It was found that the price of old apartments in Seoul this year doubled compared to new ones due to expectations for reconstruction.
It is interpreted that this is because more complexes are speeding up reconstruction to avoid the ‘2 years of real residence’ obligation that has been imposed since the second half of last year, and expectations for reconstruction have increased due to the easing of real estate regulations in the Seoul mayoral election.
According to Yonhap News and the Korea Real Estate Agency’s weekly apartment price trend survey statistics on the 9th, apartment prices in Seoul for more than 20 years have risen by 2.40% on a cumulative basis from this year to last week.
This is exactly twice as high as the 1.20% increase in new construction with less than 5 years of construction during the same period.
Looking at the five districts in Seoul, the price of apartments over 20 years in the southeast (Gangnam, Seocho, Songpa, and Gangdong-gu) rose the most at 3.08%. It was followed by 2.35% in the northeast area, 2.07% in the southwest area, 1.63% in the northwest area, and 1.21% in the downtown area.
In the southeastern region, also called the ‘Gangnam region’, major reconstruction complexes such as Apgujeong, Daechi, Seocho, and Jamsil-dong are concentrated, and these complexes have driven the rise in overall apartment prices.
Usually, it is believed that new apartment prices will rise faster and older apartment prices will rise more slowly, but since old apartments can be reborn as new apartments soon after being reconstructed, the price has a characteristic that the price jumps when business promotion gains momentum.
Park Won-gap, senior real estate expert at KB Kookmin Bank, said, “As prices rose a lot last year, mainly in newly built apartments, the prices of newly built apartments followed. It was also one of the reasons that led the atmosphere.”
Reconstruction complexes such as Apgujeong Hyundai Apartments, as the government decided not to grant occupancy rights to reconstructed apartments in the overheated speculative district after approval for the establishment of a cooperative in the June 17 measures last year, hastily pursued projects, such as obtaining permission for establishment of a cooperative in order to avoid this regulation. did.
In the process of the April 7 by-election, major candidates pledged to ease real estate regulations also fueled the rise in apartment prices for reconstruction.
Although the city of Apgujeong, Yeouido, and Mok-dong has grouped four areas, including Apgujeong, Yeouido, and Mok-dong, as a land transaction permit zone for one year due to overheating of reconstruction apartment prices, expectations for easing reconstruction regulations are not fading, and Mayor Oh Se-hoon is loosening reconstruction regulations one by one.
The rise in apartment prices under reconstruction also led to an increase in house prices in the area as a whole.
This year, apartment prices in Seoul rose 1.79% on a weekly basis until last week.
By classification, Songpa-gu rose the most with 2.89%, followed by Nowon-gu (2.82%), Seocho-gu (2.58%), Gangnam-gu (2.40%), Mapo-gu (2.14%), and Yangcheon-gu (2.08%).
All of these areas have major reconstruction complexes.
Jamsil Jugong 5 Complex, Songpa-gu, one of Seoul’s representative reconstruction complexes, celebrated its 44th year of construction. The apartment’s exclusive area of 82.51㎡ was traded at a new price of 2.81 billion won (13th floor) on the 13th of last month, up more than 500 million won from 2.3 billion won (3rd floor) in January.
In Apgujeong-dong, Gangnam-gu, apartment sales stopped sharply after the land transaction permission zone was designated. On April 26, just before the regulation, a 91.21 m² dedicated to Hanyang 1st car was sold for 3.1 billion won (seventh floor), which increased by 600 million won compared to 2.5 billion won (fifth floor) in December last year.
In the case of 106.25㎡ in Banpo Jugong 1 Complex, Seocho-gu, which was completed in 1973 and is about to be reconstructed, 800 million won in 5 months from 3.7 billion won (5th floor) in December last year to 4.5 billion won (4th floor) on the 15th of last month. The price of 145.13㎡ in Mok-dong New Town Complex 3, Yangcheon-gu, which passed the first safety examination, jumped from 1.98 billion won (7th floor) in January this year to 2.72 billion won (5th floor) in April this year.
Even in Nowon-gu, where there are many low- and mid-priced apartments, the 12th 66.56㎡ building in Sanggye-dong, which was built for 33 years, rose from 678 million won (15th floor) in January of this year to 840 million won (11th floor) on the 19th of last month, setting a new record until recently. continued
Reconstruction complexes are encouraged when Mayor Oh Se-hoon recently formulated a plan to ease reconstruction to speed up housing supply.
Apgujeong-dong A certified representative said, “After the designation of the land transaction permit zone, the transaction cliff situation is getting worse to the extent that there is no newly reported sale price, but the high asking price is still maintained. There is an expectation that there will be a general election and local elections next year, so the atmosphere of the uptrend is not likely to be extinguished easily,” he said.
Reporter Kim Hyun-joo [email protected]
photo = Yonhap News
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