Value Surge Driven by Scarcity: Luxury Housing Market Focuses on 'Seoul One I-Park'

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The 6·27 policy measures have intensified the polarization of the Seoul real estate market. While the pace of price increases has slowed and listings are disappearing, indicating a weaker market, ultra-high-end homes are repeatedly setting new record prices due to their scarcity.

According to the Ministry of Land, Infrastructure and Transport's Actual Transaction Price Disclosure System, on the 1st of last month, a 273㎡ unit at The Penthouse Cheongdam (PH129) in Cheongdam-dong, Gangnam-gu, Seoul, was sold for KRW 19 billion, marking a record-breaking transaction. The previous transaction for the same unit size was KRW 13.8 billion in December last year, meaning the price rose by KRW 5.2 billion in just seven months.

In May, two bidders competed for the top-floor 269㎡ unit of 'I-Park Samsung' in the auction market, and it was sold for KRW 13,043,520,000. Since then, as of August, all 244㎡ units of 'I-Park Samsung' have been listed at KRW 13 billion, indicating a trend of price alignment.

This apartment complex, which was completed in March 2004 and is now in its 21st year, achieved this exceptionally high auction price due to the scarcity of penthouses and the fact that auctioned properties are exempt from land transaction permit requirements.

A review of the Ministry of Land, Infrastructure and Transport's actual transaction data shows that the value of penthouses is independent of the age of the complex or its location. For example, in January this year, a 238㎡ penthouse at 'Trapalis Western Avenue' in Mok-dong, Yangcheon-gu, changed hands for KRW 7.25 billion. This price is higher than the KRW 6.9 billion paid for a 116㎡ unit at 'Raemian One Bailey' during a similar period, and also higher than the KRW 7.1 billion paid for a 160㎡ unit at 'Hyundai 2nd' in Apgujeong-dong in February this year.

An industry expert commented, "Penthouses in Seoul, which are priced at several billion won, are targeted at a specific high-income demographic rather than the general public. Therefore, their value is often determined more by scarcity than by general market conditions. If this scarcity is combined with future potential, the value can far exceed typical market forecasts."

This trend is also clearly visible in new luxury residential complexes. For instance, 'Seoul One I-Park,' which was launched in November last year, attracted significant market attention by offering a large number of penthouses?unusual for the Gangbuk area?as part of its premium mid- to large-sized housing lineup.

The highest-priced 244㎡ unit was offered at around KRW 4.8 billion, which is considered competitively priced compared to recent penthouse transactions in Seoul. The location value, due to it being the largest transit-oriented development in Gangbuk, combined with the 'scarcity of penthouses,' is expected to result in high future value.

A sales representative for Seoul One I-Park stated, "Even before the launch, there was steady interest from high-income buyers in the penthouses. Currently, with a 99% contract rate, only a few penthouses remain available, and inquiries are continuing for these units."

With the rise in penthouse values and the emergence of the Gwangwoon University Station area as a new hub in Seoul, the penthouses at Seoul One I-Park are being seen as symbolic assets that offer not just luxury living but also future value. In particular, the opportunity to enjoy premium top-floor residences at relatively reasonable prices is drawing strong interest from buyers.

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