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Gangnam Apartment Price Soars by 100 Million in 15 Days

Posted June. 04, 2005 06:27,   


The price for a 40-pyong or larger apartment in Gangnam-gu is on the rise again.

The increase started after the government announced a regulation on May 19 that reconstruction apartments must use more than 50 percent of its total area for a 25.7-pyong or smaller apartment.

As a result, more and more people came to think that the lower number of large apartments would lead to a price increase of large apartments, which eventually boosted the increase in apartment price.

According to Kookmin Bank on June 3, the price of a 55-pyong, Sunkyung apartment in Daechi-dong, Gangnam-gu has increased by more than 100 million won in the last 15 days and now its asking price for trade is at 1.9 billion won. In other words, its price per pyeong is around 34.54 million won.

The price for a 49-pyong unit at “Family Apartments” in Munjeong-dong, Songpa-gu recorded a steep increase of over 70 million won in the last 15 days. This apartment once showed a price decrease in May.

As the sale of large apartments becomes scarcer, asking prices are on a steep rise. The price for a 61-pyong, Sinhyundai apartment in Apgujeong-dong, Gangnam-gu was traded at around 1.9 billion won in the middle of May. These days, however, its asking price is recorded at 2.2 billion won. In other words, its price per pyeong is around 36 million won.

The asking price for a 57-pyong at Olympic apartments in Oryun-dong, Songpa-gu has increased by 100 million won in the last month.

Jeon Yeong-ju, the director of “Real-estate Depot,” a real estate broker, said that since the asking price of large apartments is too high and offerings are very few, the number of actual trades is low.

The price for reconstruction apartments that are to be enlarged follows the current trend. Oh Jae-yeong, the director of a real estate company, “Fortune Real Estate,” in Gaepo-dong, Gangnam-gu, said that the price increase of a 17-pyong unit at Gaepo Jugong Apartments 1 is much larger than that of a 13 or 15-pyong unit, because the 17-pyong unit will be enlarged to a 40-pyong or larger, while the 13 or 15-pyong unit will be extended to a small or medium-sized apartment.