[Edaily Reporter Jeong Yun-ji ] While high-end apartments in the Gangnam area have entered a correction phase due to the government’s loan regulations and tax reforms, housing prices in Daechi-dong and Mok-dong—Seoul’s premier school districts—are showing relatively steady trends. This is because strong demand from parents seeking quality education for their children is supporting prices. With relocation demand from redevelopment projects expected in various areas, forecasts suggest that apartment prices in school district hubs will continue to rise steadily.

According to the Korea Real Estate Board on the 20th, the weekly apartment sales price index for Gangnam District for the second week of September (as of the 14th) fell 0.36% compared to the previous week, marking the sixth consecutive week of decline. Year-to-date, the increase has been limited to 0.72%. Compared to the rise during the same period last year (10.38%), the upward trend has significantly slowed.

Despite the overall market correction in Gangnam District, Daechi-dong—a prime school district—continues to see transactions in the range of several billion won. According to the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system, a 97-square-meter unit in Daechi Samsung, located near the Daechi-dong cram school district, rose from 2.65 billion won in September of last year to 3.6 billion won in July of this year—an increase of 950 million won in about 10 months.

The same is true for a 93-square-meter unit at Raemian Daechi Palace. Its price rose from 4.5 billion won in March of last year to 4.7 billion won in July of this year. Despite price adjustments across high-end apartments in the Gangnam area, transactions in Daechi-dong continue to be concluded at high prices in the range of several billion won.

And it’s not just Gangnam. With apartment prices in Yangcheon-gu having risen 6.47% year-to-date, transactions at higher price points are continuing in Mok-dong—a prime school district—particularly in major complexes. A 54-square-meter unit in Mokdong New Town 8 rose from 1.695 billion won last year to 1.8 billion won this year, while a 95-square-meter unit in Mokdong New Town 6 climbed from around 2.9 billion won last October to 3.1 billion won this July. In less than a year, transaction prices for both complexes have risen by around 7 percent. Ssangmun-dong in Dobong-gu, where the so-called “Seondeok school district” has recently formed around Seondeok High School, is also driving price increases, with apartment prices rising by up to about 20% over the past year.

This is attributed to strong demand from families seeking quality education for their children. Since Daechi-dong and Mok-dong are home to dense clusters of large private academies, even if buying demand in the broader housing market weakens, the demand driven by the need for proximity to schools and academies is unlikely to decline significantly in the short term.

In Daechi-dong and Mok-dong, if relocation demand from redevelopment projects is added to the mix, the concentration of buyers in complexes near cram school districts could become even more pronounced. In Daechi-dong, the Eunma Apartment complex—a large-scale development comprising 4,424 households—is set to undergo a major relocation in the first half of next year. In Mok-dong as well, relocation is expected to continue as redevelopment projects gain momentum. If existing residents, seeking to maintain their school district for their children’s education, move to nearby complexes in the cram school districts, this could put pressure on demand not only in the sales market but also in the monthly rent and lease markets.

In fact, a shortage of listings is already evident in the jeonse and monthly rent markets. According to the real estate big data platform Asil, as of the 15th, there were 36,661 jeonse and monthly rent listings for apartments in Seoul, a 14.0% decrease from a year ago. In particular, Daechi-dong, where Eunma Apartments is located, saw a sharp 43.2% drop during the same period, from 1,096 listings to 622. In Gangnam District as well, the cumulative year-to-date increase in jeonse prices stands at 2.62%, surpassing the rise in sales prices (1.43%); analysts suggest that as the relocation period approaches, the shortage of jeonse listings and upward pressure on prices could intensify further.

If jeonse prices spike sharply, there is also a possibility that demand will shift toward purchasing properties outright. A licensed real estate agent in Daechi-dong explained, “Since jeonse prices are so high and there are no units available, we’re even getting inquiries from parents who are considering buying a home outright—even if it means downsizing,” adding, “They seem to judge that buying outright is better, especially when their children are young.”

The real estate industry predicts that this trend will further solidify the concentration of demand in complexes near private tutoring districts. Another licensed real estate agent in Daechi-dong noted, “Just because the entire Gangnam area is undergoing a market correction doesn’t mean that demand from parents seeking properties in Daechi-dong will decrease as well,” adding, “Even if prices rise slightly, people will still seek out complexes near private tutoring districts, and once the Eumma relocation begins, prices are expected to rise even further.”