Banpo Xi 84㎡ in the 2 Billion KRW Range... After 1 Year and 8 Months
Banpo Jugong 1, Down Up to 1.2 Billion KRW Compared to Last Year
[Asia Economy Reporter Noh Kyung-jo] Although Seoul apartment prices have been narrowing their decline this year, the 'Banpo' complexes, representative affluent neighborhoods in the Gangnam area, continue to experience falling transactions since the beginning of the year. Some places have dropped by more than 1 billion KRW in 8 months. However, experts emphasize that the focus should be on the occurrence of transactions rather than price declines.
According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 9th, Banpo Xi with an exclusive area of 84.984㎡ changed hands for 2.84 billion KRW on the 19th of last month. Compared to the highest price last May (3.9 billion KRW), it has fallen by more than 1 billion KRW. The 84㎡ exclusive type trading in the 2 billion KRW range is the first time in 1 year and 8 months since May 2021 (2 billion KRW).
Banpo Jugong 1 Complex also saw prices fall to levels from 2 years ago. Transactions in January this year include ▲106.26㎡ exclusive at 4.3 billion KRW ▲107.47㎡ exclusive at 4.9 billion KRW ▲140.33㎡ exclusive at 5.45 billion KRW. Among these, the 140.33㎡ unit dropped by more than 1.2 billion KRW compared to last year's actual transaction price, and the other two transactions also showed differences of up to about 1 billion KRW.
This apartment is located along the Han River and is considered the largest redevelopment project. The redevelopment is underway divided into 1st to 4th districts. 'The H Clast' is being built in the 1st, 2nd, and 4th districts, and 'Prestige by Raemian' is located in the 3rd district.
Of course, there are complexes showing a solid trend. Raemian Prestige's 84㎡ exclusive type has been traded at around 3 to 3.3 billion KRW since the beginning of this year. Considering it is still early in the year, the gap with last year (3.1 to 3.8 billion KRW) is not significant. The most recent transaction in the 2 billion KRW range was in the first quarter of 2021.
Despite the overall downward trend in housing prices last year, some unit sizes in these complexes recorded new highs, demonstrating their resilience as leading affluent neighborhood apartments. However, they could not resist the overall trend and prices have fallen belatedly. Nonetheless, from the perspective that transactions may gradually increase even after the quick sale of urgent listings, the response is positive.
Yoon Ji-hae, Research Team Leader at Real Estate R114, said, "With the government's strong will for a soft landing of the real estate market and the easing of various regulations, transactions that were at cliff levels are gradually emerging one by one. Naturally, cheaper listings will sell first, so actual transaction prices are inevitably lower than last year, and since transactions were so rare, it is difficult to say that prices have been formed by complex."
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