The Shin Hyun-dae Apartments in Apgujeong-dong, Gangnam-gu, Seoul, have continuously set new record prices as the selection of a construction company for the Apgujeong District 2 redevelopment begins. Last month, a 183㎡ unit was sold for over 10 billion won, followed by a recent transaction of a 108㎡ unit for 7.5 billion won.
On the 2nd, according to the Apgujeong real estate industry, a 108㎡ unit from the 9th, 11th, and 12th buildings of the Shin Hyun-dae Apartments recorded a record high price when it was sold for 7.5 billion won on June 27.
On June 27, the day the government announced high-intensity real estate loan regulations, the highest transaction was made. However, reports of actual transaction prices have not yet been submitted.
A representative from a real estate agency in Apgujeong said, "A 108㎡ unit on the 10th floor of the Shin Hyun-dae Apartments was sold for 7.5 billion won," and noted, "The same building and size on the 6th floor was sold for 7.2 billion won, which means it has increased by 300 million won compared to the previous transaction."
Earlier, a 183㎡ unit in the Shin Hyun-dae Apartments changed hands for over 10 billion won between May and June, setting another record high. According to the Ministry of Land, Infrastructure and Transport's actual transaction price system, a 183㎡ unit on the 12th floor was sold for 10.3 billion won on May 17. On the 1st of last month, a 5th-floor unit of the same size found a new owner for 10.1 billion won.
The record price streak of the Shin Hyun-dae Apartments appears to reflect expectations that prices will rise further as the Apgujeong District 2 redevelopment project progresses smoothly. Currently, District 2 is the fastest among the six redevelopment zones in Apgujeong.
The Apgujeong District 2 redevelopment association issued a bid announcement last month to select a construction company. Bids are set to close on August 11, with a general meeting scheduled for September to finalize the construction company.
The Apgujeong District 2 redevelopment involves building new apartments consisting of five underground floors to a maximum of 65 floors with 2,571 units at the Shin Hyun-dae Apartments in Apgujeong-dong, Gangnam-gu, Seoul. The construction cost for the redevelopment is estimated at 2.7488 trillion won, based on a construction area cost of 11.5 million won per 3.3㎡.
Real estate experts analyzed that, given the already high prices of apartments in the Apgujeong redevelopment area, they will not be significantly affected by the government's June 27 real estate policy. They forecast that, following District 2, other quickly redeveloping complexes such as District 3 in Apgujeong may continue to see record high prices.
Kwon Dae-jung, a professor of real estate at the Graduate School of Sogang University, said, "In the case of Shin Hyun-dae, a 108㎡ unit is traded in the 70 million won range, and the 183㎡ unit is traded in the 100 million won range," and noted, "Even if the government strengthens loan regulations, it's a market where those with substantial financial capacity are transacting, so the prices in District 2 and District 3 in Apgujeong may rise further."