“The bargain hunt has been exhausted, and now that the prices are rising, landlords who have been watching are raising their prices and selling.”

This is what an official at a real estate agency in the ‘Godok Grassium’ shopping center in Godok-dong, Gangdong-gu, Seoul, said when asked if there were any short sales left. “The few remaining short sales were sold out by the beginning of this month, so the price range is now a notch higher,” the official explained.

‘Godok Gracium (left)’ and ‘Godok Arteon’ in Godok-dong, Gangdong-gu, Seoul, on March 23 / Kim Song-i Reporter

Recently, Kodok-dong has been showing strong transaction volume not only in Gangdong-gu, but also in Seoul. Two of the top five complexes with the highest transaction volume from March to May, as compiled by ASIL, are located in Kodok, including Kodok Grassium and Kodok Ramian Hill State. According to the Ministry of Land, Infrastructure, and Transport’s real estate transaction disclosure system, 99 transactions were concluded in Godeok-dong, Gangdong-gu, in March and April.

As the demand for buying and selling increases, apartment prices are also rising. According to the Ministry of Land, Infrastructure, and Transport’s real transaction price disclosure system, a 59-square-meter apartment dedicated to Kodok Grassium was sold for between 1 billion won and 1.2 billion won this month. The current listing price is as low as 1.15 billion won. In January, the actual transaction price was between 970 million won and 1.06 billion won.

The situation is the same for ‘Godok Arteon’ across from Godok Gracium. An exclusive 84㎡ unit at Kodok Arteon, which sold for a low of 1.245 billion won in January, sold for a low of 1.293 billion won and a high of 1.43 billion won this month. Currently, the lowest asking price for an exclusive 84㎡ unit is 1.4 billion won.

New apartments in the Godeok-dong area were hit hard by the real estate downturn that began with the interest rate hike last year. The sale price of an exclusive 84-square-meter unit at Kodok Grassium fell to 1.225 billion won earlier this year. That’s a 38.8 percent plunge from the highest price of 2 billion won in October 2021. However, it has recently recovered to the 1.6 billion won range.

A representative from a nearby A real estate agency said, “Buyers who had been watching the market closely until the beginning of this year, when the low-priced properties were exhausted and the prices gradually increased, have been inquiring a lot,” adding, “We signed a few sales contracts last week, and one was successful yesterday. We have a team scheduled to view the property today as well.”

A view of the ‘Godok Gracium’ complex in Godok-dong, Gangdong-gu, Seoul, on Nov. 23 / Reporter Kim Song-i

Real estate agencies in the ‘Godok Gracium’ complex in Godok-dong메이저놀이터, Gangdong-gu, Seoul, on Nov. 23.

According to officials at nearby real estate agencies, the Kodok-dong area is gradually turning into a seller’s market. As transactions are gradually reviving and the number of buyers coming to view homes is increasing, landlords are not only watching the actual transactions, but are also setting prices beyond them. The stabilization of lending rates and the easing of regulations on lending have also had an impact.

“The days of borrowing money to sell are over,” said an official from Real Estate Agency B. “There are many people who live here, but there are also many landlords who live in nearby areas such as Songpa-gu and own properties for investment purposes. Most of these landlords can afford to buy, so the price support is strong.”

Along with the perception that prices have “bottomed out,” the recovery in Kodok-dong has been influenced by various upcoming projects in the neighborhood. To the north of the district, a commercial business complex, ‘Kodok Business Valley’, is being built. By next year, more than 150 companies, including commercial facilities such as IKEA in Kodok, Silla Trading, and KDN, are scheduled to move in, and more than 15,000 people are expected to work there.

The transportation network is also improving. By 2028, Seoul Subway Line 9 will be extended to Gangdong-gu’s Godeokgangil district, and once the extension is completed, residents of Godeok-dong will be able to reach Gangnam in less than 30 minutes. “We don’t know what the market will be like in the second half of the year, so we can’t say for sure, but we expect apartment prices in Kodok to recover,” said an official at a real estate agency.

“Newly built apartments in Kodok-dong were subject to a correction following a surge in the past bull market, but recently, demand for second-tier properties has been shifting,” said Park Hap-soo, a professor at Kookmin University’s Graduate School of Real Estate. “There is also a demand for newer apartments, but it is still too early to conclude that the preference for second-tier properties has become mainstream.”