"I sold Seodaemun-gu and moved to Daechi-dong..." Advice for those debating the timing of moving up

The most common problem faced by those considering a real estate move-up is the sense of loss when "the apartment they sold rises in value more than the one they bought." Recently, author Song Hee-gu mentioned a case through video content where someone sold an old apartment in Seodaemun-gu and moved to a new apartment in Daechi-dong, explaining the essence and judgment criteria of moving up.

Is a rise in house prices after selling a failure in moving up?

Author Song Hee-gu explained the consequential interpretation of moving up through the case of selling an old apartment in Seodaemun-gu and moving to a new one in Daechi-dong. In this case, while the Seodaemun-gu apartment rose by 500 million won after being sold, the price of the Daechi-dong apartment showed almost no change. This led to questions about whether the move-up was a mistake.

Song pointed out that such thoughts are only possible because one knows the past prices. At the time, it was impossible to know that the Seodaemun-gu apartment would rise by 500 million won over the following year, and one cannot rule out the possibility that the price of the target Daechi-dong apartment might have surged even more while waiting. He explained that real estate prices are interconnected, meaning a rise in a specific area can stimulate demand in other areas, or a trend exists where lower-tier areas follow once higher-tier areas rise first. Therefore, he emphasized that the purpose of moving up should not be simply to pick a house that rises more than the sold one, but to elevate the position of one's assets by one level.

3 criteria to check before deciding to move up

Song presented three check items for those debating whether to wait until the favorable news (hojae) for their current apartment is realized.

The first is "comparing the favorable news of the current home and the target home." Every area has favorable news, but one must distinguish how much that news can be reflected in the price. If the favorable news for the current home (e.g., opening of a subway line) is already sufficiently reflected in the market, there is no need to wait; conversely, if the favorable news for the target home (e.g., approval of a reconstruction project) is imminent, moving now may be advantageous.

The second is "checking the market price of the leading apartment in the area." One should not look only at the actual transaction price of their own apartment, but observe the movement of the leading apartment that forms the highest price in that residential area. This is because when the buying momentum of the leading apartment strengthens and its price ceiling rises, there is a high possibility that apartments in the levels below it will also have room for price increases. Conversely, if the leading apartment is stagnant, there may be limits to the price expansion of that area.

The third is "considering the psychological cost of waiting." The act of waiting for favorable news to be realized without a clear reason itself generates mental costs. The anxiety that higher-tier areas might rise first can damage psychological stability even if asset value is increasing. Therefore, he explained that securing the target asset within a manageable range is the way to create psychological stability.

Consider moving up during a market downturn

Song mentioned that it is very difficult to hit the exact timing in real estate investment and advised that rather than trying to match the market flow, it is right to move when one can. In particular, he added the opinion that if a market downturn occurs, homeowners must consider moving up.