The high-end apartment market in Seoul has seen a decline in transaction values compared to a year ago. While transactions in key areas like Gangnam and Yongsan continue in the 10 billion won range, the trend of large transactions in the 20 billion to 30 billion won range has noticeably slowed down.
An analysis of real transaction data from the Ministry of Land, Infrastructure and Transport revealed that the highest apartment transaction this year was for a 231.2798 square meter unit at 'Aeterno Cheongdam' in Gangnam, which sold for 2.18 billion won. In contrast, the highest transaction recorded in the past year was a 273.928 square meter unit at 'Acro Seoul Forest' in Seongdong-gu, which sold for 2.9 billion won last June.
The average price of the top 10 transactions has also decreased. This year, the average price for the top 10 apartment transactions in Seoul was 1.2129 billion won, down from 1.6632 billion won from May to December last year. This represents a decrease of 450.3 million won, or 27.1%.
The frequency of transactions exceeding 10 billion won has also declined. From May 22 to the end of last year, there were 22 transactions over 10 billion won, but only five have occurred by May 21 this year. The proportion of transactions over 10 billion won has dropped from 0.046% to 0.019% during the same period.
However, some analysts suggest that the high-end market is not experiencing a complete downturn. Transactions in the 10 billion won range continue in core areas of Gangnam and Yongsan. Notable transactions this year include 'Nine One Hannam' in Yongsan, selling for between 14 billion and 15.7 billion won, 'Shinhyundai 11th' in Gangnam at 11 billion won, and 'Raemian One Pentas' in Seocho at 10 billion won.
Regionally, Gangnam has shown a significant concentration of high-value transactions. Of the 27 transactions over 10 billion won in the past year, 17 occurred in Gangnam, followed by six in Yongsan, three in Seongdong, and one in Seocho. Expanding the scope to transactions over 5 billion won, Gangnam accounted for 253 transactions, while Seocho had 150, with Yongsan and Seongdong recording 30 and 29 transactions, respectively.
In terms of specific complexes, 'Nine One Hannam' and 'Shinhyundai 11th' each had the highest number of transactions at five. 'Acro Seoul Forest' and 'Apgujeong Hyundai 6th and 2nd' each recorded three transactions. This indicates that the high-end market is primarily driven by emerging luxury complexes in the Hannam and Seongsu areas, as well as redevelopment projects in Apgujeong.
Additionally, the expiration of the temporary suspension on capital gains tax for multiple homeowners is seen as a variable affecting the market. With increased tax burdens and land transaction regulations, buyers are becoming more selective in their pricing within the high-end market.
A real estate industry official stated, "The high-end apartment market is experiencing a slowdown in transaction values rather than a complete halt. While high-value transactions continue in prime locations, the atmosphere of consecutive large transactions around 20 billion won, as seen last year, has weakened somewhat."
* This article has been translated by AI.
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