The real estate market in Dongdaemun District, Seoul, is heating up. In particular, apartment prices in the Imun and Hwigyeong area are rising quickly, with record-high transactions following one after another. With city-center accessibility, transportation networks, and New Town benefits aligning, analysts say end users are flocking to complexes priced around 1 billion won, which are relatively less burdensome.
According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system on the 6th, an 84-square-meter unit in Ssangyong Apartment in Imun-dong, Dongdaemun District, Seoul (moved in 2000; 1,318 households) changed hands for 1.14 billion won on the 2nd. It is the highest price ever for the same size in this complex. The same layout had transacted in the 700 million to 800 million won range for about the past two years, but prices began to rise quickly after Oct. last year, surpassing 1 billion won in Feb. this year.
Nearby complexes are also on the rise. An 84-square-meter unit in Hyundai Apartment in Imun-dong (moved in 2000; 601 households) transacted for 708.5 million won in May last year, but set a record high when it changed hands for 1 billion won on the 12th of last month. An 84-square-meter unit in Daewoo Apartment in Imun-dong (moved in 2001; 490 households) also transacted for 970 million won on Apr. 22.
These complexes are older apartments completed more than 20 years ago, but their strength is that they are station-area complexes close to Sinimun Station on Subway Line No. 1. Using the subway, it takes around 20 minutes to reach downtown business districts such as Jongno and Gwanghwamun. With apartment prices in major areas of Seoul having risen sharply recently, demand is flowing into complexes around 1 billion won that offer city-center accessibility.
Loan conditions are also influencing buying interest. Many major older complexes in this area are priced at 1.5 billion won or less, allowing buyers to take out a mortgage loan of up to 600 million won. A person at a certified real estate agency in Imun-dong said, "It's not easy to find an apartment in the low 1 billion won range close to downtown Seoul," adding, "Newlyweds or young end users, for whom the prices of new-build complexes are burdensome, are turning their eyes to older station-area complexes."
The halo effect from the development of the Imun–Hwigyeong New Town is also cited as a factor driving prices higher. Last year, large new-build complexes such as Raemian La Grande, Hwigyeong Xi Decentia, and Imun I'Park Xi were built one after another in the area. Combined, the three complexes comprise about 9,000 households. As large new apartments have moved in, surrounding roads, commercial districts, and living infrastructure have been upgraded, and even nearby older complexes are being reappraised, according to analysts.
Kim Hyo-seon, senior real estate expert at KB Kookmin Bank, said, "As the New Town project improves the residential environment and living infrastructure, nearby older apartments are drawing renewed attention," adding, "It appears the New Town halo effect is at play, with new-build complexes lifting local prices and nearby older complexes following suit."
Transportation positives are also boosting expectations for rising home prices in Dongdaemun District. Nearby Cheongnyangni Station is a transfer hub served by five lines, including Subway Line No. 1, the Gyeongui-Jungang Line, and the Suin-Bundang Line, as well as the KTX. On top of that, expansions such as the GTX-B and C lines, the Myeonmok Line, and the Gangbuk Transversal Line are planned. If the projects materialize, the Cheongnyangni Station area is expected to further strengthen its status as a transportation hub in northeastern Seoul.
A real estate industry official said, "Dongdaemun District has a location competitive enough to be compared with Seongdong District, but home prices are relatively lower, making it a region noted for cost-effectiveness," adding, "Among them, the trend of demand concentrating on undervalued older complexes is likely to continue for the time being."
In fact, the apartment price growth rate in Dongdaemun District is high even by Seoul standards. According to Apartmentner's Market Trends Report, from May last year to Apr. this year, the average sale price of mid-sized apartments in Dongdaemun District, Seoul, was 1.09551 billion won. That is up 13.14% from the previous one-year average of 968.27 million won. It was the highest growth rate among the 25 autonomous districts of Seoul during the same period.