Apartment prices in major areas of northern Seoul, such as Mapo and Jongno, are rising sharply. As demand from office workers commuting to the city increases, prices for exclusive 84㎡ (national standard) are hovering around 2.5 billion won.
According to the Seoul Real Estate Information Plaza on the 12th, a representative large complex, the Kyunhee Palace Jae 2nd Complex in Jongno, recorded a transaction on March 21 for an exclusive 84㎡ at 2.54 billion won (11th floor). The most recent transaction occurred on the 12th of last month, with the same size changing hands for 2.45 billion won (13th floor).
Kyunhee Palace, completed in 2017, is a representative job-housing proximity apartment that can be reached on foot from Gwanghwamun and City Hall, gaining popularity among office workers and dual-income couples. It consists of four complexes with exclusive areas ranging from 39 to 173㎡, totaling 2,533 units (including 118 officetels).
In the Mapo area, known for easy access to Gwanghwamun and Yeouido, national standard prices neared 2.5 billion won. The exclusive 84㎡ unit at Mapo Prestige Jae was transacted for 2.47 billion won (15th floor) on March 25. Mapo Prestige Jae, completed in 2021, is considered the most expensive apartment in the Mapo area, consisting of 1,694 units. The latest apartment in Mapo, Mapo the Class, completed in 2022, also signed a contract for an exclusive 84㎡ at 2.2 billion won (19th floor) on the 17th of last month.
Apartment prices in Mapo District have recorded a high increase this year, up until the first week of this month. According to the Korea Real Estate Board, the cumulative increase in apartment sales prices in Mapo District as of the 5th is 2.01%. This is higher than Seongpa (4.66%), Gangnam (4.29%), Seocho (3.81%), Seongdong (2.56%), and Yongsan (2.04%). The cumulative increase in apartment prices in Jongno District is 0.66%.
As the national standard apartment prices in the Gangnam area, including Banpo and Jamsil, surpass 4 billion won, apartment prices in major northern areas are also rising, making 'homeownership' in Seoul increasingly difficult. One analysis indicates that a corporate office worker would need to save their entire salary for 31 years without spending a single won to afford an apartment in Seoul.
Real estate platform Dabang analyzed the actual transaction prices reported by the Ministry of Land, Infrastructure and Transport, revealing that the average selling price for apartments between 84㎡ and 85㎡ in Seoul in the first quarter was 1.45981 billion won, indicating that a corporate office worker would need to save their salary for 31 years and 3 months to purchase one. According to a survey conducted by The Federation of Korean Industries targeting the top 500 corporations by sales (126 companies responded), the average annual salary for a new college graduate at big corporations is 46.69 million won.
Ham Young-jin, head of the real estate research lab at Woori Bank, noted, "The trend in apartment purchases this year is 'moving up to a better location' with 'one good property' still in focus, and with a significant reduction in the influx of new apartments in Seoul until next year, the preference for landmark complexes in the area may continue to drive price increases in major northern complexes for the time being."
Yoon Ji-hae, chief researcher at Real Estate R114, stated, "As major complexes in the Gangnam area exceed 100 million won per 3.3㎡, the next-ranked major complexes in northern Seoul are also following suit," and added, "The rapid rise in construction costs is also a factor pushing prices in newly built apartments near the Han River in Seoul to be formed between 1.5 billion and 2 billion won based on national standards."