'208㎡ 6.4 Billion KRW' Record High... "Price Increase Inevitable" in Apgujeong's Radical Transformation

Seoul Districts 2-5 Rapid Integrated Planning Promotion
Recovering Real Estate... Asking Prices Rise and Listings Withdrawn
Up to 50 Floors, 11,800 Waterfront-Friendly Households

"Apgujeong has survived the worst transaction freeze. With the abolition of the 35-floor height restriction and the acceleration brought by the Rapid Integrated Planning, prices have risen and listings have been withdrawn. It means not just anyone can buy here. Recently, even the design competition has become fierce, leading to some complexes hitting record prices." (Representative of real estate agency A in Apgujeong-dong, Gangnam-gu, Seoul)

'Korea's top affluent area' Apgujeong Districts 2 to 5 will be transformed into a mini new town with up to 50 floors and a total of 11,800 households. A pedestrian bridge connecting Apgujeong and Seongsu will be built among the dazzling skyline, and a cover park will be constructed over the Olympic Expressway, which currently divides the apartment complexes and the Han River waterfront.

Apgujeong Sintong Planning Proposal Skyline Rendering

When Seoul City unveiled the blueprint for the Apgujeong Rapid Integrated Planning reconstruction on the 10th, market attention focused on housing prices. With growing expectations for reconstruction, the rebound in Apgujeong housing prices is becoming clear. A representative from real estate agency B in Apgujeong explained, "Overall, the atmosphere is rapidly chasing the highest prices, and there are cases of record prices in some medium to large-sized units."

In fact, a 163㎡ unit in Hyundai 8th Complex changed hands at a record price of 4.95 billion KRW on the 23rd of last month. Although it is on the first floor, this price is 800 million KRW higher than the actual transaction price of 4.15 billion KRW in March. It surpassed the previous record high of 4.87 billion KRW set in August 2021, when the real estate market was at its peak, by 80 million KRW. A 208㎡ unit in Hanyang 4th Complex was sold on the 27th of last month for the highest price ever at 6.4 billion KRW, up 1.11 billion KRW from 5.29 billion KRW in January 2021. The representative from agency B said, "Apgujeong is a land transaction permission zone and a speculative overheating district, so there are very few available listings for transactions," adding, "As reconstruction progresses, price increases are inevitable."

Perspective View of Reconstruction in Apgujeong Districts 2 to 5

Experts believe that the recent recovery in the real estate market and the visible progress of the ultra-high-end Apgujeong reconstruction will also impact the surrounding markets. Song Seung-hyun, CEO of Urban and Economy, said, "In the real estate market, reconstruction complexes lead housing prices," and added, "With the base interest rate held steady and improvements in the subscription market, the announcement of the Apgujeong Rapid Integrated Planning has increased the possibility of housing price rises."

Yoon Ji-hae, head of the Research Team at Real Estate R114, explained, "With the relaxation of floor area ratio regulations through the 2040 Seoul Plan, profitability has increased, accelerating the pace of Apgujeong reconstruction," and added, "From the perspective that all development projects, including reconstruction, are based on value appreciation, housing prices can rise."

Seoul City has prepared a comprehensive plan to ensure consistency as a single city beyond individual complex plans, as Rapid Integrated Planning is being promoted simultaneously in Apgujeong Districts 2 to 5.

First, taking advantage of Apgujeong's fan-shaped layout, the complexes will be arranged at different heights to create a panoramic view of the Han River. Additionally, a pedestrian bridge connecting Apgujeong and Seongsu will be built to link Gangbuk and Gangnam into one living area, making the waterfront the center of daily life.

Looking at each district, District 2 will create leisure hubs such as waterfront community facilities, and District 3 will build a cover park over the Olympic Expressway to serve as a cultural hub. Near Apgujeong Station, the zoning will be upgraded from the existing Type 3 General Residential Area to a semi-residential area, allowing for buildings with diverse mixed functions such as commercial, office, and cultural uses. Districts 4 and 5 will have viewpoint deck parks to offer views toward Ttukseom.

About 1,200 public housing units will be secured, with the quality and layout of both sale units and public rental housing made identical to actively promote social mix.

To facilitate smooth progress of the maintenance project, Seoul City will open the Apgujeong Apartment District Unit Plan for public inspection until the 13th, and then proceed with legal procedures such as review by the Urban and Architecture Joint Committee, aiming to promptly finalize and announce the district unit plan.

Jo Nam-jun, Director of Seoul City Urban Planning Bureau, said, "The reconstruction of Apgujeong Apartments, once a symbol of Korea's economic development, has great significance in improving the residential environment while incorporating the city's public nature so that citizens can enjoy the Han River in their daily lives," adding, "We hope this case will lead as a world-class waterfront city model that harnesses the potential of the Han River and pioneer a leading residential culture."