Work-Home Proximity Complexes Hit Record Highs Day After Day... Gangseo, Home to Magok, Tops Seoul in Price Gains

As Seoul home prices continue to rise, Gangseo District has emerged as the area with the sharpest gains among the city's districts this year. As lending restrictions push demand toward lower-priced complexes, record-high transactions and a shortage of rental listings around the Magok area are making the uptrend stand out even more.
According to KB Real Estate on the 28th, home prices in Gangseo District rose 6.64% this year, the steepest increase among Seoul's districts. Compared with Seoul's overall 3.82% rise in home prices this year, Gangseo's gain was about 1.7 times higher.
Gangseo District has been on an upward trend since the October 15 Real Estate Policy last year, as the market shifted toward mid- to lower-priced complexes. With the government limiting mortgage loans to 400 million won for apartments priced above 1.5 billion won and up to 2.5 billion won, and to 200 million won for apartments above 2.5 billion won, demand has concentrated on complexes priced at 1.5 billion won or less, where loans of up to 600 million won are available.
As demand surged, home prices rose as well. This month, the average apartment sale price in Gangseo District reached 45.1 million won per 3.3 square meters, up 2.04% from the previous month’s 44.2 million won, the strongest increase in Seoul.
In addition, companies have begun moving into Magok, which has emerged since the second half of last year as the largest business district in Seoul's southwest, driving demand for homes near workplaces and boosting prices in Gangseo District. More than 200 companies, including LG Sciencepark, Lotte Group and KOLON Group, have moved into the Magok area in Magok and Gayang-dong.
Major complexes in Magok-dong are also posting record highs one after another. According to the Ministry of Land, Infrastructure and Transport's Real Estate Transaction Price Disclosure System, a 59-square-meter unit at Magok M-Valley 15 Complex changed hands on the 1st for 1.5 billion won. That was 120 million won higher than the previous transaction of 1.38 billion won. In March, a 59-square-meter unit at Magok 13 Complex Hillstate Master sold for 1.63 billion won, while an 84-square-meter unit fetched 1.71 billion won, setting record highs across all unit sizes.
A shortage of jeonse listings is also pushing up rental prices and, in turn, sale prices. According to Asil, jeonse listings in Gangseo District fell 47.1% to 228 as of today from 431 on Jan. 1, a drop of 203 units. At Magok 13 Complex Hillstate Master, only three jeonse listings remain for 1,194 households.
A real estate agent in Magok-dong said, "With Seoul Subway Lines 5 and 9 nearby, commuting to Yeouido or Gangnam District is easy, so many newlyweds are looking here," adding, "Prices have risen a lot, but demand remains steady because large companies are moving in."
Another broker in Magok-dong said, "There are additional development prospects, including 'Magok The Grid,' which will be built on the CJ site in Gayang-dong near the Magok area," and added, "We expect asking prices to rise further once construction begins."
act@fnnews.com Choi A-young Reporter