[Home Tech] Policies to Capture the Appeal of Maseong (Mapo and Seongdong)

This year, the regions in Seoul that have seen the highest increase in apartment prices are Songpa, Seocho, and Gangnam districts, in that order. According to statistics from the Korea Real Estate Board, the cumulative increase in home prices in the three Gangnam districts from the beginning of the year to last month exceeded 10%, with Songpa district recording a 13.09% rise. This means that an apartment in Songpa that traded for 2 billion won at the start of the year has increased by more than 260 million won in just eight months. The average annual comprehensive income in Songpa district is 53.2 million won (based on 2023 National Tax Service data). The pace of asset value growth is far outstripping the increase in earned income.

The so-called "Mayongseong" area-Seongdong (9.19%), Mapo (7.65%), and Yongsan (6.97%)-has also shown a distinct upward trend. In particular, Seongdong district recorded an additional 3.59% increase even after the June 27 policy measures, achieving the highest growth rate nationwide despite financial regulations. Despite the global economic slowdown, a nationwide real estate slump, and stringent regulations, the three Gangnam districts and the Mayongseong area remain among the few regions maintaining strong performance.

On the 27th, apartment prices in Mapo and Seongdong districts of Seoul were announced to have risen the most sharply since the related statistics began to be published in 2013. The expectation that Seoul apartment prices will continue to rise is forecasted to sustain the upward trend for the time being. The photo shows the view of apartment complexes in downtown Seoul from Namsan, Seoul. 2025.06.27 Photo by Yoon Dongju

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Currently, the three Gangnam districts and Yongsan district are the only areas in the country designated as speculative, speculative overheating, and adjustment target zones, and from March to the end of September, all areas have been classified as land transaction permit zones. Given that actual transaction prices have surged every time these designations were lifted in the past, there is a strong possibility of re-designation at the end of this month. Furthermore, if the authority to designate land transaction permit zones is expanded to include not only the Seoul mayor but also the Minister of Land, Infrastructure and Transport under the September 7 supply measures, Mapo and Seongdong could also be newly designated.

The reason for the attention on the "Mayongseong" area is simple. Located between Gangnam and downtown, it offers excellent accessibility to business districts. It also boasts a pleasant residential environment, with amenities such as Seoul Forest and the Gyeongui Line Forest Trail. With the Han River in between, the "Maseong" area enjoys locational advantages, facing the Gangnam region.

However, each area within Mayongseong has its own distinct characteristics. In Seongdong district, ultra-high-priced complexes along the Han River in Seongsu, Oksu, and Geumho-dong drive the market. Newly built high-rise apartments in Seongsu-dong are trading at over 20 million won per 3.3 square meters, while riverside properties in Oksu-dong are being sold in the 8 to 9 million won range. In contrast, small, older buildings without river views are priced in the 2 to 3 million won range, resulting in a price gap of more than five times between neighborhoods. The difference based solely on Han River views is about 1.7 times.

In Mapo district, trendy residential areas in Hapjeong, Sangsu, and Mangwon coexist with large-scale redevelopment complexes in Ahyeon and Yeomni, and mid-to-large-sized apartments in Sangam and Gongdeok. Newly built apartments in Ahyeon, Aeogae, and Ewha University Station-areas with concentrated real demand-are leading the price increases. However, overall, prices are evenly distributed across the district, with Ahyeon at 1.2 to 1.3 billion won, Sangam at 1 to 1.1 billion won, and Mangwon at around 1.1 billion won, resulting in a general price range of 1.1 to 1.3 billion won across the district. Unlike Seongdong district, where ultra-high-priced complexes raise the average, Mapo district exhibits a relatively uniform price trend overall.

This difference raises questions about whether blanket regulations at the administrative district level can effectively function in the actual market. It is necessary to carefully consider whether designating entire areas as land transaction permit zones can minimize side effects while producing effective policy outcomes. In particular, redevelopment projects in Seongdong and Mapo districts play a crucial role in supplying homes desired by real demand in the northeastern and northwestern areas, which means there is also potential for demand and overheating. A strategy is needed to balance short- and long-term housing supply through appropriate regulation and timely supply during the regulatory period.

Ultimately, regulation in the "Maseong" area is not merely a price stabilization measure but an issue directly linked to the long-term foundation for housing supply. Even if short-term overheating is curbed, unless supply is addressed, market distortion fueled by anxiety among buyers may persist for an extended period. What is needed now is not simply expanding regulations, but a more precise approach that reflects the unique characteristics of each area.

Kim Hyosun, Chief Real Estate Specialist, NH Nonghyup Bank

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