Small Apartments in Non-Gangnam Areas Also Surpass '1.5 Billion Loan Prohibition Line'... Over 10 Out of 25 Districts in Seoul

Newly Built Small Apartments in Godeok District Soon to Join 'Ultra-High-End Housing'
11 out of 25 Districts in Seoul Exceed 1.5 Billion KRW for Small Units
1 in 5 Seoul Apartments Subject to 'Loan Ban'

Seoul Gangdong-gu Godeok-dong Godeok Gracium Apartment exterior view (Photo by Ryu Taemin)

[Asia Economy Reporter Ryu Taemin] As housing prices continue to rise, the sale prices of small apartments outside the Gangnam area are also surpassing the "loan prohibition line" of 1.5 billion KRW. This year, for the first time in Gangdong-gu, a 59㎡ (exclusive area) apartment was traded at 1.5 billion KRW. As a result, among the 25 autonomous districts in Seoul, the number of districts where small apartment prices have exceeded the loan prohibition line has increased to 11.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 13th, a 59㎡ apartment in Godeok Gracium, Godeok-dong, Gangdong-gu, Seoul, was traded at 1.5 billion KRW on the 9th of last month, marking a record high. This is the first case in Gangdong-gu where the actual transaction price for this size exceeded 1.5 billion KRW. In speculative overheated districts such as Seoul, if the market price exceeds 1.5 billion KRW, loans from commercial banks are completely prohibited, making it a benchmark for high-priced housing in the market.

Godeok Gracium, which has been occupied since September 2019, is a large complex with 4,932 households and has been leading the housing prices in the area since its occupancy. Among the newly built complexes in the Godeok district, including Godeok and Sangil-dong with about 17,000 households, it is forming the highest market price.

The prices of small and medium-sized apartments in surrounding complexes are also approaching the loan prohibition line. A 59㎡ apartment in Godeok Arteon was traded at 1.4 billion KRW, and the same size in Godeok Raemian Hillstate was traded at 1.375 billion KRW, with prices rising by more than 200 million KRW in the past year. The representative of a real estate agency (licensed) in the area said, "The entire Godeok district is gaining popularity due to the formation of large complexes," adding, "Especially, Godeok Gracium, which is considered the flagship apartment, has high subway accessibility and thus has the highest market price."

'Small Apartments Surpass 1.5 Billion KRW' in More Than 10 Districts... One in Five Seoul Apartments 'Loan-Prohibited'

Despite the government's strong measure of a complete loan ban, among the 25 autonomous districts in Seoul, 11 districts including Gangdong-gu have seen actual transaction prices for 59㎡ apartments exceed 1.5 billion KRW. In Heukseok-dong, Dongjak-gu, the Acro Riverheim apartment of the same size was traded at 1.64 billion KRW in December last year, marking the highest price among small apartments outside the Gangnam area. Small apartments in key non-Gangnam areas such as Hangang Hanshin (1.61 billion KRW) and Gangbyeon Imkwang (1.6 billion KRW) in Seongdong-gu Seongsu-dong, Sinchon Grangjai (1.6 billion KRW) in Daehyeong-dong, Mapo-gu, and Hangaram (1.6 billion KRW) in Ichon-dong, Yongsan-gu, have also surpassed not only the loan prohibition line but also the 1.6 billion KRW barrier.

Additionally, small apartments in △Mok-dong New Town 7 Complex, Yangcheon-gu △Mapo Prestige Xi in Yeomni-dong, Mapo-gu △Mapo Raemian Prugio in Ahyeon-dong, Mapo-gu △Gangchon in Ichon-dong, Yongsan-gu △Gyeonghuigung Xi 2 Complex in Hongpa-dong, Jongno-gu △E-Pyeonhansesang Oksu Park Hills in Oksu-dong, Seongdong-gu △Gwangjang Hillstate in Gwangjang-dong, Gwangjin-gu have also been listed among ultra-high-priced housing.

As small apartment prices outside the Gangnam area soar, the proportion of high-priced apartments has also rapidly increased. According to Real Estate 114, as of the end of last year, the proportion of apartments exceeding 1.5 billion KRW in Seoul was 20.78%, up about 5 percentage points from the end of the previous year. According to data on "Transactions of apartments priced over 1.5 billion KRW nationwide" submitted by the Ministry of Land, Infrastructure and Transport to Representative Jeong Dongman of the People Power Party, there were 7,912 transactions of apartments priced over 1.5 billion KRW in Seoul last year, a 58.5% increase compared to 4,991 transactions in 2018.

Professor Shim Gyo-eon of the Department of Real Estate at Konkuk University said, "Despite the pressure of tax increases, demand for a 'smart single home' has increased," adding, "Since there is a high preference for newly built apartments, even small housing types are in high demand, so prices are expected to rise further."

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