The sale price of small apartments under 60㎡ in Gangnam, Seoul, has exceeded 4 billion won for the first time this year. According to KB's market data, the average sale price of small apartments in 11 districts south of the Han River (Gangnam, Seocho, Songpa, Gangdong, Gangseo, Gwanak, Guro, Geumcheon, Dongjak, Yangcheon, and Yeongdeungpo) in Seoul last month was 1.01398 billion won, setting a new monthly record since the survey began.
According to the real transaction price disclosure system of the Ministry of Land, Infrastructure and Transport on the 20th, a 59.96㎡ unit in Raemian Won Bailey, Banpo-dong, Seocho-gu, Seoul, was sold for 4.05 billion won (29th floor) on February 24th. This is the first time that the sale price of small-sized apartments nationwide has exceeded 4 billion won.
The sale price of this complex expanded steadily over approximately a month until the day it was reassigned as a land transaction approval zone (March 24th). On March 22nd, it recorded 4.3 billion won (12th floor), setting a new highest price for small-sized apartments.
Additionally, last month, a sale contract was made for a 59.96㎡ unit on the 6th floor of Raemian Prestige, Banpo-dong, Seocho-gu, and a 59.98㎡ unit on the 12th floor of Acro River Park, as well as two units of 49.98㎡ at Hanyang 1st (Yeongdong Hanyang) in Apgujeong-dong, Gangnam-gu, all at 4 billion won. In the first half of this year (January to June), there have been nine sale contracts for small-sized apartments sold in the 4 billion won range in Banpo-dong and Apgujeong-dong.
Ham Young-jin, head of the real estate research lab at Woori Bank, noted, "Since last year, the Gangnam area and Yongsan have experienced a surge in upper-class relocations, causing prices to rise significantly. This year, as it was designated as a land transaction approval zone, the entry barrier for a 84㎡ actual residence is considerable," and he explained that "small apartments under 60㎡ are being bought with the thinking that they are safe assets due to supply scarcity, whether for actual residence or for reconstruction."
Meanwhile, the increasing preference for small-sized apartments is common not only in the Gangnam area but also throughout Seoul. According to the housing price trend statistics from KB Kookmin Bank, the average sale price of small apartments (1.01398 billion won) in the 11 districts south of the Han River last month re-entered the 1 billion won range for the first time in about four years, since September (1.01132 billion won) and October (1.0059 billion won) of 2021, which were the periods of soaring real estate prices.
Yoon Ji-hae, head of research at Real Estate R114, stated, "Demand suppression policies, including financial regulations, create a balloon effect," adding that "there is a high possibility that the preference for small apartments in mid-price areas, which have relatively lower prices and easier loans, will increase in the second half of the year."