"Don't listen to your family": Asset holder with 2.5 billion won targets Mapo for next move

After purchasing real estate, many feel regret if the price of an adjacent complex rises more sharply, wondering if they should have stretched their finances to buy there instead. Conversely, some feel regret after overextending themselves to buy a home, only to miss out on a better location.

In the Season 3 video of "Heegu Gives Generously" aired by KB Real Estate TV, author Song Hee-gu provided analysis and advice regarding these realistic real estate concerns. The video began by naming the subscribers "Apricot" and covered analyses of major areas such as the vicinity of Sangok Station in Incheon and Songjung-dong in Gangbuk-gu, as well as upgrading strategies based on actual stories.

"If the location difference is not large, choosing a middle floor is correct"... Analysis of Suwon Hwaseo Station case

The first story was a concern from a reader who purchased an apartment near Hwaseo Station in Suwon. The reader regretted that Hwaseo Jugong Complex 4, a nearby reconstruction complex they had passed up, rose in price more significantly than Hwaseo Station Woobang Central Park, the complex they chose after much deliberation. Specifically, the reader questioned whether they should have purchased a first-floor unit in the reconstruction complex, which had the same price as their middle-floor unit at the time of purchase, due to its superior location.

Regarding this, Song Hee-gu explained, "If the difference in location is very large, it is right to choose a first floor with a good location even if you have to overextend yourself, because first floors eventually follow the prices of middle and high floors." However, in the case of Hwaseo Station Woobang Central Park and Hwaseo Jugong Complex 4, he assessed that the current choice was a sufficiently good decision if the difference in location was not extremely large. This is because Hwaseo Jugong Complex 4 is a station-area reconstruction complex with a greatly improved commercial district due to the nearby Starfield and the expected extension of the Shinbundang Line.

Song advised, "There is a trend where if a higher-tier complex moves first, the complex below it follows," adding, "Currently, a phenomenon is appearing where Hwaseo Jugong moves and Hwaseo Station Woobang Central Park follows, so it is more important to focus on loan repayment plans and the next upgrading goal rather than regretting by comparing with other complexes." For future upgrading areas, he recommended semi-new or new complexes in areas such as Pyeongchon or Indeogwon, or complexes located right next to school districts.

"Family advice can be most dangerous"... A 2.5 billion won asset holder's move to Mapo

The second story involved a couple in their 50s facing retirement. They had purchased Lotte Castle Classia in Dongjak-gu, Seoul, for 1.45 billion won for their child's education, and despite opposition from family at the time, the decision resulted in a significant increase in asset value. The current asking price for their apartment is approximately 2 billion won, and their total available assets, including liquid assets such as stocks, amount to 2.5 billion won. They were looking for a higher-tier area that offers convenient commuting to Seoul Station and allows them to enjoy asset value appreciation while residing there for more than 10 years after retirement.

Regarding the purchase decision, Song emphasized, "It was ultimately correct to choose for themselves without being swayed by the words of parents and siblings," noting, "When making real estate decisions, advice from family can be the most dangerous." Considering their current assets and future plans, he analyzed that the Mapo area, which allows for easy commuting to Seoul Station, is the most appropriate alternative.

He strongly recommended Mapo Raemian Prugio as a specific complex. Song evaluated, "Mapo Raemian Prugio is like a 'gukbap' [reliable staple] apartment, a stable choice without failure." If the price of Mapo Raemian Prugio is burdensome, he suggested Gongdeok Xi as an alternative, though he noted that part of Gongdeok Xi is located on a hill. He added that if access to Seoul Station and convenience in using the KTX are the top priorities, Seoul Station Central Xi could be an alternative, though he pointed out that Seoul Station Central Xi tends to follow the market price of Gongdeok Xi. Meanwhile, he mentioned that complexes such as Mapo Riverwell or Mapo River Park, which are on flat land, have good school districts, and are within walking distance of the Han River, have somewhat high price ranges.

Incheon Sangok Station 'transformation'... Expectations for value increase centered on new constructions

The regional analysis segment also covered prospects for the area around Sangok Station in Incheon. The Sangok Station area, which was once a densely populated area of old villas, is seeing its entire landscape change as large-scale new apartment complexes are being built. Song diagnosed, "The Sangok Station area is currently a place where the neighborhood itself is being upgraded as new apartments form super blocks." Indeed, while Samhwan and PRUGIO were representative of the area near Sangok Station in the past, it is currently being reorganized around new constructions, with actual transaction prices rapidly rising to the 700–800 million won range.

He noted that due to the characteristics of an area far from Seoul, the value of the building tends to determine the price more than the centrality of the location. His analysis was, "In Seoul, the central location is important so even old buildings are recognized for their value, but in outlying areas, the value of new constructions is recognized much more highly." He predicted that the status of the area will rise one step further as brand apartments such as Xi and Hillstate are additionally built near exits 6 and 7 of Sangok Station.

Meanwhile, he urged caution regarding questions about the urban complex project in Songjung-dong, Gangbuk-gu. While it is expected to proceed quickly as a project promoted by the government through a special law, he pointed out that the project could be delayed if there is opposition from owners. Song advised, "Redevelopment investment is ultimately a race of speed," suggesting it is more advantageous to select places that have already received project approval or where the progress speed has been confirmed, rather than blindly investing in places in the early stages.

Source: original video (YouTube)