Changing Market Sentiment with 'Redevelopment and Reconstruction', DUnique Gangdong Twenty-First: Noteworthy Areas?

The redevelopment and reconstruction projects in the real estate market are showing remarkable performance. Since these projects are mainly carried out in old and deteriorated residential areas concentrated in the old downtown, the value of the region is being re-evaluated, which further leads to an increase in housing prices.

The most representative example is Ahyeon New Town in Mapo-gu, Seoul. It is a large-scale redevelopment project constructing about 18,500 households over an area of 1,088,000㎡ in the Mapo-gu area. Starting with ‘Raemian Gongdeok 5th’ (Gongdeok 5 District) in 2011, followed by ‘Mapo Raemian Prugio’ (Ahyeon 3 District) in 2014, and ‘Mapo Xi 3rd’ (Yeomni 2 District), ‘Mapo Prestige Xi’ (Yeomni 3 District), and ‘Gongdeok SK Leaders View’ (Mapo-ro 6 District) in 2021, these complexes have completed occupancy.

Among them, Mapo Prestige Xi entered the ‘20 Billion Club’ in December 2020, becoming the first apartment in Mapo-gu with a real transaction price exceeding 2 billion KRW for an 84㎡ exclusive-use apartment, emerging as the highest-priced complex in the northern Seoul area.

Recently, Gangdong-gu has been gaining attention as an area shedding its relatively underdeveloped old downtown image and standing shoulder to shoulder with the Gangnam 3 districts. This is because numerous redevelopment and reconstruction projects are underway, including the ‘Dunchon Jugong’ reconstruction project, known as the ‘largest reconstruction since the era of Dangun.’ The ‘Olympic Park Foreon,’ reborn through reconstruction, is a large complex with about 12,000 households and is regarded as a project that will bring much-needed supply to Seoul. Other projects such as ‘Sindonga 1 & 2’ in Gildong and ‘Cheonho Redevelopment Promotion District’ in Cheonho-dong are also in progress.

Based on this, housing prices in Gangdong-gu have been rising daily. According to monthly time series data released by KB Real Estate, as of July, the average sale price per square meter in Gangdong-gu recorded 14.201 million KRW. Since surpassing 13 million KRW for the first time in May last year, it has risen by more than 1 million KRW in one year, which translates to about a 100 million KRW increase when converted to an 84㎡ exclusive-use apartment. In fact, despite the nationwide real estate market entering a correction phase this year, Gangdong-gu’s average apartment prices have risen for 37 consecutive months through June.

Amid this, new complexes are being supplied in areas where the value of the real estate market is expected to rise due to redevelopment projects.

First, in areas with many redevelopment projects waiting, such as Dunchon Jugong, ‘The Unique Gangdong Twenty First’ has opened its model house and is currently offering units for sale.

Located in Gildong, Gangdong-gu, this officetel consists of 63 units and 7 live office units with exclusive areas ranging from 28 to 84㎡, built from three basement floors to 20 floors above ground, along with neighborhood living facilities. Since it is under 100 units, resale of pre-sale rights is allowed. In addition to redevelopment projects, Gangdong-gu is actively expanding its transportation network, with construction underway on the subway Line 8 section from Amsa to Guri to Byeollae, scheduled for completion next year, and the extension of Line 9 Phase 4 is also being promoted. This complex, expected to see significant value appreciation along with Gangdong-gu, will hold its subscription on the 30th, announce winners on the 31st, and proceed with contracts starting September 1st.

This content was produced with the assistance of AI translation services.