The housing price surge has spread even to standalone apartment complexes, with prices jumping by as much as 300 million won in a year

#. A salaried worker identified as A, who had recently been considering buying a large apartment complex in Mapo District, gave up the plan after sharp price increases and turned his attention to a nearby smaller complex. A brokerage office recommended a standalone apartment near a station, saying, "Recently, even smaller complexes have risen a lot in price."
As apartment prices in Seoul continue to rise, prices are also climbing for so-called standalone apartments, which had previously been relatively less preferred. The surge in prices has been led by apartments in the Gangnam area, along the Hangang River, and in large station-area complexes, prompting end-users looking for homes within their budget to shift their attention.
■ Standalone apartments post a series of record highs
According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 14th, standalone apartments near stations in major parts of Seoul have recently set new record highs one after another. As prices of large apartment complexes have surged in a short period, demand is spreading to smaller complexes with relatively lower price burdens.
The standalone apartment A had been considering buying is Mapo Dongwon Benest, a 167-unit complex near Gongdeok Station, where four rail lines intersect. A 58-square-meter unit in the complex sold in May for 1.45 billion won, up 300 million won from a year earlier. The rise was influenced by nearby price gains after a similar-sized unit in Dowon Samsung Raemian Apartment Complex, a 1,458-unit development nearby, sold for 1.7 billion won in February.
A similar trend is appearing in Yeongdeungpo District. A 82-square-meter unit in Samik Apartment, located in the double-station area near Yeongdeungpo-gu Office Station on Subway Lines 2 and 5, sold for 1.3 billion won in April, setting a new record high. That is 360 million won higher than a year earlier. The increase stands in contrast to the roughly 100 million won gain seen over the previous three years from 2021 through last year.
The market is also showing signs of a supply freeze. A 84-square-meter unit in Ttukseom Hyundai Apartment Complex, located one minute on foot from Ttukseom Station on Line 2, sold for 1.65 billion won in May. Compared with transactions around 1.2 billion won last year, the price has risen by more than 400 million won in just one year, and there are currently no listings.
In the case of Geumho 2-cha Apartment Complex near Seongsu Station, one lower-floor listing for a 59-square-meter unit recently came onto the market at 2 billion won. The complex had set a record high of 1.3 billion won in January, after which listings almost disappeared. There is only one property currently listed.
■ "A typical spillover process in a rising market"
Industry watchers see the recent strength in standalone apartments as a typical spillover process in a rising market. In general, during periods of housing price increases, newly built apartments and large complexes with strong locations tend to rise first, followed later by mid-sized complexes, older buildings, and standalone apartments.
Standalone apartments usually refer to small complexes with fewer than 300 households. They have not been highly preferred because of a lack of community facilities, relatively lower liquidity, and weaker management conditions than large complexes. But recently, they have been undergoing a reassessment, especially those with station-area locations.
Nam Hyuk-woo of the Woori Bank Real Estate Research Institute said, "As the rising market continues, the products that buyers seek keep changing. When apartment prices in the surrounding area rise sharply, standalone apartments with relatively lower prices can look cheap due to the anchoring effect." He added, "There is a time lag, but in a rising market, most types of housing eventually join the upward trend."
He also advised that it remains to be seen whether the price gains in standalone apartments will continue in the long term. "Complexes with strong location competitiveness, such as those in residential belts or near stations, may continue to rise. But non-station-area complexes or those with weaker product appeal may see price volatility depending on market conditions," he said.
going@fnnews.com Choi Ga-young Reporter