Apartment prices in the Mokdong Sinsigage area are being revalued as reconstruction projects there accelerate. Record-high transactions have been occurring across major complexes, with analysts saying expectations about post-reconstruction market prices are already being reflected in current deals.
According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, a 101-square-meter unit in Mokdong Sinsigage Complex 7 sold last year for 3.65 billion won (about $2.39 million), pushing the price per 3.3 square meters of supply area above 100 million won.
An 83-square-meter unit in Complex 1 changed hands at 2.61 billion won in late last year — more than 200 million won above the 2.4 billion won paid for the same unit type in August last year, a gain of over 200 million won in just four months. A 144-square-meter unit in Complex 2 sold for 3.88 billion won in April, up roughly 900 million won from 2.98 billion won recorded in February last year — an increase of about 900 million won in roughly a year. In February, a 98-square-meter unit in Complex 1 set a new record at 2.98 billion won, up 720 million won from the previous month.
Industry watchers are drawing comparisons to the Gaepodong reconstruction experience. According to data from Real Estate R114, apartment prices in Gaepodong rose 143.26 percent from 2016, when reconstruction there began in earnest, through 2021, when the first completed complexes welcomed residents — outpacing the average gain of 122.4 percent for Gangnam-gu over the same period.
An analysis of Ministry of Land, Infrastructure and Transport transaction data by Real Estate Info found that Gaepo Jugong Complex 3 rose from 74.46 million won per 3.3 square meters in 2016, before reconstruction, to 96.6 million won in 2019 after being rebuilt as "DIH Honor Hills." Gaepo Siyeong Apartment similarly climbed from 89.49 million won per 3.3 square meters in 2018 to 105.64 million won in 2020 following its redevelopment as "Gaepo Raemian Forest."
"Mokdong is the residential hub of southwestern Seoul, with strong school districts, lifestyle infrastructure and transport access," an industry official said. "If large-scale reconstruction proceeds, a similar price revaluation to what happened in Gaepodong could follow."
Amid this trend, GS Construction plans to launch pre-sales for "Mokdong Yunseul Xi" on the former KT Corp site in Mokdong, Yangcheon-gu, Seoul. The development will rise from six below-ground floors to 48 above-ground floors across three buildings, comprising 651 officetel units with exclusive use areas of 114 to 203 square meters, along with neighborhood commercial and office facilities. The complex sits near Omokgyo Station on subway Line 5 and has easy access to major arterial roads including National Assembly-daero, the Seobu Arterial Expressway and the Olympic Expressway. Nearby amenities include Mokwun Elementary School, Mokwun Middle School, Yangjeong High School, Jinmyeong Girls' High School, the Mokdong hagwon district, Hyundai Department Store and Ewha Womans University Mokdong Hospital.
kim3956@heraldcorp.com
