Record High Prices Amid Apartment Transaction Freeze in Major Seoul Areas

Mapo Raemian Prugio Complex 4 and Godeok Graciousium, etc.

Price Increase Continues Due to Listing Shortage Phenomenon

[Asia Economy Reporter Kim Min-young] Amid a sharp contraction in housing transactions, the apartment market in Seoul is showing signs of divergence. Although the proportion of complexes with falling prices in overall transactions is increasing, newly built apartments in key areas continue to set record-high prices. Some predict that the differentiated market trend will intensify as buying sentiment weakens due to tax hikes and loan regulations.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price system on the 14th, a 59.9㎡ (exclusive area) unit in Mapo Raemian Prugio Complex 4 in Ahyeon-dong, Mapo-gu, Seoul, was confirmed to have been sold for 1.7 billion KRW at the end of last month. This is 150 million KRW higher than the 1.55 billion KRW transaction price recorded four months ago in May, which had already exceeded the loan prohibition threshold of 1.5 billion KRW. Although there have been only four actual transactions of this housing type this year, its value continues to soar. The 84㎡ unit in the same complex also set a new record last month by selling for 1.935 billion KRW, surpassing the previous month's record of 1.898 billion KRW within a month.

Record-high prices are appearing continuously in major areas of Seoul. Most are newly built apartments in popular areas such as Gangnam, downtown, and Magok district. The actual transaction price of an 84.24㎡ unit in Godeok Graciousium, Godeok-dong, Gangdong-gu, which was 1.365 billion KRW in May, jumped to 1.89 billion KRW last month. This price is 5 million KRW higher than the previous month's record. This housing type also had only five actual transactions this year.

In Magok district, Gangseo-gu, which is bustling with the development of the MICE complex, record-high transactions have also been observed. A 84.91㎡ unit in Magok M-Valley Complex 7 was sold for 1.495 billion KRW (1st floor) in July, setting a new record, and just two months later, it found a new owner for 1.755 billion KRW (11th floor).

Regarding this series of record-high prices, market analysts explain that although listings are limited due to capital gains tax burdens, real demand buyers are supporting prices with expectations of further price increases. Yoon Ji-hae, senior researcher at Real Estate 114, said, "Since June this year, a listing shortage phenomenon has occurred due to tax surcharges. Nevertheless, considering demand relative to the number of listings, a situation has formed where many buyers compete for a small number of listings."

However, in various parts of Seoul, transactions with prices lower than previous deals are also increasing. According to data on 'Seoul Apartment Actual Transaction Price Trends' received by Kim Hoe-jae, a member of the Democratic Party, from the Ministry of Land, Infrastructure and Transport, the proportion of transactions with prices lower than the previous transaction was only 18.0% (493 out of 2,441 cases) in January this year but rose to 33.3% in April.

An industry official assessed, "Since there is still an expectation of further price increases, the differentiation between popular and non-popular areas is likely to become more pronounced."

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