No News of Reconstruction... Heated Up Oksu-dong

In the Oksu-dong area of Seongdong-gu, Seoul, established apartments are setting new record prices daily without any news of reconstruction promotion. Since the re-designation of the land transaction permission zone, demand has been concentrated in the nearby area, and even apartments completed in the 1980s and 90s are being traded at record prices regardless of their size.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price on the 27th, the exclusive area of 84㎡ of 'Oksu Heights', completed in 1998, was brokered for 2.5 billion won on the 1st of this month. This is 400 million won higher than the sale price of 2.1 billion won in March, just two months ago, and is the highest price for that size. On the 30th of last month, the exclusive 114㎡ was traded at 3.17 billion won, rising 320 million won in one month compared to the previous highest price of 2.85 billion won. Despite being a complex with about two years left until the 30-year reconstruction requirement, transactions continue to rise steadily even without reconstruction benefits occurring.

A nearby real estate agent said, "The 2.5 billion won highest-priced property was not even publicly registered, and it seems that a buyer who had been waiting for a view of the Han River immediately proceeded with the transaction."

The 'Oksu Geukdong', completed in 1986 with a scale of 900 households, is also riding the price increase trend. On the 6th of last month, the exclusive 68㎡ was traded at 1.47 billion won, 110 million won higher than the March transaction price of 1.36 billion won. The exclusive 142㎡ was also sold for 1.999 billion won on the 1st of this month, rising more than 90 million won from 1.9 billion won in February.

This complex has met the reconstruction period but is promoting the project through remodeling due to a high floor area ratio of 219%, and is currently undergoing architectural review.

The nearby 'Oksu Samsung' exclusive 59㎡ was also traded at 1.54 billion won on the 1st of last month, 80 million won higher than the highest price of 1.46 billion won recorded in the previous month. A nearby brokerage office said, "This complex particularly has no listings for the exclusive 84㎡."

Oksu Samsung is an old apartment complex completed in 1999 but has good access to school districts with a scale of 1,444 households. Although the reconstruction period has arrived, no maintenance project plan has been set, and with a floor area ratio of 263%, it is difficult to see high business feasibility when promoting reconstruction in the future.

The actual transaction volume in the area is also quite high. According to Asil, the apartment sales transaction volume in Seongdong-gu, where Oksu-dong is located, has already exceeded about 60% of last year's annual transaction volume (2,970 cases) with 1,731 cases this year (as of May 26). Considering that the overall apartment transactions in Seoul during the same period were only 47% compared to the previous year, transactions are relatively active.

On the other hand, listings are decreasing. As of the 26th, the total number of apartment sales listings in Oksu-dong is 301, a decrease of 20.2% compared to three months ago (377 cases).

An industry official explained, "As it can enjoy the location adjacent to Gangnam Apgujeong and Yongsan Hannam-dong, which are tied to the land transaction permission system, demand is concentrated in Oksu-dong, where transactions are free without any particular benefits," adding, "Prices are steadily rising, so there are many inquiries from not only end-users but also investors, but there are no listings."


going@fnnews.com Choi Ga-young Reporter