"Please Contact Me First If a House Is Built": Wealthy Buyers Eyeing... Will Ultra-Luxury Homes Worth 20 Billion Won Rise? [Real Estate AtoZ]

Rare 8,000 m² Prime Plot in Hannam-dong

Booyoung Draws Attention Again With 22.5 Billion Won Acquisition

Only Ultra-Luxury Villas Possible in Type 1 Exclusive Residential Zone

Developers Eye the Site, but Permits and Neighborhood Conc

Behind the Grand Hyatt Seoul in Hannam-dong, Yongsan-gu, Seoul. Climbing the steep road alongside the hotel, a long stretch of white temporary fencing lined the street. Signs reading "Private Property Owned by Booyoung Residential" were prominently displayed on the fences. There was no construction equipment or temporary site office visible inside. This is a prime plot in Hannam-dong, approximately 8,000 square meters in size, which Booyoung Residential acquired three years ago for 222.3 billion won.

Behind the Grand Hyatt Seoul in Hannam-dong, Yongsan-gu, Seoul. On the left is the hotel site, and on the right is the Hyatt parking lot site owned by Booyoung Residential. A sign reading "Private Property Owned by Booyoung Residential" is attached to the white temporary fence. Photo by Seo-yoon Choi

This area is a high-end single-family residential zone in Hannam-dong, offering both Namsan Mountain and Han River views. It shares the same living area as ultra-luxury residences such as Hannam The Hill and Nine One Hannam. Nearby are the private homes of the Samsung family, as well as the chairmen of JoongAng Ilbo, Shinsegae, and Booyoung.

Recently, Booyoung Residential purchased a single-family home in Hannam-dong, previously owned by Shinsegae Group Chairman Jeong Yong-jin, for 25.5 billion won. This property is located right next to the Hyatt parking lot site. With the company acquiring not only the Hyatt parking lot site but also the adjacent single-family home, the future of luxury residential development in Hannam-dong has once again become a focal point in the market.

On May 16, a local real estate agency representative said, "Many wealthy individuals want to purchase if homes are built here," adding, "Even among residents of Nine One Hannam or Hannam The Hill, there are requests to be connected first if a house with a good view is constructed in this area." Hannam-dong is already a neighborhood where transactions in the 20 billion won range are not unusual. In August 2023, Parc Hannam was sold for 18 billion won, setting a record for the highest apartment price, while Nine One Hannam set new records for the highest price for multi-family housing, changing hands for 22 billion won in July 2024 and again for 25 billion won in February last year.

The high potential for luxury housing development is due to the fact that the plot sold by Chairman Jeong is designated as a Type 1 Exclusive Residential District. This is the most strictly regulated residential zoning, allowing only low-rise developments of two floors or less, primarily for single-family homes. The Hyatt parking lot site includes both this Type 1 Exclusive Residential District and the slightly less restrictive Type 1 General Residential District, which in principle permits villas (row houses and multi-household residences) up to four stories. Both sites are also within the Namsan Mountain scenic area, subjecting them to additional restrictions on building height and exterior design. Given that the land acquisition cost exceeds 240 billion won, industry consensus holds that only ultra-high-end villas or townhouses, each priced in the hundreds of billions of won, would make the development financially viable.

In particular, the Hyatt parking lot site has long attracted attention in the real estate developer industry. After the development of neighboring plots such as Hannam The Hill (opened in 2011) and Nine One Hannam (opened in 2019), this has been considered the last major developable site left in Hannam-dong. There was even an actual development attempt in 2021, when a consortium including Idun Asset Management and developer UOD pursued a high-end row house and single-family housing project, but it was derailed due to a liquidity crunch. Since then, Booyoung, leveraging its financial strength, has acquired the site.

At the end of the Hyatt parking lot site behind the Grand Hyatt Seoul in Hannam-dong, Yongsan-gu, Seoul. The site continues along a high retaining wall next to the road, situated higher than the surrounding roads. Photo by Seo-yoon Choi

A source in the real estate development industry said, "The Hyatt parking lot site is surrounded by verified luxury residential areas, and developers have reviewed high-end projects for this location multiple times in the past." The source added, "There were even proposals to place two single-family homes at the rear of the Hyatt parking lot site and luxury villas at the front," and continued, "There was also talk that the sale price could approach 20 billion won per unit."

However, actual development faces variables such as permitting and negotiations with neighbors. The area is densely populated by the homes of leading business figures, and its elevated topography could lead to civil complaints regarding building size, views, landscape, and privacy concerns.

A Booyoung Residential representative said, "No specific plans have been set regarding the recent purchase of the single-family home," and added, "Development of the Hyatt parking lot site has not yet been finalized either."

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