'Imun New Town hits W2b mark' as Imumdong apartment prices surge

The price of a standard 84-square-meter apartment in Seoul's Imun New Town has climbed to the 2 billion won mark — up from around 1.5 billion won ($1.1 million) just a year ago. As newly built large complexes that were pre-sold roughly three years ago begin welcoming residents, price expectations in the area have risen sharply.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, an 84-square-meter unit at Imunje IPark Xi in Imumdong, Dongdaemun-gu sold for 2.06 billion won on Aug. 18. It was only the third time an 84-square-meter unit in Dongdaemun-gu had traded above 2 billion won, following a March deal at Raemian Eliniti in Yongdu-dong at 2 billion won (18th floor) and a July transaction at Cheongnyangni Station Lotte Castle SKY-L65 at 2.14 billion won (43rd floor).

The latest deal stands out because it marks the first time a new large-scale complex in Imumdong itself — beyond the Cheongnyangni area — has crossed the 2 billion won threshold for the standard unit type. The same unit type at Imunje IPark Xi last traded at 1.5 billion won in September last year, on the 14th floor. Compared with that transaction, the price has risen 560 million won, or 37.3 percent, in a single year.

Imunje IPark Xi drew attention at its general pre-sale in October 2023 for its high pre-sale prices. The average pre-sale price at the time was about 35.5 million won per 3.3 square meters, with 84-square-meter units offered at up to 1.21 billion won to 1.44 billion won depending on the unit type. Compared with the current actual transaction price of 2.06 billion won, that represents a gap of about 620 million won above the highest pre-sale price — and more than 800 million won above units offered in the 1.2 billion won range.

Because its pre-sale prices were set higher than those of Raemian La Grande and Hwigung Xi Decencia, which launched pre-sales earlier that same year, the market at the time viewed the complex as expensive. Some 84-square-meter unit types failed to attract five times the number of applicants per available unit in the first-round subscription. Yet roughly three years after the pre-sale, actual transaction prices have far surpassed the 1.2 billion to 1.4 billion won range that was once considered steep, now settling in the 2 billion won range.

Nearby new complexes are following a similar trajectory. An 84-square-meter unit on the 13th floor of Raemian La Grande — built on the redeveloped Imun District 1 site — sold for 1.45 billion won in September last year. The same unit type is now listed at around 2 billion won, meaning asking prices have risen about 550 million won from the actual transaction price a year ago. At the time of its 2023 pre-sale, the highest pre-sale price for an 84-square-meter unit at Raemian La Grande was 1.1 billion won.

Hwigung Xi Decencia, developed through the redevelopment of Hwigung District 3, also saw its 84-square-meter unit trade at 1.37 billion won in September last year, but asking prices for the same unit type have since climbed to as high as 1.95 billion won — some 580 million won above last year's transaction price. The highest pre-sale price for an 84-square-meter unit at Hwigung Xi Decencia in 2023 was 976 million won, meaning current asking prices are approaching nearly double the original pre-sale price.

"All 84-square-meter units in Imun New Town's new complexes now start at 2 billion won in asking price," said the head of a real estate agency in Imumdong who asked to be identified only by the agency's initial. "However, transaction volume has dropped sharply given how much prices have risen."

Some end-users, deterred by the price increases, are shifting their attention to other neighborhoods or older apartment buildings. "A newlywed couple who had been considering a purchase a year ago came back recently, only to leave in dismay at how much prices had gone up," the agent said. "We are seeing demand divert away from Imun New Town new builds toward relatively cheaper older apartments elsewhere in Dongdaemun-gu."

Apartment prices across Dongdaemun-gu as a whole have posted double-digit gains this year. According to the Korea Real Estate Board's weekly apartment market report for the second week of September, apartment prices in Dongdaemun-gu have risen 10.59 percent so far this year — the seventh-highest increase among Seoul's 25 autonomous districts. The district trails Seongbuk-gu (14.01 percent), Seodaemun-gu (11.45 percent), Gangseo-gu (11.35 percent), Guro-gu (11.32 percent), Gwanak-gu (10.80 percent) and Nowon-gu (10.73 percent).

Analysts say the sharpest price gains this year among Seoul's outer districts have been concentrated in areas where large new complexes have been built.

"The areas that have seen the biggest price increases this year are on Seoul's outskirts, and among those, Seongbuk-gu and Dongdaemun-gu have risen the most, driven by new builds in Jangwi-dong and Imumdong," said Ham Young-jin, head of the real estate research lab at Woori Bank. "As new pre-sale prices along the Han River have approached nearly 80 million won per 3.3 square meters this year and jeonse prices have surged, end-user demand has flowed into new towns with relatively good living conditions, and that has fed through into prices."

Ham added that asking prices are high even as transaction volume remains low, and when a single deal goes through at those prices, it sets a new market benchmark. "That pattern looks likely to continue for now," he said.