Yangcheon District in Seoul has shown the highest increase in housing prices per unit area nationwide over the past month. It is analyzed that the rise in housing prices in Mokdong is influenced by the accelerated pace of reconstruction in the Mokdong New Town complexes 1 to 14.
According to the real estate big data analysis firm Real Estate Jiin on the 27th, during the recent month (from May 21 to June 21), properties in Yangcheon District were sold for an average of 50.67 million won per 3.3 square meters (based on supply area). The sale price increased by 1.21% compared to the previous month (49.81 million won). Yangcheon District has the highest rate of increase among all autonomous regions (cities, counties, districts) in the country. Although there are many areas that have risen over 1% over the past month, such as Sejong City (1.16%), Seoul's Seongdong District (1.08%), Gangnam District (1.07%), and Songpa District (1.03%), Yangcheon District has the highest increase rate.
The rise in housing prices in Yangcheon District is a result of the sharp price increase of the Mokdong reconstructed apartment complexes. The Mokdong reconstructed complexes continue to set new record-high prices due to expectations for reconstruction. On the 7th, a 101 square meter (6th floor) unit in Mokdong New Town Complex 7 was traded for 3.02 billion won, setting a new record. On the 10th, a 142 square meter (1st floor) unit in Mokdong New Town Complex 6 was traded for 3.7 billion won, renewing its record.
Mokdong New Town was developed with 14 complexes from 1985 to 1988. It consists of a total of 392 buildings and 26,629 households. According to the city of Seoul, the designation of maintenance zones has been completed for five complexes, including complexes 6, 8, 12, 13, and 14, while the review and public inspection for five complexes are currently underway. The 6th complex in Mokdong New Town also obtained approval for the establishment of a reconstruction maintenance business association on the 22nd of last month.
Kim In-man, head of the Kim In-man Real Estate Economic Research Institute, said, "Mokdong is a central area in the western part of Seoul, and many people from nearby areas want to enter Mokdong due to its good educational environment. Recently, there has been a trend of accelerating reconstruction permits issued by the city, which is significantly increasing prices, mainly for reconstructed apartments." Noh Si-tae, a real estate expert at KB Kookmin Bank's WM Promotion Department, also noted, "Since last year, the designation of maintenance zones and the passing of safety inspections for Mokdong apartments have progressed simultaneously," adding that "the belief that Mokdong reconstruction will proceed rapidly is spreading in the market, reflecting in the prices."