The apartment deposit prices are exceeding 100 million won per 3.3 square meters (pyeong). This is seen in large sizes of high-end apartments in Yongsan and Seongdong districts of Seoul. There is a commonality among young asset holders in that they can enjoy a luxurious community while keeping their privacy.
According to the Seoul Real Estate Information Plaza on the 7th, a 206 square meter (75 pyeong) unit at Nine One Hannam in Hannam-dong, Yongsan, signed a lease agreement for 7 billion won on January 16. This unit type found renters at 7.5 billion won in August and November last year, already exceeding 100 million won per 3.3 square meters. A 159 square meter (60 pyeong) unit at Acro Seoul Forest in Seongsu-dong signed a lease agreement for 6.5 billion won (24th floor) on January 17.
Current asking prices are set even higher. The asking price for the rental listing of the 206 square meter unit at Nine One Hannam is currently at the level of 7 billion to 8.2 billion won. Similarly, the rental listings for the 159 square meter unit at Acro Seoul Forest are out at 5.3 billion to 7 billion won.
Despite being large units, these apartments have a relatively high lease rate. The most recent transaction for the 206 square meter unit at Nine One Hannam was 11 billion won (5th floor) on July 31 of last year. The 159 square meter unit at Acro Seoul Forest was traded for 13.5 billion won (32nd floor) on February 4.
This is a different situation from other popular areas like Apgujeong and Banpo. In the case of the Shin-Hyundai (Hyundai 9, 11, 12) in the second Apgujeong district, where the reconstruction project is rapidly progressing, a 183 square meter unit was traded for 9.2 billion won on March 19, but the rental price reaches a maximum of 2 billion won. Another unit in the same complex signed a lease agreement for 2 billion won on February 14. As a reconstructed apartment, the residential value is assessed low compared to the investment value, resulting in a rental rate of about 21%.
In the case of the newly built large-scale apartment Raemian One Bailey in Banpo, while the sale price has exceeded 20 million won per 3.3 square meters, the rental price has not exceeded 10 million won. A 133 square meter (52 pyeong) unit at One Bailey recorded peak transaction prices of 10.6 billion won (28th floor) for sale and 4.7 billion won for rental.
The cases of Nine One Hannam and Acro Seoul Forest are more focused on privacy rather than popularity, attracting young assets. Areas like Banpo and Daechi offer convenience in terms of educational districts, amenities, and transportation, but the large complexes with thousands of households make privacy difficult.
Yoon Ji-hae, chief researcher at Real Estate R114, noted, "In the past, high-income individuals preferred single houses, but the young high-income individuals now want private spaces in convenient multi-family housing," adding, "Since there are not many households, it is easy to calculate sale and collateral value, making it not difficult to liquidate."
Ham Young-jin, head of the real estate research lab at Woori Bank, stated, "The perception of these areas as high-end residences focused on mid to large sizes is spreading," and added, "Despite the high rental prices, there is substantial demand, and transactions are believed to be quite active."