In Gireum-dong, Seongbuk District, Seoul, an 84-square-meter apartment, known as the "national standard size," changed hands for 2 billion won. In Mullae-dong, Yeongdeungpo District, the same size also changed hands for 1.96 billion won, closing in on the 2 billion won level. The high-priced apartment market, once centered on the three Gangnam districts (Gangnam, Seocho, and Songpa) and "Mayongseong (Mapo, Yongsan, and Seongdong)," is spreading to large complexes in non-Gangnam areas near subway stations.
Gireum-dong and Mullae-dong were once strongly associated with aging housing and industrial zones, respectively. Gireum-dong has turned into a large apartment town through a New Town project, while Mullae-dong, where residential, office, and commercial facilities have entered a semi-industrial zone, is being reappraised as a residential area with good access to Yeouido and the city center.
According to the actual price disclosure system of the Ministry of Land, Infrastructure and Transport and the real estate industry on the 7th, an 84.98-square-meter unit at Raemian Gireum Centerpiece in Gireum-dong, Seongbuk District, set a record high with a transaction at 2 billion won in July. The same size saw transactions at 1.75 billion won in February and 1.85 billion won in June this year. In five months, the upper end of prices rose by 250 million won.
After the 2 billion won transaction, there was also a change of ownership at 1.91 billion won in August. The lowest asking price for 84-square-meter listings is currently 2 billion won, while some high-floor or renovated units are listed for up to 2.4 billion won.
Raemian Gireum Centerpiece is a large complex of 2,352 households that began occupancy in 2019. It is close to Mia Sageori Station on Subway Line 4, and department stores and big-box supermarkets are within walking distance.
Nearby, the 84-square-meter units at Lotte Castle Classia also rose from 1.638 billion won in January to 1.91 billion won in June this year. This 2,029-household complex, which began occupancy in 2022, is lifting the upper price range in the Mia Sageori living area along with Raemian Gireum Centerpiece.
Existing Gireum New Town complexes are following suit. The 84-square-meter units at Gireum New Town Complex 8 Raemian climbed from 1.23 billion won at the end of last year to 1.59 billion won in July, up 360 million won in seven months. The 84-square-meter units at Gireum New Town Complex 6 Raemian also rose from the 1.3 billion won range early this year to 1.545 billion won last month.
In Mullae-dong as well, transactions near 2 billion won continued. The 84-square-meter units at Mullae Hillstate rose from 1.77 billion won in January to 1.85 billion won in July this year, and then recorded a transaction at 1.96 billion won on Aug. 12. Asking prices have surpassed 2 billion won.
Nearby, the 84-square-meter units at Mullae Xi also transacted at 1.95 billion won in July. Compared with 1.57 billion won in Aug. last year, the price is up 380 million won in one year. Current asking prices top out at around 2.05 billion won. Mullae Xi is a 1,302-household complex that began occupancy in 2001, with good access to Mullae Station on Subway Line 2 and to the Yeouido and central business districts.
The market sees the price increases in Gireum-dong and Mullae-dong as a signal that the upper bound of prices in major non-Gangnam residential areas is rising. Some note, however, that it remains to be seen through additional transactions whether prices in the 2 billion won range have become established as local norms.
Sim Hyeong-seok, a senior fellow at law firm Joyul, said it is "a structural upward trend driven by the combination of a shortage of new supply in Seoul and government regulations," adding, "the strength seen in the northeastern area is spreading to the southwestern area."
Ko Jun-seok, a professor at the Sangnam Institute of Management at Yonsei University, said, "Areas with good transportation and job proximity like Gireum and Mullae see steady demand," adding, "prices around 2 billion won may not be a temporary peak but could settle as a new benchmark."