Seoul Large Apartment Prices 'Soar'... Average Exceeds 2 Billion Won

August KB Housing Sale Price Trends
Up 171.54 Million KRW (9.2%) in One Year

Gangbuk Average Exceeds 1.5 Billion KRW
Gangnam 11 Districts Near 2.2 Billion KRW Average

'Ma-Yong-Seong' Leads Gangbuk Price Increase

[Asia Economy Reporter Lee Chun-hee] The average sale price of large apartments in Seoul has surpassed 2 billion KRW for the first time. The Gangbuk area also exceeded 1.5 billion KRW, continuing its strong performance despite the government's successive regulations.

According to KB Kookmin Bank's monthly housing price trend on the 28th, the average sale price of large apartments over 135㎡ (exclusive area) in Seoul in August was recorded at 2.02692 billion KRW. This is the first time the average price of large apartments has exceeded 2 billion KRW. It rose by 28.5 million KRW compared to 1.99841 billion KRW last month. Compared to 1.85538 billion KRW in August last year, it increased by 171.54 million KRW, marking a 9.2% rise over one year.

As the price increase trend continues, the average sale price in the 14 districts of Gangbuk also recorded 1.51213 billion KRW, surpassing 1.5 billion KRW for the first time. After exceeding 1.43 billion KRW for the first time in January at 1.43295 billion KRW, the average sale price rose by about 100 million KRW again in eight months. The 11 districts of Gangnam surpassed 2.1 billion KRW in March at 2.1089 billion KRW and are now approaching 2.2 billion KRW with 2.18988 billion KRW this month.

The price of large apartments is more than twice the average sale price of all apartments in Seoul, which is 985.03 million KRW. The overall average price in Gangbuk is 762.57 million KRW, and in Gangnam, it is 1.18195 billion KRW.

Among the Gangbuk areas, the large apartment prices in the Mapo, Yongsan, and Seongdong districts, collectively called 'Ma-Yong-Seong,' led the overall upward trend.

In Mapo-gu, the 138.08㎡ unit of 'Hangang Bamseom Xi' in Hajung-dong was traded for 2.06 billion KRW on the 11th, surpassing 2 billion KRW for the first time. Compared to last month’s transactions ranging from 1.83 billion to 1.9 billion KRW, the market price rose by nearly 200 million KRW in just one month. The 160.39㎡ unit in this complex also set a new record by trading at 2.2 billion KRW last month. Compared to the last transaction of 1.89 billion KRW in June last year, it surged by more than 300 million KRW in one year.

The 235.31㎡ unit of 'Hannam The Hill' in Hannam-dong, Yongsan-gu, was traded for 5.3 billion KRW on the 17th of last month. This is the highest price transaction among Gangbuk apartments reported in July and August. Compared to the ownership change at 4.8 billion KRW in January, the price increased by 500 million KRW in seven months.

Another ultra-high-priced apartment complex, 'Trimage' 136.56㎡ in Seongsu-dong 1-ga, Seongdong-gu, was sold for 4.05 billion KRW last month, setting a new record. Nearby 'Galleria Foret' also saw a 195.2㎡ unit traded for 3.69 billion KRW on the 1st.

A panoramic view of Tower Palace in Dogok-dong, Gangnam-gu, Seoul. [Image source=Yonhap News]

South of the Han River, the 235.74㎡ unit of 'Tower Palace Phase 3' in Dogok-dong, Gangnam-gu, was traded for 5.425 billion KRW last month. This is the highest price among apartments traded in Seoul in July and August and the highest ever across Tower Palace Phases 1 to 3. After being traded for 4.32 billion KRW in 2006, there were no transactions for 14 years before the price jumped by more than 1.1 billion KRW at once.

In Seocho-gu, the 244.97㎡ unit of 'Banpo Xi' in Banpo-dong was sold for 4.6 billion KRW on the 25th. This unit, which was also traded at the same price last month, has seen its price rise by 50% compared to the previous transaction of 2.974 billion KRW in February 2018.

However, the industry expects that this trend will be difficult to sustain as the government is strengthening regulations, including banning mortgage loans for houses priced over 1.5 billion KRW.

Park Won-gap, Senior Real Estate Specialist at KB Kookmin Bank, said, "The government regulates ultra-high-priced houses while supporting mid- to low-priced houses," and predicted, "Ultra-high-priced houses are likely to enter a pause phase with reduced transactions."

He added, "However, since some choose the 'smart one house' strategy, the demand may not fall that much," suggesting the possibility of a tug-of-war market between buyers and sellers for the time being.

This content was produced with the assistance of AI translation services.