Gangnam real estate keeps getting expensive

Prices of redeveloped apartments in the upscale neighborhoods of southern Seoul have jumped nearly 30 percent in the past two years, according to new data from local real estate information provider Budongsan 114.

The average price of redeveloped apartments in three of the most expensive districts in southern Seoul - Seocho, Gangnam and Songpa - rose from 1.04 billion won ($894,000) at the end of 2014 to 1.39 billion won last year, an increase of 32.8 percent, Budongsan 114 said Tuesday.

The average price of a redeveloped apartment in Gangnam District rose the most - by 329 million won from 1.15 billion won in 2014 to 1.48 billion won last year.

In Seocho District, the average price rose by 328 million won from 1.12 billion won to 1.45 billion won. The average price in Songpa District rose 300 million won from 788 million won to 1.09 billion won.

During the same period, the average price of all apartment units in the three districts, including redeveloped and new ones, rose nearly 100 million won.

The average price in Gangnam District went from 1.01 billion won to 1.23 billion won; the figure for Seocho District rose from 1.02 billion won to 1.23 billion won; and Songpa District saw apartment prices go up from 705 million won in 2014 to 865 million won last year.

Outside the three southern Seoul districts, Yangcheon District in southwestern Seoul saw apartment prices go up the most.

According to Budongsan 114, the average apartment price in Yangcheon District rose from 560 million won in 2014 to 667 million won last year. Apartments in Yongsan District and Gangdong District also saw prices rise rapidly.

Apartment prices in Dobong District (northern Seoul), Jongno District (central Seoul) and Jungnang District (northern Seoul) saw more modest increases.

Seoul apartment prices in general rose 15.6 percent from 534 million won to 617 million won.

“Apartment prices in Seoul fell after the global financial crisis in 2008 but started to recover in 2014,” said a representative at Budongsan 114. “However, we expect that prices will not go up as fast as they did in the past few years due to growing uncertainties from the interest rate hike in the United States that is affecting the mortgage rate in the country and the Korean government’s decision to toughen regulations on the real estate market.”

BY KIM YOUNG-NAM [kim.youngnam@joongang.co.kr]