From Large Gangnam Properties to Stirring... Gradually Rising House Prices

Southeast Region Apartment Sale Price Change Rate Over 135㎡ Up 0.07%P
Gangnam and Seocho Rise After Two Months...Only 2 of 25 Seoul Districts
Apgujeong Sees Record Highs...Some Places Up Over 2 Billion Won in One Year

Apgujeong Hyundai Apartment_Real Estate Reference Photo / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Jo Gang-wook] Apartment prices in Gangnam-gu and Seocho-gu, Seoul, have turned to an upward trend after more than two months. In particular, prices of large apartments surged significantly. As expectations grow for President-elect Yoon Seok-yeol's pro-market real estate pledges, there is a forecast that housing prices could shift to an upward trend starting from the Gangnam area, where reconstruction issues exist.

According to the weekly apartment price trend time series data from the Korea Real Estate Board on the 25th, this week (based on the survey on the 21st), the price index change rate for large apartments exceeding 135㎡ in the southeastern area, including Gangnam-gu, Seocho-gu, and Songpa-gu in Seoul, rose from 0.01% last week to 0.08%. By size category, this is the only upward trend in the southeastern area. The other five size segments, from 40㎡ or less to 135㎡ or less, recorded either flat or negative changes.

With the sharp rise in large apartment prices, Gangnam-gu and Seocho-gu, which had been fluctuating between flat and downward trends, turned to a 0.01% increase. This is the first rise in eight weeks since the fourth week of January when both districts recorded a 0.01% increase. Among the 25 autonomous districts in Seoul this week, only Gangnam-gu and Seocho-gu saw increases. Seoul apartment prices narrowed their decline from -0.02% last week to -0.01% this week. It appears that Gangnam housing prices are pushing up Seoul's overall housing prices. A Korea Real Estate Board official said, "In Gangnam, mid-to-large sized apartments and some reconstruction projects saw record-high transactions and rising asking prices," adding, "In Songpa-gu and other areas, urgent sale properties were exhausted and asking prices rose, leading to a flat trend."

In fact, the representative Gangnam reconstruction project, Shinhyundai 11th complex in Apgujeong-dong, with an exclusive area of 183.41㎡, set a new record price with a direct transaction of 5.95 billion KRW (4th floor) on the 17th. This price is 750 million KRW higher than the previous highest price of 5.2 billion KRW (13th floor) in December 2020. Also, Gaepo Woosung 1st complex in Daechi-dong, with an exclusive area of 158.54㎡, was sold for 5.1 billion KRW (12th floor) on the 19th, rising 1.5 billion KRW compared to the previous highest price of 3.6 billion KRW in July 2019. In Seocho-gu, Raemian Prestige in Banpo-dong, with an exclusive area of 222.76㎡, changed hands for 7.6 billion KRW (26th floor) on the 7th, up 150 million KRW from 7.45 billion KRW (25th floor) in January. Considering that previous transactions were around 5.2 billion to 5.4 billion KRW, this means it rose by more than 2 billion KRW over about a year. Samho 3 in Bangbae-dong, with an exclusive area of 181.6㎡, set a new record price with a transaction of 2.5 billion KRW (6th floor) on the 15th of last month.

The market expects the strong price trend of ultra-large apartment complexes in the Gangnam area to become more pronounced. Since the inauguration of the Moon Jae-in administration, the supply of large-sized apartments has been limited, and due to heavy property taxes and regulations on multiple homeowners, the preference for owning a 'smart single property' has become clear. This is also interpreted as a sign of market changes driven by expectations for the easing of real estate regulations promised by President-elect Yoon. A representative of a real estate agency in Seocho-gu said, "With the heavy comprehensive real estate tax, the atmosphere is to own one property rather than multiple ones," adding, "Large apartments have few listings, but those that come out are being sold quickly."

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