Even the Stubborn Gangnam Housing Prices Have Dropped

First Decline Since November 2020
Only Listings with Reduced Asking Prices Traded

Apgujeong Hyundai Apartment_Real Estate Reference Photo / Photo by Hyunmin Kim kimhyun81@

The myth of the 'Gangnam Unbeatable' real estate market has come to an end after 15 months. Amid an unprecedented transaction freeze caused by loan regulations and interest rate hikes, only a few listings with reduced asking prices are being sold.

According to the weekly apartment price trends from the Korea Real Estate Board on the 18th, as of the survey on the 14th, apartment sale prices in Gangnam-gu fell by 0.01% compared to the previous week, marking the first decline since November 2020. Among the four Gangnam districts, Songpa-gu and Gangdong-gu also dropped by 0.02% each, while Seocho-gu remained flat at 0.00% this week. As a result, apartment sale prices fell in 22 out of the 25 autonomous districts in Seoul.

In fact, cases of apartments in major Gangnam areas selling for several hundred million won less than previous record prices are emerging one after another. According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, among major complexes in Gangnam-gu, the 145㎡ unit of I-Park in Samseong-dong was sold for 4.2 billion won (9th floor) on the 26th of last month. A unit of the same size on the 34th floor was traded for 5.6 billion won in November last year; although the floor levels differ, the apartment price dropped by 1.4 billion won in just two months. The 76㎡ unit of Eunma Apartment in Daechi-dong, one of Seoul's major reconstruction complexes, was sold for 2.49 billion won (9th floor) on the 11th of last month. Compared to the same size unit sold for 2.635 billion won (11th floor) on November 24 last year, there is a difference of about 150 million won. The 110㎡ unit of Raemian Daechi Highsten in the same neighborhood also changed hands for 2.8 billion won last month, down 200 million won from the 3 billion won transaction in August last year.

However, some argue that it is difficult to conclude that Gangnam-gu housing prices have entered a continuous downward trend. This is because only 47 sales transactions have occurred in Gangnam-gu this year?40 last month and 7 this month?and a significant number of these are presumed to be transactions between relatives or acquaintances. For example, the 84㎡ unit of The H Xi Gaepo in Irwon-dong was sold for 2.08273 billion won (29th floor) last month, which is more than 900 million won less than the record high of 2.99 billion won set in August last year. This transaction was recorded as a direct deal without a brokerage office, suggesting it is likely a gift transaction.

Additionally, the 196.21㎡ (64 pyeong, 9th floor) unit of Hyundai 1st Apartment in Apgujeong-dong, the leading reconstruction complex in Gangnam-gu, was sold for 8 billion won on the 18th of last month. This is a 1.6 billion won increase from the previous transaction of 6.4 billion won (11th floor) on March 31 last year, rising in about 10 months. Recently, with Seoul City approving the reconstruction review of Jamsil Jugong 5 Complex, there is speculation that this could act as a positive factor stimulating apartment prices in major reconstruction complexes in Seoul.

This content was produced with the assistance of AI translation services.