Soaring Sale Prices Nationwide... Seoul Breaks 100 Million KRW per 3.3㎡ Threshold

Seoul 'Posez Hangang' 130 Million KRW Surpasses 'Maple Xi' and 'Jamsil The Sharp Ruben'
Average Sale Price per ㎡ Rises from 4.84 Million KRW to 5.68 Million KRW

Across the country, complexes are continuously breaking records for the highest local sale prices. This is a result of increased sale prices due to high interest rates and rising construction costs. From the beginning of this year until now, a total of six local governments have seen their highest apartment sale prices change.

According to Woori Bank's Asset Management Consulting Center, as of the 23rd of last month, the apartment with the highest sale price per 3.3㎡ in Seoul is 'Posez Hangang' in Gwangjang-dong, Gwangjin-gu, which was sold in January, with a price of 137.71 million KRW per 3.3㎡. This far exceeds the price of 'Maple Xi' in Jamwon-dong, Seocho-gu, supplied in the same month, which was 68.31 million KRW per 3.3㎡. The previous highest price before these two complexes was 'Jamsil The Sharp Ruben' in Songpa-gu, sold in March 2022 at 65.09 million KRW per 3.3㎡, marking a change in the highest local sale price after about two years.

The metropolitan local government that set a new record for the highest price per 3.3㎡ of apartments in the region this year.
[Data provided by Woori Bank Asset Management Consulting Center]

Busan also saw its highest sale price change in January. 'Tannenbaum 294Ⅱ' in Millak-dong, Suyeong-gu, was sold at 60.93 million KRW per 3.3㎡. This surpassed 'Tannenbaum 294Ⅰ' (36.24 million KRW per 3.3㎡), supplied in the same month, and 'The Beach Prugio Summit' in Daeyeon-dong, Nam-gu, which held the highest price until last year at 35.35 million KRW per 3.3㎡.

In Daejeon, 'Yuseong Haneulchae Hi-El' in Bongmyeong-dong, Yuseong-gu, sold in April, recorded 24.52 million KRW per 3.3㎡, which is 4.19 million KRW higher than 'Dunsan Xi I-Park' in Tanbang-dong, Seo-gu, supplied in August last year at 20.33 million KRW per 3.3㎡.

In Chungbuk, 'Hillstate Eoullim Cheongju Sajik' in Seowon-gu, Cheongju, was offered at 14.16 million KRW per 3.3㎡, 0.03 million KRW higher than 'The Sharp Ochang Prestige' in Ochang-eup, Cheongwon-gu, supplied in September last year. In Chungnam, 'Hillstate Dujeong Station' in Seobuk-gu, Cheonan, recorded 15.93 million KRW per 3.3㎡ in February, surpassing 'Boryeong Ellice Heritage' in Boryeong, which was 14.92 million KRW in December last year.

Jeonbuk Special Self-Governing Province saw 'Seosin The Sharp Vivaldi' in Wansan-gu, Jeonju, supplied in February, become the apartment with the highest sale price in the region at 15.37 million KRW per 3.3㎡. This replaced 'Eco City Hanyang Sujain D Estin' in Deokjin-gu, Jeonju, which was 13.11 million KRW in July last year. Although 'Iksan I-Park' in Busong-dong, Iksan, was sold at 13.22 million KRW in April, it did not surpass the price of 'Seosin The Sharp Vivaldi.'

As financial costs and construction raw material prices rise, apartment sale prices are also increasing. According to the Housing and Urban Guarantee Corporation (HUG)'s 'April 2024 Private Apartment Sale Price Trends,' the average sale price per unit area (㎡) of private apartments rose from about 4.84 million KRW in April last year to about 5.68 million KRW last April. The sale price index was 218.8 in April, up 17.3% from 186.5 in the same month last year.

Meanwhile, some regions have not seen changes in their highest sale prices this year due to issues such as unsold units and low new supply. The apartment with the highest sale price per 3.3㎡ in Daegu is 'Manchon Xi Rene' in Manchon-dong, Suseong-gu, supplied in April 2022, at 35.07 million KRW. Although 'Beomeo I-Park' in Beomeo-dong, Suseong-gu, was supplied in March, its sale price per 3.3㎡ was only 31.66 million KRW. According to the Ministry of Land, Infrastructure and Transport, there were 9,814 unsold units in Daegu in March when 'Beomeo I-Park' was supplied.

In Incheon, 'Songdo Xi The Star' in Songdo-dong, Yeonsu-gu, supplied in November 2021, still holds the undisputed highest sale price in the region at 26.73 million KRW per 3.3㎡. This is analyzed to be influenced by about 40,000 households moving into Incheon last year.

Additionally, Gwangju and Ulsan have not seen apartments supplied this year surpass their past highest sale prices. In Gwangju, the highest sale price per 3.3㎡ is 'PH543,' supplied in June last year, at 35.85 million KRW, and in Ulsan, it is 'Munsu-ro Artis,' supplied in December last year, at 41.52 million KRW.

Ham Young-jin, head of Woori Bank's Real Estate Research Lab, said, "Changes in the highest apartment sale prices affect the business profits of suppliers and the cost burden on buyers," and advised, "Applicants should carefully examine the appropriateness of sale prices by looking at the supply and subscription competition rates in local sale markets by region."

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