In Songpa District, where home prices rose the most in Seoul last year, record-high transactions have been occurring back-to-back since the start of the year. After the Oct. 15 real estate measures were announced, apartment sales transactions plunged by about 80%, but demand for a "solid single home" remains, and listings with asking prices raised by several hundred million won are being sold one after another. Despite growing fatigue from lending curbs and soaring home prices, the market is expected to keep rising this year.
According to the Ministry of Land, Infrastructure and Transport's actual transaction price system on the 30th, two 82-square-meter exclusive units at Jamsil Jugong Complex 5 (3,930 households) in Jamsil-dong, Songpa District, each transacted for 4.575 billion won on the 21st. Early last year, they transacted around 3.4 billion to 3.5 billion won, but jumped by more than 1 billion won in a year. The complex is across from Lotte World Tower, giving it a strong location, and its high land share makes it highly viable for reconstruction. With expectations high that once the new apartments are completed they will become Jamsil's flagship complex, there is an outlook that prices will soon jump into the 5 billion won range.
Move-ins have begun at Jamsil Le-El (1,865 households) in Sincheon-dong, and the standard 84-square-meter layout is nearing 5 billion won. A move-in right for an 84-square-meter Jamsil Le-El unit transacted for 4.8 billion won last month. Just a month after the same layout transacted for 4 billion won, the sale price rose by 800 million won. At Jamsil Raemian IPark (2,678 households) in Sincheon-dong, an 84-square-meter unit also changed hands for 4.25 billion won last month. At Olympic Athletes' Media Village (5,540 households) in Bangi-dong, where reconstruction is in full swing, an 84-square-meter unit set a record high by transacting for 3.14 billion won on the 13th. In the 10,000-household mega-complex Helio City in Garak-dong, an 84-square-meter unit also sold for 3.14 billion won on the 2nd, hitting a new high.
In general, apartment sale prices tend to rise when transactions are active. But apartment transaction volume in Songpa District has been declining since October last year. According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, the number of apartment sale transactions in Songpa District (based on contract date) fell from 626 in October to 445 in November, 301 in December, and 141 this month, plunging 77.5% in three months. An employee at a certified real estate agency in Songpa District said, "Sale transactions have continued to decrease since the lending restrictions took effect. Even so, many people inquire about listings saying they want to switch to Songpa. Even with high asking prices, demand for a solid single home is absorbing market supply and pushing prices up."
Nam Hyeok-u of Woori Bank's Real Estate Research Institute said, "A major factor is that upgrade demand from Mayongseong Gwang-dong (Mapo, Yongsan, Seongdong, Gwangjin, Dongdaemun districts) is flocking to Songpa District, where prices are lower than in Gangnam and Seocho. Coupled with a price-leveling effect, one or two transactions are setting new record highs, and that is repeating like an endless loop. It won't be as strong as last year, but the rising market looks set to continue this year."