After the "6/27 measures" were announced, Jagok-dong, Segok-dong, and Suseo-dong in Gangnam District, Seoul, have been reaping clear "spillover benefits." Demand targeting Gangnam District is shifting from Daechi, Dogok, and Gaepo-dong to Jagok, Segok, and Suseo-dong. Some apartments are setting new record highs. Sale prices for the 84-square-meter exclusive area (the national standard size) in Jagok, Segok, and Suseo-dong are under 2 billion won, making them relatively more accessible despite the 600 million won cap on mortgages for dwellings.
According to the real estate big data platform Asil on the 12th, the apartment with the most sales transactions in Gangnam District from the 6/27 measures through the previous day was "Segok Prugio" in Segok-dong. A total of 21 transactions were made. On the 19th of last month, an 84-square-meter exclusive unit sold for 1.7 billion won (9th floor), climbing close to the record high of 1.75 billion won set in Aug. 2021.
"Gangnam Jagok I-Park" in Jagok-dong followed with 13 transactions over the same period. The 84-square-meter exclusive unit in this complex sold for 1.88 billion won (14th floor) on Jul. 15, setting an all-time high. On the 28th of the same month, a unit transacted for 1.85 billion won (4th floor), settling the national standard size in the mid- to high-1.8 billion won range.
Raemian Gangnam Hills, located in the same neighborhood, also set a new record high. On Jul. 1, a 91-square-meter exclusive unit transacted for 2.03 billion won (5th floor), surpassing 2 billion won. This complex recorded 10 transactions over the same period.
In Suseo-dong, Kkachi Maeul (12 transactions) and Sindonga (10 transactions) also saw an increase in sales transactions, continuing the string of record highs. In the case of Kkachi Maeul, the largest layout, a 49-square-meter exclusive unit, hit a record 1.62 billion won (8th floor) on Jul. 19. Sindonga likewise set a new record on Jul. 1, with the same layout at 1.6 billion won.
This is clearly a different trend from earlier this year up to the 6/27 measures, when Dogok Rexle (84 transactions), Gaepo Raemian Forest (69 transactions), and Eunma (42 transactions) ranked at the top in Gangnam District by transaction volume. After the measures were announced, Dogok Rexle and Eunma each recorded four transactions, while Gaepo Raemian Forest had five. For these complexes, the 84-square-meter exclusive units are well over 3 billion won.
The market sees buying momentum attaching to Jagok, Segok, and Suseo-dong—areas within Gangnam District but with relatively lower sale prices—since the 6/27 measures. Demand is concentrating on apartments that allow entry into the Gangnam area with the 600 million won mortgage cap. In particular, Suseo-dong has also reflected development benefits as the "Suseo Station Transfer Center Complex Development" project moves forward.
Jo Young-gwang, a researcher at Daewoo E&C (author of "The Peak of Wealth"), said, "There is a significant price gap between Banpo and Daechi, Gaepo and Suseo, Jagok, and Segok-dong in the Gangnam area," adding, "Suseo, Jagok, and Segok-dong are in a 'quasi-Gangnam' location, and buyers who cannot enter the core of Gangnam due to the loan cap are purchasing there."
Park Hap-su, adjunct professor at Konkuk University Graduate School of Real Estate, said, "Jagok and Segok-dong are Bogeumjari housing districts, priced in the mid-1.5 billion to 2 billion won range, which are relatively free from the 600 million won loan regulation," adding, "As expectations build that prices will not fall due to a future shortage of move-in supply, the result has been continued end-user-driven buying."