Contractor Selection Begins for Apgujeong Districts 4 and 5... The Era of 10 Billion Won Standard Units Arrives [Real Estate AtoZ]

Average Price per Pyeong in Apgujeong-dong Up 30% Over Two Years
Sale Price per Pyeong Expected to Surpass 300 Million Won After Redevelopment
Annual Transactions Top 300 as Association Membership Transfers Become Possible
Banpo and Daechi

The selection process for contractors for Apgujeong Districts 4 and 5, known as the "No. 1 redevelopment site in Korea," will begin this month. Apgujeong offers permanent views of the Han River and is highly favored by wealthy individuals, making it a likely battleground for high-end apartments in the future. The average apartment sale price in Apgujeong-dong has risen by about 30% compared to two years ago. Currently, the price per pyeong (3.3㎡) is around 200 million won, and there are projections that it will surpass 300 million won after redevelopment.

According to industry sources on January 23, the association for Apgujeong District 4 plans to announce the contractor selection at the end of this month. District 4 is a complex of 1,341 units, comprising Hyundai 8th and Hanyang 3rd, 4th, and 6th, and after redevelopment, it will feature up to 69 floors and 1,664 units. Although it is smaller in scale than District 2 (1,924 units) and District 3 (3,934 units), its advantage lies in the faster pace of progress.

Major construction companies are preparing to compete for orders, using "Apgujeong" as their strategic base, as it will influence future urban renewal projects. In June last year, ahead of the contractor selection for District 2, Hyundai Engineering & Construction and Samsung C&T began operating promotional centers, and DL E&C is also preparing to open a promotional center near Dosan Park. Hyundai Engineering & Construction is emphasizing its tradition and its record as the No. 1 domestic urban renewal contractor, while Samsung C&T is leveraging the "Raemian Invincible Myth" in the Gangnam area for behind-the-scenes competition. DL E&C is expected to highlight its "Acro" brand, which has driven market prices in areas like Banpo, as it enters the bidding race.

Kim Yoonsoo, head of the Apgujeong District 4 association, explained, "If more than three companies participate in the contractor selection, it will be a success in terms of popularity. To upgrade the complex, we plan to focus on larger unit sizes and secure more parking spaces."

Apgujeong District 5 is preparing to announce its contractor selection next month. District 5 is a complex of 1,232 units, consisting of Hanyang 1st and 2nd, completed in 1976, and aims to be redeveloped into up to 70 floors and 1,401 units. Samsung C&T, DL E&C, and POSCO E&C are reportedly interested.

'The Era of 10 Billion Won for 84㎡ Units Is Coming'

Industry insiders expect that after redevelopment, the era of 10 billion won for standard 84㎡ units will arrive. The project cost for District 3, the largest, is estimated at around 7 trillion won. Associations have proposed a construction cost of about 12 million won per pyeong. Actual transaction prices have exceeded 200 million won per pyeong, and are expected to approach 300 million won per pyeong after completion. Kim Jekyung, director of Toomee Real Estate Consulting, said, "Once the Apgujeong redevelopment is completed, the '10 billion won for standard units' era will open, marking a milestone in residential formats that did not exist before."

Transaction volumes in Apgujeong redevelopment complexes began to increase significantly in the first half of 2024. In speculative overheating zones, transfer of association member status is prohibited after association establishment approval. In Apgujeong redevelopment complexes, as three years have passed since association establishment, transactions involving succession of association member status became possible from the first half of 2024. According to the Ministry of Land, Infrastructure and Transport’s actual transaction price system, Apgujeong-dong apartment transactions totaled 335 in 2024 and 310 in 2025 over the past two years. Despite stricter loan regulations last year, transaction volumes did not decrease significantly.

District 3 continues to lead in sales prices for large units. In June last year, a 160㎡ Hyundai 2nd unit in District 3 was sold for 9.8 billion won, setting a record high. In District 2, a 155㎡ Shinhyundai 9th unit was sold for 9 billion won, and a 170㎡ unit was sold for 9.7 billion won in July. For units in the 30-pyeong range, prices in District 2 rose slightly faster. A 108㎡ Shinhyundai unit in District 2 was sold for 7.5 billion won in July 2025, and a 105㎡ Hyundai 13th unit in District 3 changed hands for 7.2 billion won in June of the same year.

Older Apgujeong Units Surpass New Banpo Units in Price Per Pyeong

Over the past two years, the price per pyeong for Apgujeong-dong apartments has jumped by about 30%. According to Real Estate R114, as of December last year, the average price per pyeong in Apgujeong-dong was 140.68 million won, 10 million won higher than Banpo-dong (130.37 million won). Compared to January 2024, prices in Apgujeong-dong rose by 30.28%, while Banpo-dong saw a 29.30% increase.

Even in top-tier areas of Gangnam such as Banpo, Daechi, and Cheongdam, there is a strong desire to move into Apgujeong. The head of a real estate agency near Apgujeong Station explained, "People are giving up on new builds in Banpo and moving to Apgujeong instead. There's a perception that properties built later will appreciate more and go further in value."

The head of a real estate agency near Shinhyundai commented, "The perception that the income level and social status of Apgujeong residents create a multiplier effect has become firmly established."

Apgujeong Hyundai Apartment. Photo by Hyunmin Kim kimhyun81@

As demand for safe assets strengthens, "super-polarization" is intensifying day by day. As of December last year, the gap between the average price per pyeong in Seoul (48.31 million won) and Apgujeong-dong (140.68 million won) was 2.91 times. This gap has widened from 2.69 times in January 2024. Apgujeong's influence on premium prices is spreading to neighboring areas as well. Gaepo-dong surpassed 100 million won per pyeong in October last year, and Jamwon-dong did so in August last year.

Yang Jiyeong, Senior Specialist at Shinhan Premier Pathfinder, analyzed, "Various regulations such as expansion of land transaction permit zones, tighter loan restrictions, and higher property holding taxes have actually had the effect of narrowing down the range of assets people can choose from."

Kim Hyosun, Chief Real Estate Specialist at KB Kookmin Bank, commented, "Wealthy individuals are concentrating only on a handful of locations with guaranteed value. Policy measures are actually increasing the scarcity premium. As the real estate gap could become a barrier in society, it is time to discuss balance as well."