Banpo Attracting 'Super Rich', Opening Era of Apartment Prices Reaching 10 Billion Won

Maximum Sale Price Reaches 40 Billion Won with Hyper Residential Facilities Emerging
Standing Tall as the Most Expensive Apartment Neighborhood Nationwide

The era of "100 billion won" penthouses (luxury residential spaces located on the top floors) in apartments located in Banpo-dong, Seocho-gu, Seoul has begun. The market briefly stirred earlier this year when a transaction case of a 10 billion won-level occupancy right emerged, and the asking prices for apartment penthouses in the area soared up to 20 billion won. Recently, with the launch of hyper-end residential facilities priced between 12 billion and 40 billion won, Banpo has been elevated to the neighborhood with the highest apartment prices nationwide.

Earlier this year, a 200㎡ penthouse on the 35th floor of 'Raemian One Bailey' was traded for 10 billion KRW. The photo shows the exterior view of Raemian One Bailey.
[Photo by Samsung C&T Corporation]

From 10 Billion Won Occupancy Rights to 40 Billion Won New Supply

According to the real estate industry on the 19th, the price surge is gaining momentum as old complexes in the Banpo area are being transformed into new apartments through reconstruction. In particular, Banpo apartment prices, led by 'Acro Riverpark' which was the first in Korea to reach 100 million won per 3.3㎡, have entered a full-fledged upward mode as the competing complex 'Raemian One Bailey' prepares for move-in this August.

Currently, a penthouse in Acro Riverpark Building 104 with an exclusive area of 234㎡ is listed on Naver Real Estate with asking prices ranging from 17 billion to 20 billion won. Earlier this year, an occupancy right for a 200㎡ penthouse on the 35th floor of Raemian One Bailey was traded at 10 billion won, indicating a pride battle between the two complexes over the top spot in Banpo.

In Banpo, complexes with prices exceeding 10 billion won have also appeared. On the site where the Sheraton Palace Gangnam hotel once stood, the hyper-end residential facility 'The Palace 73' is being offered with prices approaching 40 billion won. A marketing official from the complex said, "We planned the highest-grade residential facility to continue the symbolism of the site where Gangnam's first luxury hotel stayed for over 40 years, recognized as the best location in Gangnam."

Perspective view of 'The Palace 73,' a hyper-end residential facility with sale prices approaching up to 40 billion KRW.

With consecutive transactions of penthouses in the 10 billion won range, Banpo is now competing with Apgujeong-dong in Gangnam-gu for the title of 'the neighborhood with the highest apartment prices nationwide.' According to Real Estate R114 statistics, the price per 3.3㎡ by neighborhood in Seoul ranks Apgujeong-dong, Gangnam-gu first at 98.11 million won, and Banpo-dong second at 97.27 million won. However, excluding reconstruction and remodeling complexes, Banpo-dong has the highest price at 88.99 million won per 3.3㎡.

One Bailey vs. Acro Riverpark Competition, 10 Billion Won Transactions Expected to Increase

Until last year, there were no apartment transactions in Seocho-gu exceeding 10 billion won. Only two transactions exceeded 10 billion won, but these were for ultra-luxury multi-family houses, not apartments. The exclusive 273㎡ 'Traumhaus 5th' in Seocho-dong, owned by the late Samsung Chairman Lee Kun-hee, was traded for 12.0755 billion won in 2008 and recorded the highest price for multi-family housing at 18.5 billion won in September 2021.

On the other hand, in Gangnam-gu, Yongsan-gu, and Seongdong-gu, transactions of apartment penthouses exceeding 10 billion won have been made since the 2020s. First, in 2021, 'PH129' (The Penthouse Cheongdam) in Cheongdam-dong, Gangnam-gu, was traded at 11.5 billion won (exclusive 273㎡), setting a record high, and two more transactions exceeding 10 billion won followed in the same complex.

In Yongsan-gu, six transactions have been made since 2021 at the ultra-high-priced apartment 'Parc Hannam' in Hannam-dong, and two transactions at 'Hannam The Hill' in Hannam-dong. In Seongdong-gu, Seongsu-dong, the 'Acro Seoul Forest' with an exclusive area of 264㎡ was sold for 13 billion won last year, joining the 10 billion won club.

The real estate industry expects that transactions exceeding 10 billion won will become active in Banpo-dong, Seocho-gu in the future. As Raemian One Bailey begins full move-in next month, competition with Acro Riverpark will intensify, and Banpo is considered superior to Cheongdam-dong and Hannam-dong in Gangnam-gu in terms of residential environment.

In fact, Banpo-dong is well-equipped with living infrastructure such as Shinsegae Department Store Gangnam Branch, Catholic University Seoul St. Mary's Hospital, and Seoripul Park, and many prestigious schools including Wonmyeong Elementary, Gyeseong Elementary, Wonchon Middle, and Banpo Middle are located there. Numerous large-scale reconstruction projects, such as 'Banpo Jugong Complex 1,' are still underway, and Banpo is expected to further solidify its position as a wealthy residential area in Korea for the time being.

A representative of a brokerage office in Banpo-dong said, "In the past, ultra-high-priced homes in the 10 billion won range were mainly formed in Gangnam areas like Cheongdam and Apgujeong," adding, "However, recently, super-rich individuals are moving to Banpo, which is evaluated as superior in terms of location conditions such as transportation, education, and a pleasant residential environment."