530 million won Sanggye-dong apartment in 4 months…Youngkuk ‘cheers’
- on May 23, 2023
House prices in Seoul’s Nowon-gu neighborhood, where ‘yongkuks’ (real buyers who borrowed with their souls) flocked, are rebounding. The short-term plunge in house prices has partially deflated the bubble, and the government has released money through special mortgage loans. However, the warmth of Nowon-gu has not yet spread to Dobong-gu and Gangbuk-gu.
According to the Ministry of Land, Infrastructure, and Transport’s real transaction price disclosure system on the 22nd, 84㎡ dedicated to ‘Summer 1 Charge’ in Hagye-dong, Nowon-gu, found a new owner on the 2nd for 830 million won. This area was traded for 755 million won in February, jumping 75 million won in three months. It is 99 million won higher than this year’s lowest price of 731 million won (January). It is also 120 million won higher than the 710 million won recorded in November last year.
The 49 square meters dedicated to ‘Jugong 8’ in the relay building also changed hands for 550 million won on the 12th. This is 100 million won higher than the 450 million won transacted in February. It is 130 million won higher than the lowest price of 420 million won (May, direct sale) recorded last year.
The 58㎡ dedicated to ‘Sanggye Jugong 6’ in Sanggye-dong signed a purchase and sale contract for 687 million won at the end of last month. In January, the price had dropped to 530 million won (direct sale). In just four months, it has jumped by 157 million won.
Nowon-gu was the center of buying interest from young people in their 20s and 30s in 2021, when house prices soared. In 2021, house prices soared 11.27%, the most among Seoul’s 25 boroughs. Because it is on the outskirts of Seoul, housing prices are relatively cheap, and the reconstruction of old complexes in Nowon-gu has been actively promoted, spurring lending and driving demand to buy homes.
A view of a real estate agency in Nowon-gu. Photo courtesy of News1
As fast as prices rose, the decline was also steep. Prices fell 12.04 percent last year, giving back all of the gains from the previous year. As interest rates rose last year, transactions stopped, and buyers who couldn’t hold on to their properties because of the increased interest burden were forced to sell. However, house prices have rebounded due to the influx of buyers following the plunge and the government’s special mortgage loan earlier this year.
“As house prices continued to fall last year, real estate buyers and investors who had been keeping an eye on the market began to make inquiries earlier this year,” said an official from an A-authorized brokerage in Sanggye-dong, Nowon-gu, “and some of them started to buy, which led to a partial rebound in the prices of houses that were sold out.”
However, an official from a B-certified brokerage in the neighborhood said, “Recently, prices have been lulled as some quick sales have fallen through,” adding, “Although prices have rebounded, there is a strong ‘wait and see’ attitude among interested buyers as no one knows what will happen to prices in the future.”
A view of an apartment building in Dobong-gu, Seoul. Photo by News1
The warmth in Nowon-gu has not reached neighboring Dobong-gu and Gangbuk-gu. Neowon, Dobong, and Gangbuk are known as the “No-Do-Gang” neighborhoods, where home prices have risen together.
“There has been news about the confirmation of the undergrounding of Changdong Station on the Metropolitan Express Railroad (GTX) Line C, but there hasn’t토토사이트 been much change since it was already on the market,” said an official from a C-certified brokerage in Changdong, Dobong-gu. “Transactions have been slow since the beginning of this month after the rush to buy earlier this year.”
“Gangbuk-gu is almost at the end of the line after Nowon-gu and Dobong-gu, so the rebound seems to be coming late,” said a D-certified brokerage official in Mia-dong, Gangbuk-gu, adding, “Since house prices have fallen, there have been steady inquiries from some buyers, but not many transactions.”
Meanwhile, according to the Korea Real Estate Institute’s weekly apartment price trend, house prices in Nowon-gu rose 0.07% as of the third week of this month (Sunday), the fourth consecutive weekly increase. This is the first rebound in a year and four months since the second week of January (10th) last year. However, Dobong-gu and Gangbuk-gu have not been able to escape the downward trend, as the drop has been repeatedly reduced and increased.