Ultra-Luxury Apartments, 'High Kick Breaking Through the Crisis'

Hannam The Hill 235㎡, 450 Million KRW Increase in Two Months
Samsung-dong Central I-Park Also Hits Record High

▲ Panoramic view of 'Hannam The Hill' complex in Hannam-dong, Yongsan-gu, Seoul

[Asia Economy Reporter Lee Chun-hee] Despite the contraction in the real estate market, ultra-luxury apartments continue their soaring trend.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 30th, a 235㎡ (exclusive area) unit in Hannam The Hill, Hannam-dong, Yongsan-gu, Seoul, changed ownership on the 11th for 5.25 billion KRW. This marks a 450 million KRW increase in just two months since it last changed hands for 4.8 billion KRW in January.

This complex was ranked as the second most expensive apartment nationwide when the official apartment price announcement on the 19th showed that a 245㎡ unit was priced at 6.568 billion KRW. Another type of the same size was traded for 8.4 billion KRW last year.

On the 3rd, a 60㎡ unit was sold for 2.06 billion KRW, which is also the highest price for the same area, surpassing the 2.02 billion KRW recorded in October last year.

This phenomenon is in stark contrast to the emergence of "quick sales" across Seoul, as the government tightened financial regulations by completely banning mortgage loans on ultra-luxury homes priced over 1.5 billion KRW in Seoul through the December 16 real estate measures last year, and the overall economy was dampened by the spread of COVID-19.

▲ Perspective view of 'Central I-Park' in Samseong-dong, Gangnam-gu, Seoul (Provided by HDC Hyundai Development Company)

The upward trend in ultra-luxury apartments is not limited to Hannam The Hill but is also seen in some complexes in the Gangnam area. An 84㎡ unit in Central I'Park, Samseong-dong, Gangnam-gu, was traded on the 26th of last month for 2.61 billion KRW, breaking the previous record. This is 340 million KRW higher than the previous record of 2.27 billion KRW set in July last year. An 85㎡ unit in Raemian Seocho STG S, Seocho-dong, Seocho-gu, also set a new record last month at 2.39 billion KRW.

Ham Young-jin, head of the Zigbang Big Data Lab, analyzed, "Record prices have appeared in some unit types of 'premium complexes' where their own league is possible," adding, "Compared to other complexes where quick sales appear, the transaction volume has decreased, but high prices are still maintained."

However, Ham noted, "The actual transaction price per 3.3㎡ in Hannam The Hill only slightly increased from 65.5 million KRW in January to 69.69 million KRW this month," and said, "Considering the variations by unit size, it is difficult to say this is a full-fledged upward trend," adding, "We need to observe future trends."