Gangnam Housing Demand Booming

Samsung Electronics is building three 32-to-44-story buildings as part of its new Samsung Town building complex in Seocho-dong, Seoul, and plans to move in by 2008.

Kim Gwang-tae, the managing director of Public Relations at Samsung Electronics, said, “If we go to Gangnam, we can save the time of negotiating with information and communication businesses and semiconductor laboratories in Suwon and Giheung, Gyeonggi Province. We can also expect a synergy effect with the IT venture enterprises located in Gangnam.”

Hyundai-Kia Motors, which moved to Yangjae-dong, Seocho-gu from Gye-dong, Jongno-gu in November 2000, completed the construction of a twin building next to the main office earlier this month and is currently moving in.

LIG Insurance Company (previously LG Insurance) sold its office building in Da-dong Jung-gu, and moved its main building to Yeoksam-dong Gangnam-gu this February. Last October, Meritz Fire & Marine Insurance Company (previously Dongyang Fire & Marine Company) also moved its main office from Yeouido to Yeoksam-dong, Gangnam-gu.

Smaller businesses are moving to Gangnam as well.

Heo Nam-il from Hanseung Engineering and Construction that is building office buildings in the Samsung Town area, which is estimated to have a population flow of 200,000 people a day, says, “The sales price is 15 million won per pyeong. This is a fairly high price, but we were sold out in a week. Samsung-related businesses took 30% of the units.”

This phenomena can also been confirmed by polls. According to the statistical survey of businesses taken by the National Statistical Office in 2005, 398 business main offices are clustered in the Gangnam-Yeoksam-Seolleung area of No. 2 subway. This is a number exceeding that of Yeouido (341) and Myeong-dong (254).

More housing needed-

One Hyundai Motors deputy manager doesn’t feel very good whenever he looks at the real estate part of the newspaper. This is because of the move that the company’s headquarters made in November 2000.

The deputy manager, who lived in Imun-dong Dongdaemun-gu at the time, wondered whether he should move to Gangnam. With the move of the headquarters, it would take longer for him to go to and from work. However, due to his wife’s opposition, he gave up the idea. The reason for this was that even if they got a loan, they would have to get a smaller house.

He says, “We fought a lot when we heard the people who moved to Gangnam made a lot of money. We’re still looking for a way to move there.”

According to the National Statistical Office, the difference between the daytime population (population in the area in the day time) and settled population in Gangnam area is 409,253, exceeding the average of Seoul (22,491) by more than 18 times. This means most of Gangnam’s office workers don’t live near Gangnam.

These people are categorized as the ‘Gangnam Reserve Labor Army.’

A realtor at Seocho-dong said, “Enquiries from Samsung Electronics workers about Woo Sung and Shindongah apartment near the Samsung Town are increasing. The number of workers who have already bought an apartment in this area is not small.”

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