Bundang apartment prices surge 29.5% in a year as reconstruction hopes and new builds cross W2b mark

Apartment prices in Bundang-gu, Seongnam, Gyeonggi Province — once celebrated as the premier residential district in the greater Seoul area — are climbing sharply again. Older complexes are posting transaction prices hundreds of millions of won higher than a year ago on reconstruction expectations, while newer developments in the Pangyo area are setting record highs.

According to Newsis and the Ministry of Land, Infrastructure and Transport's actual transaction price system, an 84-square-meter unit at Mujigae 2 Danji LG in Gumi-dong, Bundang-gu, sold last month for 1.53 billion won ($1.15 million) on the 10th floor.

That marks a 420 million won increase from September last year, when the same floor area traded at 1.11 billion won on the fourth floor.

An 84-square-meter unit at Hyojachon Hyundai in Seokhyeon-dong changed hands in February for 1.8 billion won on the eighth floor, then sold again last month for 1.95 billion won — a jump of more than 150 million won in just six months.

Bundang is a first-generation new town built in the 1990s, and many of its complexes have passed the 30-year mark since move-in. As the government's aging planned-city redevelopment program gains momentum, analysts say expectations for improved living conditions through reconstruction and higher floor-area ratios are feeding into prices.

Beyond reconstruction, some areas are also pursuing remodeling projects, and interest in redevelopment has spread across Bundang as a whole.

The broader rally that began in Seoul and spread to key residential areas of Gyeonggi Province has also fueled Bundang's rise.

As prices in major Seoul neighborhoods have climbed rapidly, buyers have shifted their attention to Bundang, which offers relatively lower price points while still providing easy access to Gangnam, strong school districts and well-developed lifestyle infrastructure.

The recent price gains are not confined to older apartments slated for reconstruction. Comparatively newer complexes in the Pangyo area have also recorded price increases of hundreds of millions of won this year.

An 84-square-meter unit at The Sharp Pangyo Forest 12 Danji in Daejang-dong sold in July for 1.45 billion won on the 15th floor, up 250 million won from 1.2 billion won on the third floor in January — a gain of roughly half a year.

Also in Daejang-dong, an 84-square-meter unit at Pangyo Punggyeongchae Urbanity 5 Danji sold last month for 1.55 billion won, which is 147 million won above the 1.4 billion won paid for the same floor in January.

At The Sharp Pangyo First Park in Baekhyeon-dong, an 84-square-meter unit on the ninth floor sold last month for 2.05 billion won ($1.53 million), crossing the 2 billion won threshold. That is 170 million won above the 1.88 billion won paid for a 13th-floor unit in January.

Bundang's price surge stands out even on a national scale.

Real estate platform Zigbang analyzed apartment market prices nationwide from September last year through August this year and found that Bundang-gu posted the highest gain of any city, county or district in the country, rising 29.5% over the 12-month period. That compares with a 10.6% increase in the preceding year, representing a sharp acceleration.

Bundang was followed by Gwangmyeong in Gyeonggi Province at 28.4%, Dongjak-gu in Seoul at 25.3% and Suji-gu in Yongin, Gyeonggi Province at 24.8%, underscoring the strength of key metropolitan-area markets with good access to Seoul. Analysts say the rally, which began in Seoul's Gangnam corridor, is now spreading beyond Gangnam to non-Gangnam districts and key Gyeonggi areas.

"Bundang has traditionally been one of the most sought-after areas among the first-generation new towns," said Yoon Ji-hae, head of the research lab at Real Estate R114. "Demand that has spilled over from Seoul is now focusing on Bundang."

"The key trend is that the price rally that started in Seoul has spread to core areas of Gyeonggi Province," Yoon added. "When prices rise on the outskirts of Seoul, housing prices in key Gyeonggi areas tend to follow."

Bundang's reconstruction fever is expected to remain a major variable in housing prices for now. When Seongnam solicited preliminary applications this year for the designation of special redevelopment zones under its aging planned-city program — with a target of 12,000 households — 50 zones comprising 66,037 households applied, roughly 5.5 times the planned capacity. Whether reconstruction expectations translate into actual project progress, the financial burden on buyers after a rapid price surge, and potential policy changes related to lending and redevelopment are all factors that will shape the direction of Bundang's housing market going forward.