Reconstruction apartments, first increase in 4 months

The market price range for a 15-pyong (unit of area) Kangdong-gu Koduk Jugong apartment is around 580~590 million won as of Sunday, February 29. Compared to last year’s lowest price of 530 to 540 million won, it represents an increase of 50 million won or 10 percent.

The third distribution selling price for the 103-pyong Tower Palace in Dogok-dong Kangnam-gu is around 270-280 million won, an increase of 185 million won (7 percent) on average during February as its entry date is nearing.

Market conditions are favorable for reconstructed and complex residential buildings.

According to the real estate industry on Sunday, the distribution selling price for reconstructed and complex residences in the national capital region, including Seoul, have shown the highest monthly increase in February since last October.

-“Spring breeze in February’s residential market”

According to Doctor Apartment, the market price for reconstructed houses all over the nation

increased by merely 2 percent during February 1 through 27. The rally is the first in five months

since last September for the capital region (In-chon and Kyong-gi) excluding Seoul, and the first

in four months for Seoul and the whole nation.

The increase was significant for the Kangnam district in Seoul: Kangdong-gu, 4.52 percent; Songpa-gu, 3.15 percent; Kangnam-gu, 3.05 percent; and Seocho-gu, 1.12 percent. Strong recovery was seen in the capital regions other than Seoul: Bu-chun, 3.27 percent; Kwha-chun, 2.7 percent; and Kwang-mung, 1.15 percent.

The distribution selling price for complex residencies also started its first recovery in four months since the announcement of the “10.29 counter plan.” Every ‘gu’ in Seoul gained from the recovery movement: Kangnam-gu (3.8 percent), Yongsan-gu (2.5 percent), and Yangchun-gu (1.23 percent).

Cheol-Yong Lee lcy@donga.com