Last year, 6 out of 10 transactions of ultra-high-priced apartments, worth over 5 billion won, took place in Apgujeong-dong, Gangnam-gu, and Banpo-dong, Seocho-gu. In contrast, ultra-high-priced transactions were rarely made in other areas of Gangnam, such as Seocho-dong, Bangbae-dong, and Jamsil-dong.
Among the prime areas in Gangnam, two legal districts are noted to reflect the residential demands and investment value of domestic asset holders well, leading to frequent transactions of ultra-high-priced properties.
According to the Ministry of Land, Infrastructure and Transport, there were 406 transactions of ultra-high-priced apartments worth over 5 billion won in Seoul last year. The area with the highest number of ultra-high-priced transactions was Apgujeong-dong, Gangnam-gu, with 137 transactions. Apgujeong-dong accounted for 33.7% of the total ultra-high-priced transactions last year. In Banpo-dong, Seocho-gu, there were also 121 transactions (29.8%) of ultra-high-priced properties. Thus, 63.5% (258 transactions) of transactions worth over 5 billion won concentrated in these two legal districts, Apgujeong-dong and Banpo-dong.
On the other hand, such transactions were rarely conducted in other areas of Gangnam, as well as in Yongsan and Yeouido. Excluding the two districts, the area with the next highest number of ultra-high-priced transactions was Dogok-dong, Gangnam-gu, with only 26 transactions, followed by Hannam-dong, Yongsan-gu (23 transactions), Daechi-dong, Gangnam-gu (21 transactions), Seongsu-dong, Seongdong-gu (19 transactions), and Ichon-dong, Yongsan-gu (13 transactions), all of which only had 10 to 20 transactions. Areas like Samsung-dong, Gangnam-gu (10 transactions), Cheongdam-dong (9 transactions), Yeouido-dong, Yeouido-gu (6 transactions), Jamwon-dong, Seocho-gu (6 transactions), Gaepo-dong, Gangnam-gu (4 transactions), Nonhyeon-dong, Gangnam-gu (3 transactions), and Seocho-dong, Seocho-gu (3 transactions) also had very few ultra-high transactions. In Bangbae-dong, Seocho-gu, and Jamsil-dong, Songpa-gu, there was one ultra-high-priced property change each last year.
Experts analyze that Apgujeong-dong and Banpo-dong have risen as the most valuable areas in Gangnam, meaning that their location and investment value overwhelm those of other regions.
Go Jong-wan, head of the Korea Asset Management Institute, said, "Banpo-dong has a location where more than 3,000 households are clustered in newly built large-scale apartment complexes, and it is well-equipped with infrastructure such as education, transportation, shopping, and green spaces, as well as being positioned to overlook the Han River, making it a space that best reflects the residential trends of ultra-high asset holders." He added, "Apgujeong-dong is expected to undergo large-scale reconstruction in a prime location, attracting investment demand from asset holders."
Chae Sang-wook, representative of Connected Ground, explained, "Prices reflect both location and the product value of apartments, and it is judged that the values of Apgujeong-dong and Banpo-dong are the highest in Korea, meaning that all conditions of the apartments, including age, size, and area, are better than those in neighboring regions."