Apartment prices in Guro District, which had relatively lower entry prices than major areas of Seoul, are also stirring. The sale price for an 84㎡ exclusive area in a popular complex in Sindorim is nearing 2 billion won, setting a record high, and top-price transactions are continuing in small and midsize complexes in Gaebong-dong and Guro-dong. Analysts say rising jeonse prices and a shortage of jeonse listings are shifting purchase demand to lower- and mid-priced complexes on the outskirts of Seoul.
According to the actual transaction price disclosure system of the Ministry of Land, Infrastructure and Transport on the 27th, an 84㎡ exclusive unit at "Sindorim 4th e-Pyeonhansesang" in Sindorim-dong, Guro District, Seoul, changed hands for 1.89 billion won on the 21st, marking a record high. The same size transacted for 1.685 billion won on June last year, up 205 million won in one year. The increase rate is about 12.2%.
Sindorim e-Pyeonhansesang is a large complex with phases 1 through 7 clustered along Sindorim-ro. The entire development comprises 59 buildings and 4,224 households. Phase 4, which set the record this time, has 853 households and is close to Sindorim Station, an interchange for Seoul Subway Lines 1 and 2. With Sindorim Elementary, Sindorim Middle, and Sindorim High within walking distance, it is considered one of the most favored complexes in Guro District.
Record-high transactions are also continuing in other small and midsize complexes in Guro District. A 59㎡ exclusive unit at "Shinyoung G Well Estate Gaebong" in Gaebong-dong transacted for 800 million won on the 20th of this month. Considering that the same size transacted for 750 million won in February, it rose 50 million won in four months. A 56㎡ exclusive unit at "Samsung Raemian" in Guro-dong also changed hands for 860 million won early this month. The same size went for 677 million won in July last year, jumping more than 180 million won in less than a year.
Data from the Korea Real Estate Board (REB) also shows a clear uptrend in Guro District. As of the fourth week of June, the cumulative change in this year's apartment sale price index for Guro District was tallied at 6.67%. The increase for the same period last year was just 0.61%. Among Seoul's 25 districts, only Seongbuk District and Gangseo District have higher growth rates than Guro District. The Korea Real Estate Board (REB) analyzed, "Guro District saw gains mainly in key complexes in Gaebong-dong and Guro-dong."
Experts say Seoul's jeonse crunch is stimulating purchase demand. As it becomes harder to find jeonse listings and jeonse prices rise, end-users are moving to areas with relatively lower purchase price burdens. Compared with Gangnam, Mayongseong (Mapo, Yongsan, and Seongdong districts), and Mok-dong, Guro District has a lower price entry barrier and many complexes with favorable transport access such as Lines 1, 2, and 7, drawing growing interest from end-users.
Yang Ji-young, a senior manager in the wealth management department at Shinhan Investment & Securities, said, "As it has become harder to find jeonse listings, buyers are switching to purchases centered on areas where sale prices are relatively affordable," adding, "Guro District is one of the representative areas drawing in this kind of demand."
Nam Hyeok-u of the Woori Bank Real Estate Research Institute said, "Guro District still has small and midsize apartments in the 600 million to 700 million won range, drawing strong demand from people looking to buy homes," adding, "As long as Seoul's jeonse crunch and the appetite for lower- to mid-priced purchases persist, upward price pressure is likely to continue."