Gangnam Area Reconstruction Complexes' Value Soars Ahead of Second Half Move-in

The value of reconstruction complexes in the Gangnam area of Seoul, scheduled for occupancy in the second half of this year, is rising by hundreds of millions of won. This appears to be due to the combined effects of the government's lifting of resale restrictions and the booming subscription atmosphere.

View of downtown apartments from the Seoul Lotte World Tower observation deck / Photo by Yonhap News

According to the Seoul Real Estate Information Plaza on the 11th, the occupancy rights for an 84㎡ unit at "Raemian One Bailey" in Banpo-dong, Seocho-gu (an integrated reconstruction of Sinbanpo 3rd and Gyeongnam) scheduled for occupancy in August, were traded last month for 3.92 billion won (5th floor). Compared to higher floors that changed hands at 3.03 billion won (9th floor) in November last year and 3.2 billion won (13th floor) in December, the price has risen by more than 700 million won.

Raemian One Bailey is called the new flagship property in Banpo-dong. In the first-priority subscription in 2021, 36,116 people applied for 224 units, recording an average competition rate of 161.2 to 1. The initial sale price was 56.68 million won per 3.3㎡.

A representative from a local real estate agency said, "The urgent sale transactions at the end of last year were well-timed," adding, "Currently, there are many listings for 3.8 to 3.9 billion won for 84㎡ units, and those with Han River views are priced at around 4.5 billion won."

The "DH Firstier I-Park" in Gaepo-dong, Gangnam-gu, which will start member occupancy at the end of November (reconstruction of Gaepo Jugong 1 complex), also has occupancy rights for 84㎡ units priced from 2.5 billion to 3 billion won. A 7th-floor unit was already traded for 2.5 billion won in April. The 96㎡ occupancy rights were traded for 3.02 billion won in February and 3.13 billion won in April, rising by more than 100 million won.

In the case of DH Firstier I-Park, member occupancy rights trading became possible from the 4th of this month, and resale of pre-sale rights will be allowed from July 30, so the market expects premiums to rise further. The initial sale price was 47.5 million won per 3.3㎡.

The influx of money into pre-sale and occupancy rights like this is largely due to the signs of a recovery in the previously sluggish real estate market. Buyers are moving before prices rise further amid increasingly fierce subscription competition.

In fact, the volume of resale transactions for apartment pre-sale and occupancy rights in Seoul in May (based on contract date) was 60 cases, three times the 20 cases in March. Since the reporting deadline is at the end of this month, the figure is expected to increase further. According to statistics from the Korea Real Estate Board, Seoul apartment prices have risen for three consecutive weeks recently, with Seocho-gu and Gangnam-gu rising for eight and seven consecutive weeks, respectively.

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