"So many newlyweds are coming"...The area that ranked first in transactions despite the capital gains tax surcharge

\r\n[Financial News]At a large apartment complex in Nowon District, Seoul, on the 29th, lift trucks used for moving were seen around each building. Around the complex, people who appeared to be touring homes were looking at apartments from one place to another. Young buyers made up a particularly large share, drawing attention. A local real estate agent near the complex said, "Although the capital gains tax surcharge exemption for multi-homeowners ended on May 9, there are still many people coming to look at homes," adding that "most are newlyweds with around 300 million won in cash."Demand for apartment purchases is concentrating in Nowon District, where relatively affordable and smaller units are clustered. As of the 30th, it ranked first in apartment transactions in May among Seoul's 25 districts, and actual transaction prices are also trending upward as end-user demand increases. Analysts say more people are viewing the area as a positive bet, helped by redevelopment expectations and station-area development projects.
■Nowon District tops transactions, with record prices jumping fourfoldAccording to the real estate industry on the 31st, apartment transactions in Nowon District in May stood at 450 as of the 30th, the highest among Seoul districts. Excluding Nowon District, the only district with more than 400 transactions was Guro District, with 412. No district recorded more than 300 transactions. Songpa District ranked third with 277.
As interest has risen, record-high prices have increased sharply. From January to May this year, Nowon District logged 212 apartment deals at record-high prices, about four times the 51 cases recorded in the same period last year.
Most of the complexes visited that day are also seeing higher actual transaction prices. In the case of Sanggye Jugong Apartment Complex 9, a representative large complex in Nowon District with 2,830 households, a 58-square-meter unit sold for 647 million won on the 7th of this month. That is more than 100 million won higher than the 500 million won price recorded on December 15 last year, meaning the price jumped by more than 100 million won in just five months. A nearby broker explained, "It is not easy for small units to rise this much," adding that "current asking prices are above 700 million won."
■Relatively low prices and redevelopment hopes are a bonusThe biggest reason interest in Nowon District has recently increased is redevelopment expectations. Earlier, on the 28th, the designation of a redevelopment zone and the decision on the redevelopment plan for Taereung Woosung Apartment in Gongneung-dong were officially announced. A real estate agent said, "Outside of Nowon, there are practically no places in Seoul where redevelopment can realistically be discussed," adding that "Sanggye Jugong Apartment Complex 6 has already exceeded the legal consent threshold of 65% needed to establish a redevelopment association." Under current law, the resident consent rate required to form a redevelopment association is 70%.
Relatively low prices and good access to Gangnam are also seen as attractive factors. According to the Seoul Real Estate Information Plaza, the average apartment transaction price in Nowon District in May was 648.83 million won. That is about 58% of the citywide average of 1.11081 billion won for the same period. Another broker said, "If you take Seoul Subway Line 7, you can get from Nowon to Gangnam in about 30 minutes," adding that "for lower-floor units or homes that need repairs, bargain listings often appear, and they sell quickly."
Interest in Nowon District is expected to grow even further when the Kwangwoon University Station Area Development Project is completed in 2028. The project is a large-scale mixed-use development worth about 4.5 trillion won.
kjh0109@fnnews.com Reporter Kwon Jun-ho Reporter