"Still, We Rise"... New Highs at Banpo 1st Complex and Yeouido Sambu

Reconstruction Benefits and Prime Riverside Complexes Hit Record Highs
"There May Be Surplus Funds Demand, but Beware of Self-Transactions"

Panpo Jugong Complex 1st District, 3rd Section view. / Photo by Asia Economy DB

[Asia Economy Reporter Noh Kyung-jo] Despite the nationwide decline in housing prices, some complexes in Gangnam and Yeouido, Seoul, are still seeing record-high transactions. These include complexes benefiting from redevelopment projects or those with views of the Han River linked to such projects.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 19th, the 140㎡ unit in Banpo Jugong Complex 1 in Seocho-gu, currently undergoing demolition for redevelopment, was traded for 7.15 billion KRW on the 3rd of this month. Excluding a canceled case in May this year where the same size unit was traded at 7.1 billion KRW, this price is 550 million KRW higher than the actual transaction price of 6.6 billion KRW in June.

Banpo Jugong Complex 1 (Districts 1-4) is considered the largest redevelopment project located along the Han River. Through redevelopment, the existing 3,590 households will be transformed into over 7,000 new apartments. Due to its large scale, the project is being carried out in two sites. Districts 1, 2, and 4 will be transformed into 'The H Clast' (5,335 households), and District 3 into 'Prestige by Raemian' (2,091 households).

The 89㎡ unit in Cheongdam Xi, Gangnam-gu, also recorded a new high price of 3.65 billion KRW on the 8th. This is 150 million KRW higher than the 3.5 billion KRW transaction for the same size unit in February last year. This complex, composed mainly of small to medium-sized units, also boasts a strong advantage of Han River views.

In Yeouido, a 146㎡ unit in Sambu Apartment was traded for 3.2 billion KRW at the end of August, setting a new record price. This is 170 million KRW higher than the 3.03 billion KRW transaction on July 7th, less than two months earlier.

Sambu Apartment, completed in 1975 with a maximum of 15 floors and 866 households, is currently pursuing a redevelopment project with a height of over 60 floors. It was selected as a target site for the New Town Planning by Seoul City in June. It is the second largest complex in Yeouido after Sihum Apartment (1,584 households) and is a 3-minute walk from Yeouinaru Station on Subway Line 5.

A representative from a local real estate agency said, "Major redevelopment complexes in Yeouido have been recording new high prices intermittently from May to July, and Sambu Apartment's rise is a natural progression," adding, "This reflects strong expectations for redevelopment."

Additionally, an 84㎡ unit in Hills State 1 Complex in Samseong-dong was traded for 2.8 billion KRW on the 30th of last month, 20 million KRW higher than the previous record price. Although this increase is not as significant as in other complexes, real estate agents say it is maintaining a solid stable trend. Also, a 182㎡ unit in Yeouido Xi was traded for 3.2 billion KRW last month, 470 million KRW higher than the previous record price of 2.73 billion KRW (March last year) for the same size.

Kim Kyu-jung, head of the Asset Succession Research Institute at Korea Investment & Securities, said, "People with extra funds are consistently interested in complexes located along the Han River or considered major redevelopment projects," but cautioned, "Considering the market situation, it is necessary to be wary of self-trading and similar activities."

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