Noryangjin Redevelopment Premiums Jump as New-Home Prices Hit $25 Million Won Level

"With Noryangjin Zone 6 (Ra Clarte Zide Fine) posting a 2.5 billion won presale price for a standard-sized unit, expectations are rising for Zone 1 as well. Most Zone 1 listings were gone by last week, and inquiries keep coming in from buyers trying to secure the few units that can still be transferred," said the head of a real estate office in Noryangjin-dong.
 
Banners hung across Seoul’s Noryangjin New Town redevelopment area on April 22 after Noryangjin Zone 1 received approval of its management and disposition plan from Dongjak-gu on April 21. Zone 3 received the same approval in February. Large contractor banners promoting high-end brands were also visible, and brokerage windows were covered with flyers advertising imminent approvals and low initial cash requirements.
 
Momentum has been building as projects move through permits and approvals, following strong demand for Zone 6’s general presales despite a price of 76 million won per 3.3 square meters.
 
 
Zone 1 has been among the slower-moving projects in the New Town. Although it was designated a redevelopment promotion district in 2003, it faced setbacks and only secured the management and disposition approval this year. Local industry officials said listings in Zone 1 were quickly snapped up through mid-April even with premiums in the mid-1 billion won range.
 
According to the Transport Ministry’s public real estate transaction system, a detached home on 172 square meters of land in Zone 1 sold for 3.29 billion won on April 7. A small villa on 27.91 square meters of land changed hands for 1.95 billion won on April 8. On April 17, a multi-family home with 72.59 square meters of floor area and a 49-square-meter land share sold for 2.2 billion won.
 
In Zone 3, which received approval earlier this year, a 23.5-square-meter villa sold for 1.8 billion won on Feb. 19, just ahead of the Feb. 26 public notice date. A broker at a Zone 1 office said villa appraisals are typically 300 million to 400 million won, but many deals added premiums of at least 1.5 billion won.
 
Brokers said the approval blocks transfers of cooperative membership status, but premiums on the limited number of transferable units in Zones 1 and 3 are still expected to rise by at least several hundred million won. A broker near Zone 3 said Zone 6’s sales helped cement the idea that “new Noryangjin apartments cost 2.5 billion won,” and predicted transferable units would trade at prices several hundred million won above the existing 1.5 billion won premium. The broker added that transferable villas in approved Zone 3 have risen by about 100 million to 200 million won over the past two months.
 
 
Zone 6’s presale price for an 84-square-meter unit reached as high as 2.5532 billion won. The cooperative-member price for the same size is 671 million won, a gap of more than 1.8 billion won. Cooperative-member prices for 84-square-meter units in Zones 1 and 3 are said to be around 1.08 billion won and 1.03 billion won, respectively, implying a roughly 1.5 billion won “safety margin” versus general presale prices. A broker said buyers can still calculate that paying a 1.5 billion won premium secures move-in rights below general presale prices, and that asking prices for those rights tend to rise as presale prices climb.
 

Brokers also pointed to last-minute competition for properties eligible for “1+1 move-in rights,” which allow two cooperative-member allotments when a property’s appraisal exceeds a set threshold. A flyer seen at a brokerage listed a Zone 1 “1+1” package for 84 and 59 square meters with an initial cash requirement of 2.1 billion won on a 3.2 billion won purchase price. Brokers said the structure can amplify gains because price appreciation could apply to both units once market prices form after move-in.
 
A representative at a brokerage near Noryangjin Station said about half of Zone 1 cooperative members applied for “1+1” units, reflecting demand from retired, cash-rich buyers who plan to live in one smaller unit and rent out the other as an income-producing asset. The representative added that recent transactions have been active, led by middle-aged buyers with substantial cash holdings.