Seoul's Jangwi New Town apartments surpass 1.6 billion won, fueling gap‑investment surge

In Seoul’s Jangwi New Town, the price of a standard 84 ㎡ (≈ 904 sq ft) apartment has jumped to more than 1.6 billion won (≈ US$1.2 million), breaking the “national‑average” ceiling for the first time. Recent transactions include a 16.5 billion won sale in zone 4 on May 27 and a 16.2 billion won deal in zone 7 in June, each representing a rise of roughly 2‑4 billion won within a year. Similar jumps are seen in zones 6 and 10, where prices have climbed from about 1.2 billion won a year ago to 1.55‑1.7 billion won today.

The rapid price increase has spurred a wave of “gap‑investment” activity. Private‑development zones (e.g., zones 8, 9, 14, 15) do not require occupants to live in the units, allowing investors to purchase villas or small multi‑family houses with initial outlays of 300‑600 million won and aim for resale profits as prices approach 2 billion won in three to four years. Agents cite a premium of 400‑500 million won on new units and note that small‑scale investors are now targeting 3‑room villas with similar returns.

Public‑redevelopment zones led by Seoul Housing & Urban Corp (SH) and Korea Land & Housing Corp (LH) continue alongside private projects, with zone 6 slated to complete sales in 2024 and zone 10 already under construction. The combined effect is reshaping the market expectations for Seoul’s largest flat‑top new‑town project.