Even after the Oct. 15 measures, which designated all of Seoul and 12 locations in Gyeonggi as land transaction permit zones and capped apartment mortgage loan limits at up to 600 million won, more than 400 record-high price transactions were reported in the three Gangnam districts (Gangnam, Seocho, Songpa). Many record-price contracts were signed in Garak-dong and Jangji-dong in Songpa District and Law and The City in Seocho District.
Record-price resales also continued in areas that had been relatively overlooked by the market due to their more peripheral locations, such as Jagok-dong in Gangnam District, Umyeon-dong in Seocho District, and Geoyeo-dong in Songpa District. Although these areas belong to the three Gangnam districts, transportation conditions are relatively underdeveloped and the locations are on the outskirts, so prices were low and there had been no record-high price transactions. In particular, before the Oct. 15 measures, they were bundled into a regulated area simply because they were in the three Gangnam districts, resulting in disadvantages for loans, among other things.
According to Zigbang, a real estate big data analysis corporations, and the Ministry of Land, Infrastructure and Transport on the 19th, from Oct. 16 to Nov. 17 there were 402 record-high price transactions in the three Gangnam districts. Songpa District had the most with 213, followed by Gangnam District (102) and Seocho District (87). Compared with the previous one-month period, from Sept. 16 to Oct. 15, when there were 315 record-high transactions in these areas, the figure rose 27.6% (87).
Kim Eun-seon, head of the Zigbang Data Lab, said, "The Gangnam area was already a regulated area, so the impact of additional regulations was relatively limited, and with scarce supply and high preference, prices are continuing to rise based on such demand."
By legal dong, there were many record-high price transactions in Garak-dong in Songpa District (54), Law and The City in Seocho District (33), and Jangji-dong in Songpa District (26). In addition, more than 20 record-price contracts were signed in Munjeong-dong (24) and Jamsil-dong (22) in Songpa District.
By complex, there were many record-high price transactions at Helio City in Garak-dong (5), Olympic Family Town in Munjeong-dong (5), Jamsil Els in Jamsil-dong (4), and Useong 4-cha (3).
Record highs also continued in places within the greater Gangnam area where transactions had been relatively rare and prices had stayed low. Gangnam Jagok IPARK in Jagok-dong, Gangnam District (exclusive 84.92㎡) transacted for 2 billion won on Oct. 20. The previous record high was 1.88 billion won on July 15, but after the Oct. 15 measures were announced, it rose into the 2 billion won range. An 84.96㎡ unit in the same complex also transacted for 2.15 billion won on Nov. 2, which was 285 million won (15.2%) higher than the previous record (1.865 billion won on Sept. 16).
Seocho Hills in Umyeon-dong, Seocho District, which transacted on Oct. 30, set a new record at 1.685 billion won, up 105 million won (6.6%) from the previous high of 1.58 billion won on Oct. 13.
Daelim in Ogeum-dong, Songpa District (exclusive 84.91㎡), whose previous record was 1.975 billion won, also transacted for 2.15 billion won on Oct. 30, surpassing 2 billion won, and Sang-a 2-cha (exclusive 84.98㎡) in the same neighborhood and Songpa Reminis 2 Complex (exclusive 84.82㎡) also posted successive record highs. Jangji-dong's Songpa Pine Town Complexes 3, 4 and 5, and Wirye Complex 24, located at the southern edge of Songpa District, also transacted at record highs.
Regarding the rise in prices even in outlying areas of Gangnam, some are calling it a "paradox of regulation." Despite relatively underdeveloped core conditions such as location, transactions had not been active because they were bundled into a regulated area simply for being in the three Gangnam districts, but as many parts of Seoul and the greater capital area together became regulated areas, the relative disadvantage has disappeared.
Kim In-man, head of the Kim In-man Real Estate Research Institute, said, "There were places such as Jagok-dong, Umyeon-dong and Geoyeo-dong where only the administrative district was Gangnam, but they were subject to all of the land transaction permit zone, speculative overheating district and adjustment target area, and unfairly faced regulations. With the Oct. 15 measures, it is as if the penalties have been removed," adding, "They have become the biggest beneficiary areas of this package."