Reconstruction apartments that jump hundreds of millions of dollars in anticipation of the mayor’s election in Seoul

Enter 2021.01.20 11:00

Ahead of the government’s announcement of the expansion of housing supply and the by-election of the Mayor of Seoul in April, reconstruction apartments are being shaken.

According to the real estate industry on the 20th, property lockouts have occurred in major reconstruction complexes in Seoul and prices are continuing to rise. Interest is focused on reconstructed apartments that can be transformed into a’smart one’, and transactions that are concluded at a price that exceeded the previous sale price of 200 million won at a time are also on the rise.

According to the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system, 81㎡ (2nd floor) exclusively for Jamsil Jugong Complex 5, Jamsil-dong, Songpa-gu, Seoul, was traded at 2.281 billion won on December 30 last year. Earlier on the 17th of the same month, a sale with the same area and number of floors was traded for 2,280 million won. From September to November, the number of transactions was only 5, but in December alone, 10 transactions were concentrated. Considering that the actual transaction price reporting period remains for about 10 days, the number of transactions is likely to increase further.

An official of a nearby A-licensed brokerage firm said, “As it is a complex that has been repeatedly destroyed by the former mayor, there seems to be an expectation for the by-election.”

An apartment of 1,356 households in Jamsil-dong, Songpa-gu, also rose 200 million won in 15 days. The area for exclusive use of this apartment was 151m2, and traded at 3.3 billion won and 3.39 billion won respectively on December 16 and 18 last year. The trading price on the 2nd of the same month was 3.15 billion won.

The area of ​​Sanggye-dong, with more than 30,000 households subject to reconstruction, is also writhing. All 3,155 households in Sanggye Jugong Complex 1~16 have been relocated for 35-40 years, and are severely deteriorated, but only 8 complexes with 830 households (Forena Nowon) have been rebuilt.

An official at the Sanggye-dong B-accredited brokerage office said, “The market price is steadily rising as complexes that have recently started or passed preliminary and precise safety inspections are coming out one after another.” .

According to the actual transaction price disclosure system of the Ministry of Land, Infrastructure and Transport, the 37m2 area dedicated to’Sanggye Jugong Complex 5’was reported on December 18 at 650 million won. Compared to the price that was traded at 480 million won in January last year, the market price has risen more than 35% in a year.

The 58㎡ area dedicated to’Sanggye Jugong Complex 6′, which is undergoing precise safety checkups, was also traded at 740 million won on December 15 last year, a 42% increase from the beginning of the year (520 million won). Construction companies have already posted promotional banners throughout the apartment, reminiscent of a festive atmosphere.

Gangnam’s’reconstruction bosses’, who had been slowing for a while due to the government’s reinforcement of safety inspection procedures last year, are also stretching. The exclusive area of ​​163m2 for’Hyundai 8th’ apartment in Apgujeong-dong, Gangnam-gu, which was sold for 3 billion won in July last year, was traded at 3.7 billion won on the 12th of this month. It is 700 million won in half a year.

The exclusive area for Eunma Apartments in Daechi-dong, Gangnam-gu, Seoul, was also sold at KRW 2.4 billion on December 18, recording a reported price. The apartment price rose to 2.38 billion won in August and fell to 2.2 billion won in November.
Experts advise that the reconstruction business environment may change if a new mayor is elected, but that does not guarantee that it will accelerate quickly, so it is better not to expect excessive expectations.

Lee Chang-moo, professor of urban engineering at Hanyang University, said, “Although the government policy focuses on public redevelopment and reconstruction, it is the keynote to increase the supply of downtown Seoul anyway.” “Some complexes that were delayed due to the conflict with the city of Seoul are likely to progress smoothly. There is,” he said. He added, “However, it is important to keep in mind that the reconstruction business is a very uncertain business.”

Professor Shim Gyo-eon of Konkuk University said, “Even if the opposition market comes out, will it be easy to overcome the central government’s key to restraining reconstruction and give a business license?” He said. “Keeping in mind that a pledge is only a pledge, we must carefully approach the purchase of reconstruction. “He said.

Seo Jin-hyung, chairman of the Korean Real Estate Association, said, “There is a possibility that major urban and station areas such as Gangnam and Jamsil are rebuilt, but there is a possibility that it will become a’Aemul complex,’ leaving the outskirts and non-station area complexes with poor business feasibility.” “We should avoid buying it because it is perceived as’reconstruction for sale’ because it is inexpensive,” he said.