30% of Apartments in Gangnam and Seocho Surpass Previous Highs... "Clear Polarization by Region"

More than 30% of apartment sales in Gangnam-gu and Seocho-gu, Seoul, this year were traded at prices higher than the previous highest prices.

According to real estate platform Zigbang on the 10th, among the 5,983 apartment transactions in Seoul from January to February, 46.1% of the sales prices were at least 90% of the highest prices recorded from 2006 to last year.

In particular, in Gangnam-gu (39%) and Seocho-gu (34%), the proportion of sales that surpassed the previous highest prices exceeded 30%, highlighting a strong upward price trend. For example, the Raemian One Bailey apartment in Banpo-dong with a floor area of 116.92㎡ was previously priced at 6.2 billion KRW but was traded last month at 7.1 billion KRW.

Zigbang attributed this phenomenon to sustained demand centered on newly built complexes and luxury apartments in the Gangnam area, which is highly preferred for its school districts, infrastructure, and transportation. Additionally, preference for royal units with views of the Han River and scarce luxury housing has become more pronounced, leading to strong price performance centered on these complexes.

On the other hand, Nowon-gu (10%), Dobong-gu (13%), Gangbuk-gu (15%), Geumcheon-gu (15%), Gwanak-gu (16%), and Seongbuk-gu (18%) showed relatively low proportions of sales at prices above 90% of the previous highest prices.

A Zigbang official explained, "Since the announcement of the lifting of land transaction permission areas, the upward trend in the Gangnam area has become more pronounced, and despite the announcement of a base interest rate cut, the market still shows a localized preference."

He added, "In popular areas like Gangnam, demand is concentrated and continuously driving price increases. Meanwhile, peripheral areas remain sluggish in transactions, and regional polarization is becoming more evident."