Last year, the average sale price per 3.3 square meters (one pyeong) of rebuilt apartments in Seoul's Gangnam District topped 1 billion won for the first time.
On Jan. 14, Real Estate R114 said its survey of changes in Seoul apartment sale prices showed the average sale price of rebuilt apartments in Gangnam District rose 24.35% on-year to 1.0784 billion won, entering the 1 billion won range for the first time.
Excluding rebuilds, the average price per pyeong for ordinary apartments in Gangnam District was 847.9 million won, 230.5 million won less. The overall average per pyeong, combining ordinary and rebuilt apartments, was 910.7 million won.
The average sale price per pyeong of rebuilt apartments in Gangnam has risen about threefold compared with the 2015 average per pyeong (351 million won).
Within Gangnam District, rebuilt apartments in Apgujeong-dong, which fronts the Han River, and in Gaepo-dong and Daechi-dong, which have strong school district premiums, saw the largest price gains. The average sale price per pyeong of rebuilt apartments in these areas was 1.4068 billion won in Apgujeong-dong, 1.0123 billion won in Daechi-dong, and 958.7 million won in Gaepo-dong.
In Apgujeong-dong, complexes in Apgujeong Districts 3, 4 and 5, home to the Hyundai and Hanyang apartments, led price increases, while in Gaepo-dong, Useong Phase 6 and Gaepo Jugong Districts 6 and 7 did so; in Daechi-dong, the integrated rebuild of Gaepo Useong Phases 1 and 2 and Daechi Useong Phase 1 and Ssangyong Phase 2, along with Eunma Apartments, drove gains, Real Estate R114 explained.
The strength in home prices at rebuild-advancing complexes in Gangnam District was analyzed as mainly due to investment demand flowing in amid outlooks for future value based on superior location and faster progress in rebuild procedures by complex.
After more than 10 years of stagnation, the rebuild maintenance plan for Eunma Apartments in Daechi-dong was approved by the Seoul Metropolitan Government in September, putting the project firmly on track, and major rebuild complexes such as Gaepo Jugong Districts 6 and 7 and Apgujeong District 2 are accelerating project pushes as they finish selecting builders one after another.
A Real Estate R114 official said, "As the government and local governments express intentions to speed up supply by revitalizing maintenance projects, Apgujeong Districts 3, 4 and 5, Gaepo Useong Phase 6, and Daechi Ssangyong Phase 1 are also signaling the selection of builders this year," adding, "The faster the push for rebuilds centered on older complexes in the greater Gangnam area, the more the upward trend in apartment prices will persist."
According to Real Estate R114's tally, apartment sale prices across all of Seoul rose 12.52% from the end of the previous year. Songpa District (17.52%) and Gangnam District (17.50%) both exceeded 17%, posting high growth rates.