Apartment sale prices in Hanam, Gyeonggi Province, have risen nearly 8% so far this year. Some complexes jumped close to 30%. Excluding Gwacheon and Seongnam, including Bundang, which are called quasi-Gangnam, Hanam has the highest price growth among major areas in Gyeonggi. Apartments with an exclusive area of 84 square meters, known as the national standard size, have recently changed hands for more than 1.5 billion won.
According to the Ministry of Land, Infrastructure and Transport and the Korea Real Estate Board (REB) on the 28th, Hanam's cumulative sale price growth this year was tallied at 7.51% (as of the 22nd). That is more than double last year's annual growth (3.17%). In Gyeonggi, Hanam's growth trails only Gwacheon (20.11%) and Seongnam (13.75%). It outpaced major areas such as Gwangmyeong (5.04%), Yongin (4.2%), and Suwon (2.99%).
Nam Hyeok-u, a real estate researcher at Woori Bank, said, "Hanam borders Songpa District in Seoul, and some areas are part of Wirye New Town, so it has good transport and location advantages. Prices did not rise as much as other areas through last year, so those strengths have stood out this year and pushed prices higher."
Sale prices for apartments around the national standard size in Hanam's key areas have topped 1.5 billion won. In Pungsan-dong, "Misa Riverside Central Xi" saw an exclusive 96.98 square meters complete a transaction at 1.53 billion won on the 19th. It is a complex of 12 buildings up to 29 stories with 1,222 households around 480 Pungsan-dong, which welcomed residents in 2017. The same size transacted at 1.32 billion won on Mar. 14, rising 210 million won (15.9%) in nine months. An exclusive 91.44 square meters in the same complex transacted on the 11th for 1.425 billion won.
Many complexes have risen more than 20% just this year. "Hillstate Powele City" in Gami-dong, adjacent to Macheon-dong in Songpa District, Seoul, finished a transaction for an exclusive 84.42 square meters at 1.528 billion won on the 8th. It transacted at 1.22 billion won on Jan. 25, surging 308 million won (25.2%) in less than a year. The complex, created around 458 Gami-dong, consists of six buildings up to 30 stories with 932 households. Although there are buses to Songpa and Jamsil, the lack of a nearby subway station makes transportation somewhat inconvenient, but sale prices continue to rise.
"Wirye Lotte Castle" in Hak-am-dong, part of Wirye New Town, also saw a sharp price increase this year. On Dec. 2, an exclusive 84.98 square meters completed a transaction at 1.55 billion won. The same size transacted at 1.5 billion won on Nov. 21, so the sale price rose 50 million won in just over 10 days. Compared with the Jan. 10 sale price this year (1.1 billion won), it has risen 450 million won (29.03%) just this year. This apartment complex also recorded 135 sales transactions this year alone. Located around 672 Hak-am-dong, it consists of 14 buildings up to 27 stories with 1,673 households and is a quasi-new build that welcomed residents in 2016.
Experts predict sale prices in Hanam's major complexes could remain high next year as well. Sim Hyeong-seok, head of Udabang Research Institute (professor at IAU in the U.S.), said, "Hanam has good access to Gangnam, and positives such as the potential extension of Line 9 will also influence price increases," adding, "In particular, listings have recently fallen the most in Gyeonggi, so sale prices are likely to stay high going forward."
Yoon Su-min, a real estate specialist at NH NongHyup Bank, said, "In Seoul's Gangdong District, which has good access to Hanam, major corporations such as JYP Entertainment are increasingly moving into places like the Godeok Biz Valley," adding, "Hanam's rising value as a residential base behind these jobs will also affect sale prices."