House Prices in 'Jamsil' After Rollercoaster Ride... 2.1 Billion → 1.4 Billion → 1.8 Billion

Els Small Units Surge from 1.4 Billion to 1.8 Billion
'El.Li.Te' 84㎡ All in 2.1 Billion Range
Songpa Housing Prices Recover Amid Loan Rate Stabilization and Regulation Easing

The housing prices in Jamsil-dong, Songpa-gu, Seoul have experienced a rollercoaster ride. The price of small units (exclusive area 59㎡) in Jamsil Els (5,678 households), which plummeted from the boom period's 2.1 billion KRW range to the slump period's 1.4 billion KRW range, has surged back up to the 1.8 billion KRW range. Songpa, which saw a particularly large price drop compared to other Gangnam areas, is showing a clear recovery thanks to the stabilization of loan interest rates and deregulation.

[Image source=Yonhap News]

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 10th, a 59㎡ unit in Jamsil Els signed a sales contract for 1.8 billion KRW on the 6th. This apartment's price for the same area had risen to 2.19 billion KRW in September 2021 during the real estate boom. Due to interest rate hikes and the economic downturn, it plunged vertically to 1.49 billion KRW in December last year, but recovered to the 1.6 billion KRW range in January this year, the 1.7 billion KRW range in March, and pushed up to 1.8 billion KRW in May. The magnitude of the decline and rise is rollercoaster-level.

The sharp price reversal in Jamsil Els is also clearly evident in larger units with lower transaction volumes. A 119.93㎡ unit was sold for 3.4 billion KRW on the 29th of last month. This matches the highest price of 3.4 billion KRW recorded in November 2021. It successfully recovered the actual transaction price after about 1 year and 5 months. In March, it was traded at 3.15 billion KRW.

Jamsil Els, along with Rescence (5,563 households) and Tridium (3,696 households), are called the ‘Elite’ leading apartments in Songpa-gu. They are redevelopments of Jamsil Jugong Complexes 1, 2, and 3, respectively. Songpa-gu, which has many large complexes, experienced a particularly large price drop among the three Gangnam districts during the real estate slump. As a result, the price of the Elite standard unit (84㎡), which once rose to 2.7 billion KRW, fell below the psychological threshold of 2 billion KRW. For example, an 84㎡ unit in Jamsil Els was traded for 1.87 billion KRW in January.

Most apartments in Jamsil-dong were designated as land transaction permission zones, which caused a severe transaction freeze and a large price drop at that time.

The recent sharp turnaround seems to be influenced by the stabilization of loan interest rates due to two consecutive base rate freezes and the allowance of mortgage loans over 1.5 billion KRW. A representative from real estate agency A in Jamsil-dong said, "As the properties that had to be sold quickly due to interest rate burdens were all exhausted, homeowners started raising their asking prices," adding, "There are now no listings below 2 billion KRW for 84㎡ units." In fact, looking at the highest actual transaction prices of the Elite in April, Jamsil Els was at 2.185 billion KRW, Rescence at 2.17 billion KRW, and Tridium at 2.1 billion KRW. Another representative from real estate agency B in Jamsil-dong added, "With loans over 1.5 billion KRW now possible, there is a continuous influx of young buyers trying to enter the Gangnam area before Seoul housing prices rise further." According to the Korea Real Estate Board, Songpa-gu recorded the highest number of apartment purchases by buyers aged 30 or younger in Seoul in March (97 cases).

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