[Exclusive] "The Flagship Is Back": One Bailey Sets New Record at 7.2 Billion Won as Banpo Apartment Market Revives

Record High Set After Three Months... First New Peak Since Land Permit Zone Redesignation
Only 2 Transactions in April Amid Initial Permit Zone "Shock"
Recovery to 28 Transactions in May as Buying Activity Returns to High-End Complexes
Experts: "Clear Supply Guidelines Are More Important Than Regulation Now"

The exclusive 84-square-meter unit at Raemian One Bailey in Banpo-dong, Seocho-gu, Seoul-often referred to as the "flagship of standard apartment sizes"-was recently sold for 7.2 billion won. This marks a new record-high transaction for the complex, which had seen almost no activity after being redesignated as a Land Transaction Permit Zone. Analysts say this suggests the Banpo apartment market is regaining momentum, shaking off the impact of the permit zone redesignation.

Raemian One Bailey exterior view. Asia Economy DB.

According to multiple certified real estate agents in Seocho-gu on June 25, a Raemian One Bailey 84-square-meter unit was sold for 7.2 billion won in mid-June. This surpasses the previous record by 200 million won, which was set at 7 billion won in March, just three months earlier. It is also the first record-high transaction since Seocho-gu was redesignated as a Land Transaction Permit Zone on March 24. Based on the actual transaction price system, only about one Raemian One Bailey unit of this size has been sold since April. At that time, the sale price was 6.08 billion won, roughly 1 billion won below the previous peak. As a result, some speculated that the 7 billion won transaction might have been a case of buying at the market's peak.

This latest transaction has not yet been officially registered in the actual transaction database. However, news of this record-high deal at the "flagship apartment" is already widespread throughout Banpo-dong. Jung Byungchun, head of the Seocho-gu branch of the Korea Association of Realtors, said, "Real estate transactions involve personal information, so we can't know all the details. However, there are rumors that the buyer is a young wealthy individual." Another real estate agent in Seocho-gu explained, "I understand that the unit sold for 7.2 billion won offers a view of the Han River."

This transaction is seen as a signal of a shift in sentiment in the Banpo apartment market. The number of apartment transactions in Banpo-dong dropped sharply from 55 in January, 151 in February, and 127 in March to just two in April, immediately after the permit zone designation. It was only last month that the figure rebounded to 28, indicating the beginning of a recovery. According to real estate agents, as buyer sentiment improves, inquiries are resuming, especially for high-priced complexes.

Record-high prices are also being reported in other major complexes in Banpo. An 84-square-meter unit at Acro River Park changed hands for 5.65 billion won on the first of last month, setting a new record. This is nearly 1 billion won higher than the 4.7 billion won transaction for the same unit size in February, before the permit zone designation. Likewise, an 84-square-meter unit at Banpo Xi was sold for 4.67 billion won last month, also marking a new high.

Transaction volumes have not yet returned to previous levels. With "gap investment" (buying with a tenant in place) effectively blocked, short-term trading demand is rare, and transactions are limited to selective purchases by buyers with sufficient funds. One real estate agent commented, "The overall market is quiet, but asking prices for popular complexes continue to rise, resulting in new record-high transactions."

Experts believe that these record-high prices in the Banpo area will serve as an indicator of the market temperature in the Gangnam region for the second half of the year. Yang Jiyeong, a senior expert at Shinhan Premier Pathfinder, said, "Looking at past trends, regulations may deliver a temporary shock, but they do not fundamentally change the market trajectory. The record-high prices in Banpo reflect such expectations, and as transactions among wealthy buyers continue, the upward trend is centered on high-end complexes like One Bailey." She added, "At this point, what is needed is not more regulation, but a clear guideline on supply."