New Apartments in Yeouido and Jamsil After 18 Years... Surrounding Reconstruction Complexes Stirred Up

This year, new apartments are set to appear in Jamsil, Songpa-gu, Seoul, and Yeouido, Yeongdeungpo-gu for the first time in 18 years, drawing attention. The main projects are 'Jamsil Raemian I-Park,' a reconstruction of Jinju Apartment, and 'Brighton Yeouido,' built on the former MBC site.

Brighton Yeouido Bird's-eye View / Image Provided by Shinyoung

According to the real estate industry on the 5th, Yeouido MBC Site Complex Development PFV, which includes Shin Young, GS Construction, and NH Investment & Securities as members, plans to supply Brighton Yeouido apartments as a 4-year short-term private rental this month before converting them to sale units.

The complex consists of two apartment buildings and one officetel building, ranging from 6 basement floors to a maximum of 49 floors above ground. Shin Young initially planned to sell 454 apartment units and 849 officetel units together in 2019. However, when the government introduced the price ceiling system, the apartments switched to post-sale, which is not subject to price restrictions. At that time, the officetels sold out at an average price of 43.05 million KRW per 3.3㎡. Afterward, the apartment completion was delayed due to COVID-19, and the sales schedule was naturally postponed.

The apartment sale price was initially set by Shin Young at over 100 million KRW per 3.3㎡, but considering the economic downturn, they switched to a rental for 4 years followed by sale. If the housing market recovers in the future, there is a possibility that the sale price at conversion will be set higher.

This complex is attracting much attention because it is the first new apartment in Yeouido in 18 years since 'Yeouido Xi' was sold in 2005. Since new apartments are very scarce in the area, it is expected to serve as a benchmark for the reconstruction projects of older complexes. In Yeouido, reconstruction is underway for complexes including Simbeom, Hanyang, and Sambu Apartments, which follow Seoul’s new planning, as well as Gongjak, Daegyo, and Jinju Apartments. Essentially, the entire Yeouido area is bustling.

Interest in Jamsil Raemian I-Park, scheduled for sale within the year, is similar for the same reason. It is the first supply in the area in 18 years following the sales of Jamsil Els, Parkrio, and L’centz. The existing 1,507-unit Jinju Apartment was jointly constructed by Samsung C&T and HDC Hyundai Development Company. It is being transformed into 2,678 units across 34 buildings, ranging from 4 basement floors to 35 floors above ground, with 578 units available for general sale.

Currently, in Songpa-gu, reconstruction is accelerating in areas including Jamsil Jugong 5 Complex and the so-called 'Olympic Big Three'?Asia Athlete’s Village in Jamsil-dong, Olympic Athlete’s Village in Bangi-dong, and Olympic Family Town in Munjeong-dong.

Generally, new apartments act as a price increase factor for surrounding older complexes. Unless in special cases, new apartment sale prices are set high, so surrounding older complexes tend to follow. Of course, Yeouido and Jamsil also have significant regional characteristics such as location.

Kim Gyu-jung, head of the Asset Succession Research Institute at Korea Investment & Securities, said, "Although there are differences depending on new supply volume, moving demand, and brand, it is true that new apartments positively reflect future value and contribute to rising local housing prices. Especially, new supply in Yeouido or Jamsil after a long time will serve as a guide in setting sale prices because the surrounding older complexes have a clear purpose of reconstruction."

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