Gangnam 38 Locations, Seocho 23 Locations, Songpa 5 Locations... Rapid Increase in Apartments Priced at 100 Million KRW per Pyeong

Last Year, a Total of 790 Apartment Sales Exceeding 100 Million KRW per Pyeong

Apartment complexes in downtown Seoul as seen from 63 Square in Yeouido, Seoul.
[Image source=Yonhap News]

[Asia Economy Reporter Lim Onyu] Gangnam-gu 38 locations, Seocho-gu 23 locations, Songpa-gu 5 locations....

Last year, as house prices rose due to the 'real estate boom,' the number of ultra-high-priced apartment transaction complexes with prices exceeding 100 million KRW per 3.3㎡ (pyeong) sharply increased.

According to real estate information provider Economy Man Lab on the 30th, there were a total of 790 apartment sales transactions priced over 100 million KRW per pyeong last year. This is a 23.6% increase compared to the previous year (639 cases). Compared to 2018 (228 cases), it is 3.5 times larger, and more than 30 times higher than in 2017 (26 cases).

Not only the transaction volume but also the number of complexes with prices exceeding 100 million KRW per pyeong increased significantly from 3 in 2017 to 68 last year. The area with the most apartments priced over 100 million KRW per pyeong was Seoul's Gangnam-gu, with a total of 38 complexes. Seocho-gu followed with 23 complexes, and Songpa-gu with 5 complexes, making up the majority in the three Gangnam districts. Following the Gangnam 3 districts, in the 'Mayongseong (Mapo, Yongsan, Seongdong-gu)' area, known for many high-priced apartments, there was one complex each in Yongsan-gu and Seongdong-gu.

The highest price per pyeong transaction was recorded in March last year at Gaepo Jugong 1 Complex in Gaepo-dong, Gangnam-gu, with a 56㎡ (exclusive area) apartment. This apartment was traded for 3.095 billion KRW, reaching a price of 180 million KRW per pyeong. Economy Man Lab explained, "This apartment is undergoing reconstruction, and the future value reflecting the possibility of receiving a larger housing type after moving in was factored into the high price."

The second highest price per pyeong transaction was an 84㎡ apartment at Acro River Park in Banpo-dong, Seocho-gu. It changed hands for 3.72 billion KRW in December last year, recording a price of 144.72 million KRW per pyeong. The Raemian Daechi Palace 59㎡ in Daechi-dong, Gangnam-gu, was traded for 2.5 billion KRW in June last year, at 137.76 million KRW per pyeong, and the Resence 27㎡ in Jamsil-dong, Songpa-gu, was contracted for 1.15 billion KRW in July last year, trading at 137.34 million KRW per pyeong.

For the first time, a complex with a jeonse (long-term lease) price exceeding 90 million KRW per pyeong also appeared. The Raemian Gaepo Luceheim 71㎡ in Irwon-dong, Gangnam-gu, was reported to have signed a jeonse contract with a deposit of 2 billion KRW in December last year. The price per pyeong reached 92.23 million KRW.

Hwang Hansol, a research fellow at Economy Man Lab, said, "Despite the government's strong regulations last year, the preference for a so-called 'smart one house' intensified, and the upward trend in Seoul apartment prices did not subside, with record-high prices being repeatedly set. If the low-interest rate trend and supply shortage sentiment continue this year, the number of ultra-high-priced apartment transactions is likely to increase."

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