57 Transactions in High-Price Complexes in August-September, 41 at Record Highs
Acro River Park 40-Pyeong Units Surpass 5 Billion KRW for the First Time
Preference for 'Smart Single Homes' Amid Tightening Measures on Multiple Homeowners
[Asia Economy Reporter Onyu Lim] Despite the transaction freeze in Seoul apartments, housing prices continue to soar. In particular, since last month, the proportion of record-high prices in transactions of ultra-high-end apartments priced over 3 billion KRW in the Gangnam area has reached 72%.
According to the Seoul Real Estate Information Plaza on the 15th, the number of apartment sales transactions in Seoul last month was a total of 3,362, marking the lowest point this year. Although there are about two weeks left for contract reporting deadlines, no significant changes are expected in the trend. The transaction freeze phenomenon continues this month as well. As of the 14th of this month, the number of apartment sales transactions in Seoul stood at only 204, averaging less than 15 transactions per day. This is analyzed to be the combined effect of the Bank of Korea's base rate hikes, financial authorities' loan restrictions, and the end of capital gains tax surcharges exemption for multi-homeowners.
However, even amid the transaction freeze, Seoul housing prices are rising sharply. In fact, in Seoul, not only mid-to-low-priced complexes but also high-end and ultra-high-end complexes continue to record new highs. According to Asia Economy's analysis, among 525 transactions over 1.5 billion KRW in August and September where loans were not possible, 335 transactions (64%) recorded new highs. Especially in the case of ultra-high-end complexes priced over 3 billion KRW, 41 out of 57 transactions (72%) were conducted at the highest prices, making this phenomenon more pronounced.
In Seocho-gu Banpo-dong, Acro River Park, which was the first apartment to record "100 million KRW per pyeong," a 112.99㎡ (exclusive area) unit was sold on the 11th of last month for 5 billion KRW, marking the first time a 40-pyeong unit changed hands at this price. This is 200 million KRW higher than the actual transaction price just a month ago. In Apgujeong-dong, Gangnam-gu, Hanyang 1st Complex, designated as a land transaction permission zone where sales with jeonse (long-term deposit lease) are impossible, a 91.21㎡ unit was traded at a record high of 3.4 billion KRW. This is a 900 million KRW increase compared to the last transaction in December of last year.
Experts analyze that multi-homeowners prefer a "smart single home" as a tax-saving strategy due to strengthened real estate tax policies, causing the value of ultra-high-end complexes to soar further. A real estate industry official said, "Most ultra-high-end complexes serve as landmarks in their respective areas and have symbolic significance, and due to the high asset stability and scarcity, they are highly preferred by cash-rich buyers."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
