Development Boom Shakes Southwest Area... Magok 84㎡ Approaches 1.5 Billion Won Loan Prohibition Threshold

Le West Complex and Others to Start Construction Soon
Magok 13 Complex 84㎡ Actual Transaction Price 1.49 Billion KRW

[Asia Economy Reporter Ryu Taemin] Following the northeastern area of Seoul, housing prices in the southwestern area are also stirring. The sale prices of small to medium-sized apartments in the Magok district of Gangseo-gu are approaching the loan prohibition threshold of 1.5 billion KRW. The atmosphere is heating up as major infrastructure developments, such as the MICE (Meetings, Incentives, Conferences, and Exhibitions) complex, are steadily progressing.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 28th, an 84㎡ (exclusive area) unit in ‘Magok 13 Complex Hillstate Master’ within the Magok district was traded for 1.49 billion KRW on the 8th of this month, marking a record high. This price rose by 80 million KRW in just two weeks. Compared to the initial sale price of 530.6 million KRW, it has nearly tripled. Currently, the asking price for this size ranges from 1.5 billion KRW to 1.785 billion KRW, and local real estate agencies predict that surpassing 1.5 billion KRW is only a matter of time. In speculative overheated zones like Seoul, if the market price exceeds 1.5 billion KRW, loans from commercial banks are completely prohibited, making this a benchmark for high-priced housing.

Prices of medium to large apartments in surrounding complexes are also soaring. The 115㎡ unit in ‘Magok M Valley 7 Complex,’ considered a barometer of housing prices in the Magok-dong area, changed hands for 1.735 billion KRW on the 8th of this month, recording the highest sale price in the Magok district. The representative of real estate agency A in the area stated, "With successive development prospects, the entire Magok district is gaining popularity," adding, "Recently, inquiries from buyers have increased, but since there are not many listings, prices continue to rise."

The rapid rise in apartment prices in this area is explained by real estate agencies as due to continuous development prospects. The Magok MICE complex ‘Le West,’ which is twice the size of COEX in Samseong-dong, Gangnam-gu, is about to begin construction soon. Le West received its building permit in March and aims for completion in 2024. The ultra-large commercial and office complex ‘One West Seoul,’ located in the center of the Magok district, will also start construction in the second half of the year.

Expectations for the development of a large-scale complex at Gimpo Airport are growing, creating a lively atmosphere in the nearby Banghwa New Town area. Earlier, on the 17th, the Seoul Metropolitan Government selected the 430,000㎡ area around Gimpo Airport as a new target site for specialized urban regeneration as part of a new urban regeneration strategy. The plan is to develop the site into an aviation-related new industry and logistics hub, fostering it as the future industrial center of the southwestern area.

Housing prices in the entire Gangseo-gu are also on the rise. According to the Korea Real Estate Board, the apartment price increase rate in Gangseo-gu was 0.11% in the second week of June and continued to rise at 0.08% in the third week.

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