Gangnam Price Decline Ends, Sadang-dong Emerges as the New Bangbae-dong

This reflects resentment toward the remark, which interpreted price rises in outer districts such as Nowon, Dobong, and Gangbuk as part of a 'leveling' process. Combined with fears of a jeonse and monthly-rent surge, it has served as a backdrop for the spread of 'survival buying.'

Amid this mood, Seoul home prices have kept rising for 85 straight weeks, surpassing the longest streak on record under the Moon Jae-in administration.

This coincided with sales by retirees seeking to use the holding-tax burden and long-term holding special deduction benefits, but it was quickly absorbed by a solid base of demand.

Jeonse and monthly rents are expected to rise 5–10% or more, which also supports sale prices.

Gangnam's declines are only 1.3%, 0.97%, and 0.14% compared with last year's surge. With new record highs appearing again recently, the Gangnam downturn appears to have stopped.

The sense of deprivation and FOMO from apartment price increases is pushing demand toward the redevelopment villa market.

Seoul's housing supply is expected to fall short until 2031, so redevelopment has no choice but to be activated or designated more often than reconstruction.

The government and the Seoul Metropolitan Government are pushing to expand supply through transit-area development, Moa Town, and the Rapid Integrated Planning program. In areas where new apartments sell for 2–3 billion won, premiums of 700 million to 1.5 billion won have formed, and the rise in Seoul villa prices has hit an 18-year high.

Not all 25 districts in Seoul are seeing active redevelopment, so an eye for selecting areas with secured project feasibility is required.

Areas where apartment prices are at least in the 2–3 billion won range have good project feasibility, while areas where new apartments are priced at 1.5 billion won or below may be designated as redevelopment zones and then released or stall, causing investors to lose money.

If the area near Isu Station is developed, a large complex of about 14,000 households is expected to take shape. Sadang-dong, located between the residential towns of Banpo, Bangbae, and Heukseok New Town, shares high apartment prices in key areas, access to the three city centers, and development tailwinds.

If the area near Isu Station is developed, it is expected to be reborn as a large residential town of about 14,000 households.

The high apartment prices in this area are influenced by access to the three city centers and development tailwinds, and project progress is actively advancing for development zones 1 through 7 near Isu Station.

Kim Hak-ju, the CEO, pointed to an area in Sadang-dong adjacent to Gyeongmun High School and elementary and middle schools as a place where a big-payoff purchase is possible.

This area already has lot numbering and consent procedures underway and is expected to be 100% developed. It has the location advantage of double station access on Lines 7 and 4.

It has the potential to form value similar to or higher than Heukseok New Town, and if invested in with a jeonse deposit at the late-200-million-won level, a premium of 1.0–1.5 billion won can be expected in the future.

For general redevelopment zones such as Noryangjin, Heukseok, Seongsu, and Hannam, location with good access to Gangnam is the key to project success, as much as the floor-area ratio.

Whatever the development method, locational value ultimately determines the premium, and redevelopment in major Seoul areas forms premiums of 700 million to 1.5 billion won.

We judged that the present, with these government policy incentives, is the right time to seek asset growth opportunities through non-apartment redevelopment properties.