In the Seongdong and Gwangjin districts of Seoul, it has been found that apartment sales listings have evaporated by 25% over the past month. This is interpreted as a surge in buying demand avoiding land transaction permit zones.
According to big data platform Asil on the 28th, the number of sales listings in Seongdong decreased from 2,458 to 1,859, a drop of 24.4% (599 cases) over the past month (from May 26 to June 25). By district, the highest decrease was seen in Seongsu-dong 1-ga (-33.8%), followed by Geumho-dong 1-ga (-33.0%), Haengdang-dong (-32.8%), and Okus-dong (-31.3%).
Investment demand is surging as the project in the Seongsu Strategic Maintenance Zone is being undertaken in earnest. District 1 of the Seongsu Strategic Maintenance Zone is considered the largest redevelopment project along the Han River and is approaching the contractor selection in the second half of this year. Companies such as Hyundai E&C, GS Engineering and Construction, and HDC Hyundai Development Company are vying for construction rights. Additionally, demand for high-rise residential complexes like Acro Forest, Trimaje, and Galleriaフォレスト in Seongsu 1-dong has also increased.
Apartment listings in Gwangjin also decreased significantly. During the same period, they fell from 1,669 to 1,270, a drop of 24.0% (399 listings). By district, Gwangjang-dong saw a steep drop from 418 listings to 265, a decrease of 36.7%. Nearby, Jayang-dong saw a reduction from 637 to 476 listings.
Gwangjin is evaluated positively due to its proximity to Seongdong, where development opportunities are at play, and a well-established school district. Gwangjin is home to several educational institutions, including Daewon Foreign Language High School (Junggok 1-dong), Sunhwa Arts High School (Neungdong), Gwangnam High School (Gwangjang-dong), Gwangyang High School (Jayang-dong), and Konkuk University High School (Hwayang-dong), making it a noted area for education following Gangnam.
The decrease in sales listings in both districts is partly due to the fact that the so-called 'gap investment' is still possible. With the Seoul city government designating the three districts in Gangnam and all of Yongsan as 'land transaction permit zones', there has been a surge in demand seeking alternative options. As a result, sales listings have also sharply decreased in Dongjak (-16.1%), Mapo (-15.5%), and Yeongdeungpo (-14.5%) districts over the past month.
Ham Young-jin, head of the real estate research lab at Woori Bank, noted that the decrease in listings in the area reflects demand that was anticipated before being included in land transaction permit zones due to redevelopment projects and advantages along the Han River. He added, 'With few listings available, there are signs of an overheated market where contracts are being signed without viewing the properties.'
Meanwhile, according to the Korea Real Estate Board (REB), the apartment sale prices in Seoul have increased by 0.43% compared to the previous week as of this week (based on the 23rd). This marks the largest increase in 6 years and 9 months since the second week of September 2018 (0.45%). Seongdong saw a rise of 0.99%, breaking its previous record of the highest rate of increase (0.76%) set last week. Mapo (0.98%) also surpassed its previous record (0.66%) from a week earlier. Gwangjin (0.59%) exceeded its record from the first week of February 2018 (0.55%).