‘Redevelopment of Jipchangchon and Sinansan Line’ Successive Boons... Yeongdeungpo Apartment Prices Hit Record Highs

'Yeongdeungpo Trio' Apartments Rise Over 300 Million Won in One Year
Public Housing Built in Shantytown and Red-Light District Areas... Escaping 'Underdeveloped Area'
Expectations Rise with Sinansan Line Opening and 2nd Sejong Cultural Center Construction

A view of Yeongdeungpo Art Xi Apartment in Seoul, which is recording new highs due to consecutive favorable factors such as redevelopment of the red-light district and the opening of the Sinansan Line. Photo by Ryu Taemin

[Asia Economy Reporter Ryu Tae-min] "As soon as a property comes on the market, it sells immediately. The price is whatever the seller asks." (Representative of A Real Estate Agency in Yeongdeungpo-gu, Seoul)

Apartment prices around Yeongdeungpo Station in Seoul are hitting record highs day after day. The overall upward trend in housing prices, along with positive factors such as the construction of the 2nd Sejong Center for the Performing Arts and the Sinansan Line, is attracting strong buying demand. Expectations for redevelopment of the semi-industrial area around Mullae-dong, as well as the removal of red-light districts and gosiwon (small rooms for rent) that negatively affected the residential environment in the area, are also pushing up housing prices.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price system on the 25th, apartment prices near Yeongdeungpo Station, known as the "Yeongdeungpo apartment trio"?Yeongdeungpo Prugio, Yeongdeungpo Art Xi, and Mullae Xi?have risen by about 300 to 400 million KRW over the past year. For example, an 84㎡ (exclusive area) unit in Yeongdeungpo Prugio was traded for 1.25 billion KRW on the 25th of last month. Compared to around 890 million KRW at the beginning of last year, this is an increase of 360 million KRW. An 84㎡ unit in Mullae Xi was contracted for 1.47 billion KRW last month, approaching the 1.5 billion KRW threshold that prohibits mortgage loans. This is 300 million KRW higher than January of last year (1.17 billion KRW). The A real estate agent said, "Although the transaction has not yet been officially reported, an 84㎡ unit in Mullae Xi was already traded for 1.5 billion KRW last week."

The same size unit in Yeongdeungpo Art Xi also set a new record price of 1.32 billion KRW on the 6th of this month. This is 290 million KRW higher than the end of 2019 (1.03 billion KRW).

Demand Concentrates on 'Small to Medium-sized Units'... Some Apartments Have 'Buyers Waiting'

Real estate agents report that young buyers are particularly seeking small to medium-sized units in this area. A representative from B real estate agency said, "Because prices are cheaper than in Shingil New Town or Yeouido, there is a lot of demand," adding, "Some apartments even have buyers waiting to purchase."

In 2024, the Sinansan Line, connecting Ansan and Yeouido, will pass through the Yeongdeungpo area. In 2025, the 2nd Sejong Center for the Performing Arts is planned to be built between Mullae Station and Yeongdeungpo Station. A representative from C real estate agency in the area explained, "Yeouido is nearby, and once the Sinansan Line opens, transportation conditions will improve further," adding, "There is also great expectation that the surrounding environment will be significantly improved when a large-scale cultural facility is established." Additionally, the Ministry of Land, Infrastructure and Transport, Seoul City, and Yeongdeungpo-gu plan to demolish the gosiwon area near Yeongdeungpo Station and build 1,200 housing units there. Separately, Yeongdeungpo-gu has announced plans to develop a complex residential area with about 1,500 housing units in the red-light district near the station.

Ham Young-jin, head of the Zigbang Big Data Lab, said, "Apartments near Yeongdeungpo, which have high accessibility to Yeouido and Gangnam, have seen increased demand as the residential environment improves," adding, "The increased regional value is reflected in the prices."

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