"House Prices Falling? Only No Transactions" Gangnam High-End Apartment Prices Remain Unchanged

Gangnam Also Faces Sales Transaction Cliff... 13 Cases in Seocho-gu in February
Apgujeong Hyundai 7th Complex Sold for 5 Billion Won Last Month
Gangbuk Sees Transactions with Over 100 Million Won Price Drops
Experts Say "Housing Price Stabilization Still Difficult to Generalize"

Apgujeong Hyundai Apartment / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Hwang Seoyul] The terms "quick sale transactions" or "declining house prices" sound like stories from another world when it comes to major apartments in Gangnam. High-priced apartments dominating Gangnam are still setting new record prices. There are also voices saying it is difficult to generalize that house prices have fallen amid a contraction in sales transactions.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 4th, last month, Hyundai 7th Apartment in Apgujeong-dong, Gangnam-gu, Seoul (exclusive area 144.2㎡) was traded for 5 billion KRW, setting a new highest real transaction price. The most recent transaction of the same area was in December 2020, with a real transaction price of 4 billion KRW. Raemian Seocho Stage S in Seocho-dong, Seocho-gu (84.17㎡) also set a new record price by trading for 2.4 billion KRW in January.

The frozen sales transaction situation was the same in Gangnam, where high-priced apartments are lined up. According to the Seoul Real Estate Information Plaza, 27 apartments were traded in Gangnam-gu last month. This is about one-eighth of the 208 transactions in the same month last year. Seocho-gu also had only 13 transactions last month. A representative of real estate agency A in Seocho-gu said, "Since loans are not available, it is difficult for transactions to be completed unless the buyer has enough cash to afford the high prices."

Even in a situation where transactions are not actively taking place, prices of major high-priced apartments in Gangnam are hardly falling. The asking price for Hyundai 7th Apartment in Apgujeong-dong remains at a level similar to the recent real transaction price. According to Naver Real Estate, listings for the exclusive area of 144.2㎡ are priced between 4.9 billion and 5.5 billion KRW. A representative of real estate agency B near Hyundai Apartment in Apgujeong-dong said, "Owners usually do not lower their asking prices below market value," adding, "There is an expectation of change after the presidential election, so they are not in a hurry."

On the other hand, in the Gangbuk area, it is easy to find recent real transaction prices that are more than 100 million KRW lower than previous ones. In January, the Gireum New Town 2nd Complex Prugio in Gireum-dong, Seongbuk-gu (84.97㎡) was traded for 950 million KRW, down 100 million KRW from the 1.05 billion KRW transaction in November last year. Samgaksan I-One in Mia-dong, Gangbuk-gu (exclusive area 84.705㎡) was also traded lower in February (788 million KRW) compared to the previous real transaction price (899 million KRW).

Professor Kwon Daejung of Myongji University's Department of Real Estate explained, "Unlike Gangbuk, which has many low-priced small and medium-sized apartments, Gangnam's listings are originally priced high, so actual transactions occur among cash-rich buyers," adding, "Loan regulations do not significantly affect participants in real transactions of Gangnam apartments, so house prices do not fall."

Professor Kwon added, "Since demand for purchase remains and transactions themselves are not taking place, prices have stabilized, so it is not appropriate to generalize that house prices are being controlled."

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