"Originally, this neighborhood does see a rush of jeonse and monthly rental demand in January and February before school starts, but this year listings have been unusually scarce. With the designation as a land transaction permit zone blocking gap investing (sales with jeonse in place), there are simply no listings to come out. It's not a traditional school district like Daechi-dong in Gangnam-gu or Mok-dong in Yangcheon-gu, but Younghoon Elementary, a private school, draws families even from Gangnam. So transactions happen even when prices are pushed up outrageously. If a mid-30-pyeong apartment's jeonse price is 1.1 billion won, that's at Gangnam levels."
At 10 a.m. on Feb. 27 near Gireum Station on Seoul Subway Line 4 in Seongbuk-gu, a staffer at a certified real estate agency said this. Among Seoul's 25 districts, Seongbuk-gu saw the biggest drop in jeonse and monthly rent listings from a year earlier. According to real estate market platform Asil, Seongbuk-gu's jeonse and monthly rent listings fell 84.4% from 1,643 on Feb. 1 last year to 257 as of that day. In Gireum-dong, listings fell 74.1% over the same period, from 254 to 66.
As listings have dwindled, jeonse and monthly rent prices are soaring. According to the actual transaction disclosure system of the Ministry of Land, Infrastructure and Transport, an 84-square-meter unit at Lotte Castle Classia (moved in 2022; 2,029 households), considered the flagship apartment in Gireum-dong, signed a jeonse contract on Feb. 9 with a deposit of 1.08 billion won. Just a month after setting a record high of 900 million won in January, it rose by 180 million won to hit a new high. As of now, three listings for the same size are posted on Naver Real Estate, with asking prices at 1.1 billion won. Even in February last year, jeonse prices were in the 700 million to 800 million won range. Monthly rents have nearly doubled as well. An 84-square-meter unit that transacted in March last year for a deposit of 600 million won and monthly rent of 690,000 won signed a contract in January for a deposit of 600 million won and monthly rent of 1.2 million won.
Raemian Gireum Centerpiece (2019; 2,352 households) in Gireum-dong, adjacent to Younghoon Elementary, Middle and High schools, also has an 84-square-meter jeonse listing at 1.1 billion won. Jeonse prices that were in the 700 million to 800 million won range early last year have risen by nearly 300 million to 400 million won in a year. That is on par with jeonse prices at the three leading complexes in Jamsil, Songpa-gu—"Elite" (Els, Ricenz and Trizium). As of that day, the asking jeonse price for 10 listings of 84-square-meter units at Jamsil Els was 1 billion won. At Ricenz and Trizium, the lowest jeonse asking prices for the same size were 1.145 billion won and 1.09 billion won.
Gireum New Town is drawing attention as a school district in Gangbuk. Seongbuk-gu and Gangbuk-gu have the most private elementary schools in Seoul. Near Gireum New Town are Younghoon Elementary and Younghoon International Middle School, known as the schools attended by the son of Samsung Electronics Chairman Lee Jae-yong, and Mae-won Elementary, Sungshin Elementary and Daeil Foreign Language High School, making the area particularly popular. Gireum Middle School and Sungshin Girls' Middle School are also regarded for their high advancement rates to specialized high schools.
Gireum New Town, one of Seoul's first-round New Towns, is considered to have a well-organized living environment and well-equipped amenities such as department stores. With Line 4, it is not far from central Seoul, and younger residents are moving in quickly. When the Dongbuk Line opens in November next year, transportation is expected to become even more convenient. Using the Dongbuk Light Rail Line, which connects Sanggye and Wangsimni, riders will be able to travel directly from Mia Sageori Station to Wangsimni Station. Station-area development along the Dongbuk Line route is also being actively pursued and is expected to have a major impact on the real estate market.
In addition, "Mia-ri Texas," a red-light district in Seongbuk-gu that had long been a local issue, began demolition late last year, serving as a positive factor. Temporary walls have been installed at the site, and demolition work was in full swing. The area is slated to be transformed into a large complex of up to 46 stories with 2,201 households.