The real estate market in Seoul's northern region is heating up, particularly in Nowon District. With the city’s policy allowing high-density development, areas like Nowon, Dobong, and Gangbuk are seeing record prices for large complexes. This trend is evident at key reconstruction sites such as Junggye Green and Hakee Rose Apartments.
According to the Korea Real Estate Agency, apartment prices in Nowon District have increased by 3.38% this year, outpacing the overall rise in Seoul, which stands at 2.65%. In the last week of April, the price increase in Nowon was 0.18%, higher than Gangbuk (0.14%) and Dobong (0.13%). Weekly increases from March to April ranged from 0.18% to 0.32%, placing Nowon among the top performers in Seoul. This contrasts sharply with the sluggish trends in Gangnam, where prices have dipped by 0.02%.
The surge in Nowon’s housing prices is largely attributed to the reconstruction expectations surrounding Junggye Green and Hakee Rose Apartments. Banners celebrating the formation of project committees were prominently displayed throughout both complexes. Both are located within a 30-second walk from Junggye and Hakee subway stations, making them highly desirable for buyers, especially families with children due to their proximity to elementary schools.
Junggye Green Apartments consist of 3,481 units across 25 buildings, and transactions have been consistently occurring. According to the real estate platform Asil, there were three sales and seven lease transactions last month, with a 59-square-meter unit selling for a record 720 million won in March, an increase of approximately 140 million won from 577 million won in July of the previous year.
Hakee Rose Apartments, comprising 1,880 units across 15 buildings, are also experiencing notable price increases. A 59-square-meter unit sold for 780 million won last month, marking a rise of about 175 million won from 650 million won in July of the previous year.
The rise in Nowon’s housing prices is also influenced by changes in Seoul’s urban renewal policies. The city is promoting a mixed-use redevelopment approach in transit-oriented areas, allowing for high-density developments of up to 60 stories. Hakee Rose Apartments are set for redevelopment into a 59-story building, while Junggye Green Apartments will be transformed into a 49-story complex with 4,360 units. Additionally, the use of public support systems is expected to expedite administrative processes, further enhancing project momentum.
A Seoul city official stated, “The city has applied the concept of high-density mixed-use development in the district unit plan revision for areas like Sangye, Junggye, and Hakee in Nowon. Some transit-oriented sites can now achieve a floor area ratio of up to 400% through zoning changes.”
However, the official noted that while Junggye Green Apartments are located in a transit-oriented area, the absence of surrounding semi-residential or commercial zones differentiates them from other sites eligible for high-density mixed-use development.
Seojin Hyung, a professor at Kwangwoon University’s Department of Real Estate Law, remarked, “Nowon District has historically struggled with low business viability due to high existing floor area ratios, making additional increases challenging. The recent relaxation of these ratios could serve as a catalyst for revitalizing reconstruction efforts.”
* This article has been translated by AI.
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