"Han River View Effect?" Banpo and Seongsu National Standard Apartments Hit Record Highs at 4.3 Billion Won

Apartment prices in Banpo-dong and Seongsu-dong, Seoul, which have established themselves as emerging affluent neighborhoods, are soaring. In the case of Raemian One Bailey and Trimage, the recent transactions of the standard unit size (exclusive area 84㎡) reached as high as 4.3 billion KRW, setting new record prices. The value of the Han River view is skyrocketing, and it is expected that the gap with surrounding complexes will widen further.

Panorama of 'Raemian One Bailey' in Banpo-dong, Seocho-gu, Seoul / Photo by Noh Kyung-jo

According to the Seoul Real Estate Information Plaza on the 26th, Raemian One Bailey in Banpo-dong, Seocho-gu, was sold for 4.3 billion KRW for an exclusive 84㎡ unit in September. Raemian One Bailey, a newly built complex that began occupancy at the end of August, boasts a location along the Han River. The occupancy rights were also traded at 4.59 billion KRW.

The adjacent complex, Acro River Park, also saw an exclusive 84㎡ unit change hands for 4.39 billion KRW in August. Known as 'Aripak,' it was considered the premier apartment in Banpo before Raemian One Bailey was built. This complex was also the first in the Gangnam area to open the era of an average sale price of 40 million KRW per 3.3㎡.

There is a price difference of more than 600 million KRW even between the same unit sizes in the two complexes, with the gap reportedly large depending on whether there is a Han River view. Compared to nearby older complexes such as Raemian Prestige (exclusive 84㎡ sold for 3.58 billion KRW) and Banpo Xi (exclusive 84㎡ sold for 3.3 billion KRW), the prices are about 1 billion KRW higher.

This trend is also seen in Trimage in Seongsu-dong, Seongdong-gu. Last month, an exclusive 84㎡ unit in Trimage was sold for 4.3 billion KRW, setting a new record. Known as a celebrity apartment, the sale price for an exclusive 84㎡ unit was around 1.4 billion KRW in 2008, but recently it has been on par with affluent complexes in Gangnam. It offers a Han River view and access to Seoul Forest.

Experts predict that complexes with locational advantages and added luxury will be somewhat affected by the real estate market conditions but still have room for price increases. In particular, Banpo-dong is expected to see another change in the leading apartment as the most expensive Jugong 1 complex, which has surpassed 10 million KRW per 3.3㎡, is undergoing reconstruction.

Ham Young-jin, head of the Zigbang Big Data Lab, said, "Recent inflation is also influencing the rise in real estate prices. The price trend for the standard unit size is steep, and if the conditions are new, luxurious, and affluent neighborhoods, it is possible that prices will soon exceed 5 billion KRW."