Last Year, 790 Apartment Transactions Over 100 Million Won per Pyeong... 30 Times More Than 3 Years Ago

Compared to 2018 (228 cases), it is 3.5 times more

[Image source=Yonhap News]

[Asia Economy Reporter Onyu Lim] Last year, as housing prices soared, the number of ultra-high-priced apartment transactions exceeding 100 million KRW per 3.3㎡ (pyeong) approached 800.

Real estate information provider Kyeongjemanlab announced on the 27th that, based on an analysis of actual transaction data from the Ministry of Land, Infrastructure and Transport, there were a total of 790 apartment transactions last year priced at over 100 million KRW per 3.3㎡, marking a 23.6% increase compared to the previous year (639 transactions). The transaction volume last year was 3.5 times higher than in 2018 (228 transactions) and more than 30 times higher than in 2017 (26 transactions).

Not only the transaction volume but also the number of apartment complexes with prices exceeding 100 million KRW per 3.3㎡ increased significantly from 3 complexes in 2017 to 68 complexes last year. The area with the most apartments priced over 100 million KRW per 3.3㎡ was Gangnam-gu in Seoul (38 complexes), followed by Seocho-gu (23 complexes) and Songpa-gu (5 complexes), collectively known as the 'Gangnam 3 Districts,' which accounted for the majority. Following the 'Gangnam 3 Districts,' the 'Mayongseong' area, known for its high-priced apartments, also had one complex each in Yongsan-gu and Seongdong-gu.

Looking at actual transactions, in March last year, a 56㎡ (exclusive area) unit in Gaepo Jugong 1 Complex in Gaepo-dong, Gangnam-gu, was sold for 3.095 billion KRW (4th floor), with a price per 3.3㎡ reaching 180 million KRW, making it the highest price per 3.3㎡ nationwide. Kyeongjemanlab explained, "This apartment is undergoing reconstruction, and its price reflects future value as residents will receive larger housing units after moving in."

Next, an 84㎡ unit in Acro River Park in Banpo-dong, Seocho-gu, was sold last month for 3.72 billion KRW (14th floor), recording a price of 144.72 million KRW per 3.3㎡, ranking as the second most expensive transaction. A 59㎡ unit in Raemian Daechi Palace in Daechi-dong, Gangnam-gu, was sold in June last year for 2.5 billion KRW (12th floor), with a price of 137.76 million KRW per 3.3㎡, and a 27㎡ unit in Resentz in Jamsil-dong, Songpa-gu, was sold in July last year for 1.15 billion KRW (5th floor), with a price of 137.34 million KRW per 3.3㎡.

There were also jeonse (long-term lease) prices exceeding 90 million KRW per 3.3㎡. A 71㎡ unit in Raemian Gaepo Luceheim in Irwon-dong, Gangnam-gu, was reported last month with a jeonse deposit of 2 billion KRW (20th floor), reaching a price of 92.23 million KRW per 3.3㎡.

Researcher Hansol Hwang of Kyeongjemanlab said, "Despite the government's strong regulations last year, the preference for a so-called 'smart single property' strengthened, and the upward trend in Seoul apartment prices did not subside, with record-high transactions continuing to emerge. If the low-interest rate environment and supply shortage sentiment persist this year, the number of ultra-high-priced apartment transactions is likely to increase."