Despite the strengthening of loan regulations, prices for high-end APT. in Gangnam, Seocho, and other Gangnam areas continue to soar, with average transaction prices in Gangnam and Seocho approaching 100 million won per 3.3㎡.
According to the real estate industry on the 15th, high-priced APT. transactions that are resetting record prices are steadily occurring in Seocho and Gangnam districts.
In Banpo-dong, Seocho-gu, a 132㎡ unit of 'Banpo Xi' set a new record, trading at 5.35 billion won in December last year, 10 million won higher than four months earlier. Similarly, a 133㎡ unit at 'Raemian One Bailey' also recorded a new high at 10.6 billion won in December last year, which is an increase of 3.35 billion won from five months ago.
'Acro River Park' in Banpo-dong also renewed its record prices in various unit sizes. A 59㎡ unit sold for 3.65 billion won, up 350 million won from six months ago, while an 84㎡ unit changed hands for 5.3 billion won, which is 1 billion won higher than its trade price six months ago. A 112㎡ unit also saw a transaction occur at 6.5 billion won, rising 500 million won from seven months ago, marking a new record.
Since the beginning of this year, APT.s including 'Raemian Prestige', 'Raemian One Pentas', and 'Banpo Mido 1st' in Banpo-dong have found new owners, setting record prices.
In neighboring Jamwon-dong, a 84㎡ unit of 'New Banpo Cheonggu' traded for 2.8 billion won in January this year, up 1 billion won from two months ago. A 59㎡ unit also traded at 2.225 billion won in December last year, setting a new record. 'New Banpo 2nd' also recorded new highs this January for its 92㎡ unit at 3.82 billion won, while in December last year, 68㎡ traded for 3.275 billion won, 107㎡ for 4.5 billion won, and 137㎡ for 5.38 billion won.
In Seocho-dong, a 160㎡ unit of 'Jinhung APT.' was traded for 3.39 billion won in December last year, while a 104㎡ unit of 'Seocho Prugio Summit' traded at 3.27 billion won, breaking the previous record.
There is also a surge in high-priced APT. transactions in Gangnam-gu. In December last year, a 97㎡ unit at 'Cheongdam Leiel' sold for 4.94 billion won, setting a new record. This year, a 120㎡ unit at 'Cheongdam Daewoo Euro County' traded for 3 billion won and a 114㎡ unit at 'Samsung Cheongdam' sold for 2.6 billion won, both resetting previous records.
In Apgujeong-dong, a 208㎡ unit of 'Hanyang 4th' traded for 7.7 billion won in January this year, and a 131㎡ unit of 'Hyundai 1·2nd' was sold for 6.05 billion won, marking record transactions. New high transactions were also seen for 'Misong 1st' and 'Hanyang 1st.'
'Tower Palace' in Dogok-dong also recorded the highest historical price as a 244㎡ unit sold for 7.3 billion won in January this year. In Daechi-dong, an 84㎡ unit of 'Eunma APT.' traded for 3.04 billion won, and a 126㎡ unit of 'Hanbo Mido Mansion 1·2nd' sold for 4.1 billion won, both at new record prices.
As high-priced APT. transactions continue, the average transaction price for APT. in Gangnam and Seocho area is nearing 100 million won per 3.3㎡. According to the real estate information platform Dabang, as of December last year, the average transaction price per 3.3㎡ in Gangnam and Seocho exceeded 90 million won.
Among the 25 districts in Seoul, Seocho-gu (92.85 million won) and Gangnam-gu (91.45 million won) ranked first and second respectively for the highest average transaction prices per 3.3㎡.
Real estate experts analyzed that the high-priced APT. market in Gangnam is driven by transactions aimed at actual residence by high-income earners, resulting in price increases regardless of loan regulations or a downturn in the real estate market.
Kim Hak-ryeol, head of Smart Tube Real Estate Research Institute, noted that 'the volume of transactions for APT.s below 900 million won, which are the benchmark for applying loan regulations, has dropped significantly. In contrast, high-priced APT. transactions, often involving actual users who do not mind financing costs, occur. High-income actual users rarely receive loan-to-value ratios (LTV) exceeding 50%, and most are upgrading their dwellings due to concerns over workplaces or children's schools.'
Kim also added that 'the high-priced APT. market has not been significantly affected by loan regulation policies or the real estate market. Demand for moving to better locations continues to drive prices slightly up.' He stated, 'This is a normal phenomenon, but the decrease in transactions for mid-to-low-priced APT.s makes high-priced APT. transactions more noticeable.'
Shim Hyung-seok, head of Udaebang Research Institute (professor at the IAU), said, 'As the upper 1% and upper 10% income groups become polarized within high-income groups, the high-priced APT. market continues to see upward price trends, driven by major transaction clients from the top 1%.' He further explained, 'Unlike past periods when housing prices generally surged, the current market has shown relative contraction, but actual user-focused transactions are on the rise, contributing to continued price increases in high-priced APT.s in Gangnam.'
Forecasts suggest that the high-priced APT. market in Gangnam will continue to experience gradual price increases this year.
Shim predicted, 'Due to the diversification of investment conditions in markets such as the U.S. stock market and cryptocurrencies, income at the upper 1% is expected to exceed that of the upper 10%. This trend will expand the demand for high-priced real estate in Seoul, classified as a safe asset. In particular, areas previously bundled as land transaction approval zones are expected to see increased demand due to the anticipation of regulatory relief.'