Six months after Seoul City applied the land transaction permit system across the three Gangnam districts and Yongsan District, the so-called "balloon effect" has been concentrated in Gangdong District. That is because the average apartment price in Gangdong District hit an all-time high. During the same period, 5 of the 10 apartment complexes with the most transactions in Seoul were in Gangdong District.
According to the Seoul Real Estate Information Plaza on the 5th, the average apartment price in Gangdong District in September was 1.33806 billion won, breaking the previous record high set in 6월 (1.30558 billion won). After briefly cooling following the 6·27 measures that introduced a 600 million won cap on home mortgage loans, it rose further in three months. The average apartment price in Gangdong District was 1.11471 billion won in July and 1.13574 billion won in August.
Districts cited as "balloon effect" areas under the land permit system, such as Mapo and Seongdong, failed to surpass their June peak prices. The average apartment prices in Mapo District in June and September were 1.54657 billion won and 1.41772 billion won, respectively. Seongdong District was tallied at 1.77321 billion won and 1.60535 billion won.
The number of transactions at major apartment complexes in Gangdong District is also among the highest across Seoul's cities and counties. According to the real estate big data platform Asil, the apartment complex with the most transactions in Seoul from 3월 25th, right after the expansion of the land permit system, to 1st of this month was Godeok GRAZIUM (4,932 households, completed in 2019) in Godeok-dong, Gangdong District. A total of 159 transactions took place over about six months. During the same period, Godeok Arteon (4,066 households, 2020) in Sangil-dong had 140 transactions, Seonsa Hyundai (2,938 households, 2000) in Amsa-dong had 138, Godeok Raemian Hillstate (3,658 households, 2016) in Godeok-dong had 126, and Gangdong Lotte Castle First (3,226 households, 2008) in Amsa-dong had 116. All ranked within the top 10 for apartment complex transactions in Seoul.
Including those apartments, major large complexes in Gangdong District have recently seen a flurry of "reported highest prices." An 84-square-meter exclusive unit at Godeok GRAZIUM transacted for 2.54 billion won (10th floor) on 9월 19th. At Godeok Raemian Hillstate, the same size changed hands for 2.05 billion won (29th floor) on the 5th of the same month. The same size at Gangdong Lotte Castle First also hit a high of 1.695 billion won (23rd floor) on 8월 30th. At Raemian Solvenue (1,900 households), a new large complex in Myeongil-dong, an 84-square-meter exclusive unit sold for 2.095 billion won on 20th of last month, setting a reported high.
The apartment market in Gangdong District has become what is called a "bull market," underpinned by the balloon effect as well as a preference for new builds. About 20,000 new-build apartments have been constructed in the Godeok district of Gangdong. The move-in of Olympic Park Foreon in Dunchon-dong, which began in Nov. last year, also drew attention to Gangdong District. Analysts also note that the absolute price level is lower than in Mapo and Seongdong, making it easier to access amid limited lending.
Park Hapsu, an adjunct professor at Konkuk University Graduate School of Real Estate, said, "The new-build effect in Gangdong District that started with Olympic Park Foreon is quite powerful in terms of volume," adding, "Recently, prices are rising even for apartments in Myeongil-dong that are slated for reconstruction."