Since the government's Oct. 15 real estate measures were announced, the housing market trend once led by the three Gangnam districts (Gangnam, Seocho, Songpa) has been shifting this year. Demand for dwelling transaction in Nowon District is rising fast, centered on cost-effective reconstruction listings around 1 billion won. Seongbuk District, adjacent to the city center, is also seeing more transactions and rising home prices.
On the 16th, a tally by the Seoul Real Estate Information Plaza showed that from the 1st to the 15th, Nowon District recorded the most land transaction applications among the 25 districts, with 254 cases. It was followed by Seongbuk District (198), Gangseo District (188), Songpa District (184), and Guro District (163).
That is a stark contrast to last year. From Oct. 16 last year, the day after the Oct. 15 measures were announced, to the end of December, Songpa District had the highest number of land transaction applications at 1,341. Gangnam District (746) and Seocho District (551) also ranked among the top five districts.
While the three Gangnam districts, where prices jumped in a short span, have shifted to a wait-and-see mood, Nowon District is heating up further. Price competitiveness is cited as the driver of the increase in dwelling transaction. According to the Seoul city government, last month the average apartment sale price in Nowon District was 624.71 million won, about one-third of the 2.14981 billion won average in the three Gangnam districts.
Park Hap-su, an adjunct professor at Konkuk University Graduate School of Real Estate, said, "Demand is flocking to dwellings priced at 1.5 billion won or less, where buyers can get loans of up to 600 million won," adding, "Among those, Nowon has many favorable reconstruction catalysts, so many buyers are purchasing dwellings with expectations for future value gains." Representative areas include Sanggye, Junggye and Hagye neighborhoods in Nowon District. If reconstruction proceeds, the housing site for 76,000 households is expected to be reorganized into a northeastern residential complex city for 103,000 households. Nam Hyeok-woo at Woori Bank Real Estate Research Institute said, "There is a notable inflow of buyers who prioritize investment revenue and future value into reconstruction apartments in northern Seoul."
Home prices are rising quickly. According to the Ministry of Land, Infrastructure and Transport's actual transaction disclosure system, a 84-square-meter unit in "Cheonggu 3rd" in Junggye-dong, Nowon District, where reconstruction is underway, set a record at 1.335 billion won on the 8th. A same-sized unit in "Sanggye Jugong Complex 3" also hit a record high, closing at 1.08 billion won on the 8th of last month. "Wolgye Siyeong Apartment (Mirung, Miseong, Samho 3rd)," known as "Mimisam," also renewed its record last month when a 59-square-meter listing sold for 945 million won.
Seongbuk District is also seeing steady growth in dwelling transaction and rising home prices. The standout area is "Gireum New Town" in Gireum-dong. A newly built apartment completed in 2022, "Lotte Castle Classia," set a new record last month at 1.636 billion won for an 84-square-meter unit. "Raemian Gireum Centerpiece" saw the same size trade last month at 1.615 billion won. Asking prices at the two complexes are currently 1.75 billion won to 1.8 billion won.
Professor Park said, "Seongbuk District is a representative bedroom community (bed town) for central Seoul," and noted, "With Seongdong District, which has a similar profile, seeing large price gains last year, purchase demand has increased for the relatively less expensive Seongbuk District." Park added, "Gireum New Town is well maintained and is among the most popular areas within it."