52 Apartments in Seoul Exceeding 100 Million KRW per 3.3㎡... Highest Ever Recorded

Gaepo Jugong 1 Complex 180.86 Million KRW per 3.3㎡

Jamsil Rescence and Samsung Hillstate in Land Transaction Permission Zone Show 'Price Reversal Phenomenon' Amid Small Unit Price Surge

[Asia Economy Reporter Lee Chun-hee] This year, the number of apartment complexes in Seoul where the sale price per exclusive area exceeded 100 million KRW per 3.3㎡ has reached an all-time high. Despite the government's successive real estate measures, record-high prices continue mainly in high-end apartments.

According to an analysis by real estate information provider Economy Man Lab of the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, as of the 14th of this year, there were 52 apartment complexes (excluding duplicates within complexes) sold at prices exceeding 100 million KRW per 3.3㎡.

This surpasses last year's 45 complexes, marking the highest number ever recorded. Compared to 19 complexes in 2018, this is a 2.7-fold increase. However, this calculation is based on the 'exclusive area' rather than the 'supply area,' which is the standard used in the industry for the '100 million KRW per pyeong' benchmark.

The apartment complex with the highest transaction price per 3.3㎡ this year was Jugong 1 Complex in Gaepo-dong, Gangnam-gu, Seoul. In March, a 56.57㎡ (exclusive area) unit was sold for 3.095 billion KRW, recording a transaction price of 180.86 million KRW per 3.3㎡. This is a reconstruction complex that was rebranded as DH Firstier I-Park in July, and was in the final demolition stage at the time of the transaction. It is analyzed that the price was set high due to the future value of being able to receive a larger housing type, as the land share of the unit is known to exceed 80㎡.

Perspective view of 'The H Firstier I-Park' in Gaepo-dong, Gangnam-gu (Provided by Hyundai Engineering & Construction)

Among general complexes, Acro River Park in Banpo-dong, Seocho-gu showed the highest price at 138.93 million KRW per 3.3㎡. Units of 84.95㎡ in this complex were traded at 3.57 billion KRW in July, and many transactions also exceeded 100 million KRW per 3.3㎡ based on supply area.

Following were Raemian Daechi Palace in Daechi-dong, Gangnam-gu (137.77 million KRW), Resentz in Jamsil-dong, Songpa-gu (137.34 million KRW), and Raemian Prestige in Banpo-dong, Seocho-gu (133.58 million KRW). Outside Gangnam, Trimage in Seongsu-dong 1-ga, Seongdong-gu had the highest price at 130.52 million KRW per 3.3㎡.

Samsung-dong Hillstate in Gangnam-gu (127.24 million KRW), Banpo Hillstate in Banpo-dong, Seocho-gu (124.05 million KRW), Hannam The Hill in Hannam-dong, Yongsan-gu (123.51 million KRW), and Banpo Xi in Banpo-dong, Seocho-gu (121.80 million KRW) were also traded at prices exceeding 120 million KRW per 3.3㎡.

Notably, in Resentz in Jamsil-dong and Hillstate in Samsung-dong, the highest price per 3.3㎡ transactions occurred in small units of 27.68㎡ (1.15 billion KRW) and 26.5㎡ (1.02 billion KRW), respectively, drawing attention. In both complexes, medium to large units over 59㎡ did not exceed 100 million KRW per 3.3㎡ in transaction price, whereas small units between 26 and 31㎡ all exceeded 100 million KRW per 3.3㎡.

This price inversion by unit size is interpreted as an effect of regulations. Jamsil-dong and Samsung-dong, where these complexes are located, were designated as land transaction permission zones on June 23. In these zones, transactions of houses with land shares exceeding 18㎡ require permission from the district office chief. Meanwhile, the land shares of small units in these complexes are around 12 to 14㎡, allowing free transactions without permission.

Due to demand to avoid regulations, transactions concentrate on small units with smaller land shares, causing prices to rise accordingly. In fact, among 59 transactions in Resentz during June and July, 25 were for 27.68㎡ units, accounting for 42.4% of the total.

An industry insider analyzed, "Due to the government's strong regulations, multi-homeowners are increasingly focusing on owning a single highly preferred residence to reduce tax burdens," adding, "The number of apartment complexes with prices exceeding 100 million KRW per 3.3㎡ is also rapidly increasing."

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