Housing Prices in Jangwi New Town Soar Due to Redevelopment... Villas Jump by 200 Million Won

Surge in Investment Inquiries for Public Redevelopment Areas 8, 9, 11, and 12
Old Row Houses and Multi-family Homes Increase by 183 Million KRW in 6 Months
84㎡ Apartments in Redeveloped Areas Soar Past 1 Billion KRW After Move-in

[Asia Economy Reporter Jo Gang-wook] Housing prices in Jangwi New Town, the largest new town in Seoul, are soaring. Coupled with expectations for the government's public redevelopment project, prices of old row houses and multi-family homes in major redevelopment zones have risen by around 200 million KRW over the past six months.

According to KB Real Estate Live On and related nearby brokerage firms on the 1st, inquiries about investment in districts 8, 9, 11, and 12 within Jangwi New Town, where public redevelopment is being promoted, have surged recently. These districts were originally designated as redevelopment zones but were deregulated due to low resident consent rates.

For example, a 32㎡ (exclusive area) row house within the new town, which was traded for 229 million KRW in July last year, was sold for 412 million KRW in December of the same year. This represents an increase of 183 million KRW in six months.

District 15, which was also deregulated, is seeing redevelopment expectations revived. This district recently won a lawsuit against Seoul City to invalidate the deregulation, opening the way for project resumption. Districts 3 and 14 have received approval for association establishment, while districts 4, 6, and 10 are in the stage of management disposition plan approval.

The price increase trend is also steep in complexes that have already completed projects and moved in. The market prices for 84㎡ units in ‘Raemian Jangwi Fore County (District 1)’, ‘Kkum-ui Sup Kolon Haneulchae (District 2)’, ‘Raemian Jangwi First High (District 5)’, and ‘Kkum-ui Sup I-Park (District 7)’ have all surpassed 1 billion KRW. The ‘Kkum-ui Sup Kolon Haneulchae’ 84㎡, which was the first to be occupied in the new town in 2017, currently has prices ranging from 1.065 billion to 1.14 billion KRW. Compared to January last year, this is an increase of 195 million to 205 million KRW.

Similarly sized units in Raemian Jangwi Fore County and Raemian Jangwi First High are priced between 1.06 billion to 1.15 billion KRW and 1.09 billion to 1.215 billion KRW, respectively. The same size units in Kkum-ui Sup I-Park, which moved in last December, were sold for 1.3 billion KRW in September last year, marking the highest price among apartments in the area.

The rise in housing prices in Jangwi New Town is explained by nearby brokerage firms as a combination of redevelopment expectations and the effect of the Metropolitan Area Express Train (GTX). A GTX-C line station is planned to be built at Gwangwoon University Station on Subway Line 1 nearby.

However, there are also warnings against blind investment in deregulated areas. An industry insider said, "Although deregulated zones in Jangwi New Town have applied for public redevelopment, none have been confirmed as candidate sites yet, so caution is needed when investing."

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