Jamsil Apartment 25-Pyeong Also Exceeds 2 Billion Won

Els Apartment Sold for 2.09 Billion Won
Designated as Land Transaction Permission Zone Last Year
Speculative Transactions Blocked but Price Increase Unstoppable

[Asia Economy Reporter Kim Hyemin] Following Gangnam and Seocho districts in Seoul, the price of small apartments with a 59㎡ (exclusive area) in Jamsil-dong, Songpa-gu, has also surpassed 2 billion KRW. Although the government designated this area as a land transaction permission zone last year to block speculative transactions, the upward trend in housing prices has not been curbed. Since most apartments in the Jamsil-dong area are trading around 1.9 billion KRW, the number of transactions exceeding 2 billion KRW is likely to increase.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 30th, a 59㎡ unit in Els Apartment in Jamsil-dong, Songpa-gu, was traded for 2.09 billion KRW on the 28th of last month. This is a new record price, rising by 140 million KRW in just half a month from 1.95 billion KRW on the 13th of the same month. This is the first time that the actual transaction price of a small apartment in Songpa-gu has exceeded 2 billion KRW.

The previous highest price for apartments of this size in Songpa-gu was at Jinju Apartment in Sincheon-dong, which was traded for 1.99 billion KRW in January. The Jinju Apartment saw significant investment demand due to the reconstruction premium.

Els Apartment is a 13-year-old complex rebuilt from the former Jugong Apartments, and since it was designated as a land transaction permission zone last year, sales are only allowed for actual residence purposes. The fact that small units in such complexes have exceeded 2 billion KRW reflects the rising trend in housing prices in the Jamsil area.

In fact, although transactions sharply decreased after the designation of the land transaction permission zone in Jamsil-dong in July last year, the price increase trend has hardly slowed. According to the Seoul Real Estate Information Plaza, there have been a total of 446 apartment sales transactions in Jamsil-dong, Songpa-gu, over the 15 months since the designation, a 74% decrease compared to 1,706 transactions in the same previous period. However, prices have risen by at least 20 million KRW and up to over 100 million KRW each time a transaction occurs. For example, the 85㎡ units in Els have increased by 400 million KRW from 2.1 billion KRW to 2.5 billion KRW even after the zone designation.

An industry insider said, "Jamsil is an area with limited supply but steady demand," adding, "Due to multi-homeowner regulations, interest in a single solid property in the Gangnam area has increased, and since it is not far from Daechi-dong in Gangnam-gu, demand considering the educational environment is gathering."

Cases of small apartments in the Jamsil area exceeding 2 billion KRW are expected to increase further. Nearby Resence was traded for 1.98 billion KRW on the 10th of last month, and Trizium and Parkrio have recently set new record prices of 1.945 billion KRW and 1.95 billion KRW, respectively, this month.

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