Not Gangnambulpae but 'Seocho Bulpae'... Acro Riverview Hits 130 Million KRW per Pyeong

Balloon Effect Avoiding Land Transaction Permission Zones

Apartment complex in Seoul area (Photo by Yonhap News)

[Asia Economy Reporter Ryu Tae-min] Although the housing market slump continues, the rising trend in housing prices in Seocho-gu persists, with transactions exceeding 130 million KRW per 3.3㎡ appearing in Jamwon following Banpo. It is interpreted that demand for a ‘smart single property’ has concentrated in the Seocho-gu area by avoiding designation as a land transaction permission zone.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system on the 13th, a 78.5㎡ (exclusive area) unit in ‘Acro Riverview Shinbanpo’ in Jamwon-dong, Seocho-gu, was traded for 4.38 billion KRW on the 24th of last month, setting a new record price. The supply area of this unit is 109.63㎡, which converts to 33.1 pyeong (3.3㎡). The transaction was made at a price exceeding 132 million KRW per pyeong. This price approaches the per-pyeong price (136 million KRW) of the 84.9㎡ unit in Acro River Park, Banpo-dong.

This 78.5㎡ unit in the complex first surpassed 3 billion KRW in April last year when it was traded at 3.2 billion KRW and had been stable since then. In October last year, the price rose to 3.75 billion KRW, and last month it surged by 630 million KRW to 4.38 billion KRW.

Other complexes in the Jamwon-dong area are also on the rise. Banpo Central Xi 84.98㎡ was traded for 3.63 billion KRW in May, rising by 130 million KRW in just one month. Shinbanpo Xi 84.97㎡ changed hands for 3.6 billion KRW in April, setting a new record price, and Raemian Shinbanpo Palace 84.49㎡ was also traded at the highest price of 3.425 billion KRW in the same month.

This is interpreted as a balloon effect enjoyed by the Seocho-gu area adjacent to the regulated zones due to the extension of the land transaction permission zone regulation. Last month, Seoul City extended the designation of ‘land transaction permission zones’ for Jamsil-dong in Songpa-gu and the areas of Samseong-dong, Cheongdam-dong, and Daechi-dong in Gangnam-gu for one more year. This means that the transaction regulations have been applied for three consecutive years since 2020, and demand is flowing into nearby areas free from regulations.

In fact, among the three Gangnam districts, only Seocho-gu continues to show an upward trend. According to the Korea Real Estate Board, apartment prices in Seocho-gu have risen for 16 consecutive weeks. In contrast, Gangnam-gu turned to a decline for the first time in 17 weeks in the first week of July (-0.01%). Songpa-gu has also recorded a decline for seven consecutive weeks.

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