transaction permission zone, many people still believe prices will rise anyway." (A real estate agent in Jamsil-dong, Seoul)

"Gimpo has become 'Geumpo.' Even before the announcement, rumors spread that it would be excluded from the regulated areas, so inquiries about pre-sale rights are flooding in. Sellers are reluctant to sell even at higher prices." (A real estate agent in Geolpo-dong, Gimpo)

On the afternoon of the 17th, when the government announced comprehensive additional real estate measures, the atmosphere in Seoul's Gangnam area and Gimpo, Gyeonggi Province, was contrasting. Instead of curbing expectations for house prices in regulated areas, a clear balloon effect is emerging, with demand shifting to non-regulated areas.

◆"Prices will rise anyway"... Indifferent Jamsil= Following the government's announcement, Seoul City designated the entire areas of Samseong, Cheongdam, and Daechi-dong in Gangnam-gu, as well as Jamsil-dong in Songpa-gu, including the International Exchange Complex District, as land transaction permission zones. However, there was little significance attached to this in the area. Since the comprehensive ban on mortgage loans for apartments over 1.5 billion KRW included in the December 16th measures last year, the market has already been reorganized mainly around asset holders, and tax-avoidance listings have been exhausted. Due to more than twenty frequent measures, there is a strong perception of "prices will rise again anyway." A representative from a real estate agency in Jamsil-dong said, "Urgent sales to avoid holding taxes were mostly exhausted by the end of May with payment conditions, and the land transaction permission zone designation was anticipated since early this month, so there has been no particular reaction."

Els and Rescentz in Jamsil-dong have reportedly seen several gap investments completed recently. For example, an 84㎡ unit in Els was sold for 1.83 billion KRW last month but jumped to 2 billion KRW on the 2nd of this month. The current asking price exceeds 2.1 billion KRW. According to nearby real estate offices, prices are strong due to the recent development of the Jamsil MICE complex and the groundbreaking of the Seongdong Global Business Center (GBC). Since the land transaction permission zone designation on the 23rd will impose a two-year residency obligation, many expect gap investments to significantly decrease.

Concerns have also been raised about new niche demand emerging due to government regulations. For instance, a 27㎡ unit in Rescentz, priced around 1 billion KRW, has a share area of 13㎡, which is below the 18㎡ threshold for permission. Gap investment demand might concentrate on such small housing units. Additionally, some tenants, feeling burdened by the residency requirement, have pressured landlords to sell the property cheaply before regulations apply.

There are even worries about a "balloon effect within Gangnam," where demand shifts to the outskirts of the permission zones. A representative from a real estate agency in Apgujeong-dong, Gangnam-gu, said, "Demand from provinces is steady but not large. Many cases involve people who basically live there. The areas now designated have already risen significantly due to development prospects, and with these new regulations, investors are likely to turn their attention to Apgujeong or Banpo areas."

◆Fired-up Gimpo: "The government has basically pointed out an investment destination"= Ironically, the measures have ignited an unexpected market. On the same day, real estate offices in Gimpo were flooded with calls. While most metropolitan areas are designated as adjustment zones, Gimpo, along with some areas like Paju, was excluded, attracting demand that escaped regulation. A representative from a real estate agency in Geolpo-dong said, "Pre-sale rights for Hangang Metro Xi Phase 2, with move-in next month, are being traded like hotcakes. The premium for a 59㎡ move-in right, which was around 110 to 130 million KRW earlier this month, has now jumped to 140 to 170 million KRW." He added, "Buyers are flooding in, but sellers are not answering calls," noting that many homeowners are withdrawing their listings.

The most active areas are newly built apartments near stations on the Gimpo Gold Line urban railway, such as Pungmu, Geolpo, Unyang, and Janggi-dong. Investment inquiries targeting gap investments continued late into the evening. In particular, Unyang-dong, with a well-established academy district and commercial area, has seen prices soar as available units have dried up despite the concentration of large new apartment complexes. For example, a 59.33㎡ unit in Bando Yubora Phase 2, which traded at a high of 387 million KRW in April, sold for up to 410 million KRW this month, with current asking prices reaching 430 million KRW. A representative from a real estate agency in Unyang-dong said, "For flagship complexes like Bando Yubora Phase 2 or Hangang New Town Lotte Castle, some buyers would purchase without even seeing the property if gap investment was possible."

Yang Ji-young, director of Yang Ji-young R&C Research Institute, said, "People have become desensitized to the government's real estate measures. Regulations without fundamental solutions like supply inevitably cause a balloon effect, pushing demand to non-regulated areas like Gimpo or adjustment zones with favorable conditions."

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