Gangnam Area's Largest Mid-Rise Reconstruction 'Eunma', Only 3 Out of 10 Residents Live There

Seoul 4 Complexes Show Upward Trend Since 2013
Eunma Apartment 34-Pyeong Records 2.1 Billion Won

[Asia Economy Reporter Jo Gang-wook] It has been analyzed that among the 10 owners of Eunma Apartment in Daechi-dong, Gangnam-gu, the largest mid-rise reconstruction complex in the Gangnam area of Seoul, only about 3 actually reside there. In particular, despite the government's pressure on multi-homeowners to dispose of properties last year, the proportion of inheritance and gifts in the total transactions of this apartment exceeded that of sales.

On the 8th, according to an analysis by the Korea Urban Research Institute of ownership status based on 11,155 registry copies as of August 31, 2020, from four Seoul complexes?Eunma in Daechi-dong, Mapo Raemian Prugio in Ahyeon-dong, Jugong 5 Complex in Sanggye-dong, and Hangaram Apartment in Ichon-dong?the unit price per area for each complex showed an upward trend around 2013.

In the case of Eunma, the 31-pyeong type was priced at 930 million KRW and the 34-pyeong type at about 1.15 billion KRW in 2006, but after hitting the lowest price in 2013, prices steadily rose, reaching 1.9 billion KRW and 2.1 billion KRW respectively last year. The 34-pyeong type of Mapo Raemian Prugio surged more than twice from about 740 million KRW in 2015 to about 1.57 billion KRW last year, and Hangaram's 33-pyeong type also rose from about 820 million KRW in 2006 to about 1.61 billion KRW last year.

The average actual residence rate across the four complexes was 32.7%. The relatively new Mapo Raemian Prugio had a higher actual residence rate of 41.8%, but Eunma was only 31.5%. Hangaram and Sanggye Jugong 5 Complex recorded 29.1% and 12.5%, respectively. Especially in Eunma, the actual residence rate was 58.8% in 1999 but has continuously declined to 51.1% in 2005, 45.5% in 2010, and 36.6% in 2015. While housing prices rose due to reconstruction expectations, the living conditions deteriorated due to aging, causing the actual residence rate to drop sharply.

The proportion of inheritance and gifts in ownership transfers is also rapidly increasing. This trend has become clear since 2017. In Eunma, the number of gift and inheritance cases surged from 43 cases (17.3%) in 2019 to 81 cases (55.1%) last year, surpassing sales cases (65 cases, 44.2%) for the first time since 1999. In Sanggye Jugong 5 Complex, gift and inheritance cases were fewer than five between 2008 and 2015 but increased to 18 cases (21.2%) in 2018 and 16 cases (26.7%) last year. Hangaram also recorded its highest-ever gift and inheritance ratio of 28.3% (15 cases) last year.

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