Since the lifting of the land transaction permission area, the 'public dwelling type (exclusive 84㎡)' apartments in Gangnam, Seoul, have been contracted for 4 billion won, and the prices of apartments in the three Gangnam districts are showing signs of rapid increase. While the market is concerned about the side effects of short-term overheating, it is forecasted that this upward trend will be difficult to spread to the overall market.
According to Real Today, a real estate research firm, an analysis of the Ministry of Land, Infrastructure and Transport's actual transaction data (as of the 21st) showed that the average transaction price of apartments in the three Gangnam districts (Seocho, Songpa, Gangnam) from the 12th to the 20th, following the lifting of the land transaction permission area, was 2.45139 billion won, an increase of 8.0% compared to the period before the lifting (2.26969 billion won from the 1st to the 11th).
During the same period, the average transaction price of the remaining 22 districts, excluding the three Gangnam districts, was 918.59 million won, a decrease of 2.6% (24.62 million won). The overall average transaction price in Seoul was 1.11828 billion won, a drop of 1.6% (17.73 million won).
Based on the period from the 1st to the 20th of this month, the average transaction price in the three Gangnam districts (2.31119 billion won) rose by 2.1% compared to the same period last month (2.26472 billion won). In the same period, the average transaction price of the remaining 22 autonomous districts (937.02 million won) fell by 6.2%, while the overall average transaction price for apartments in Seoul (1.13161 billion won) dropped by 8.2%.
Despite the chill engulfing the real estate market due to loan regulations and political instability, the three Gangnam districts have seen transaction prices rise as if fuel has been poured on them since the lifting of the land transaction permission area. Although there were some signs of increase before the lifting, gaps have widened not only with the regions that experienced simultaneous declines but also with those that were previously rising together from the 12th onward.
Looking at the price difference between the three Gangnam districts and the remaining 22 autonomous districts, the gap, which was an average of 1.32648 billion won from the 1st to the 11th, expanded to 132.80 million won from the 12th to the 20th, an increase of 15.6% (203.2 million won).
This phenomenon can also be confirmed in the weekly housing price statistics of the Korea Real Estate Board. As of the third week of this month, the areas with the highest increase in apartment prices were Songpa (0.22 percentage points), Gangnam (0.19 percentage points), and Seocho (0.07 percentage points). These regions have widened the difference in the increase compared to Mapo (0.0 percentage points), Gwangjin (0.04 percentage points), and others that previously experienced simultaneous rises.
In contrast, Dongdaemun (-0.05%), Nowon and Dobong (each -0.04%), and Geumcheon and Guro (each -0.01%) experienced declines. Looking at actual transactions, in Songpa District, about 10,000 households are concentrated, and the asking prices centered around the representative complex known as 'Elite (Jamsil Els, Licent, Tridium)' are skyrocketing.
Based on the 84㎡ type referred to as 'public dwelling type', a contract was signed for Tridium on the 17th for 2.6 billion won, up by 120 million won from the 6th (2.48 billion won). Licent was contracted for 2.7 billion won on the 8th, but the price rose by 50 million won to form a price of 2.75 billion won on the 14th. In Gangnam District, a transaction was successfully completed for Raemian Daechi Palace at 3.55 billion won in December last year, and a contract was made on the 13th of this month for 4.5 billion won, an increase of 4.5 billion won.