"Even Gangnam's wealthy are rattled" ... Down KRW 1.45 billion in an instant; 16 lower-priced deals across Seoul's three Gangnam districts in a week

Seoul's three Gangnam districts: 16 transactions at prices down 5% or more
Seongwon Daechi 3 Complex: KRW 625 million price drop
Declines spread from ultra-luxury new builds to complexes pursuing reconstruction

Recently, apartment prices have been declining, particularly in Seoul’s three Gangnam districts, and a series of transactions have closed at prices more than 5% below the previous transaction price. Price declines are spreading across newly built apartments in Banpo, complexes in Jamsil pursuing reconstruction, and mid- and small-sized apartments in Gaepo-dong and Daechi-dong, signaling a price correction in the Gangnam-area housing market as well.

According to data analyzed by Ham Youngjin, head of Woori Bank’s Real Estate Research Lab, using the Ministry of Land, Infrastructure and Transport’s real transaction price disclosure system, 16 transactions were reported between October 29 and November 4 at prices at least 5% below the previous transaction price for the same exclusive floor area in the same complex in Seoul’s three Gangnam districts. By district, Songpa-gu had the most, with eight cases, followed by Gangnam-gu with six and Seocho-gu with two.

Raemian One Bailey in Banpo-dong, Seocho-gu, Seoul. Reporter Cho Yongjun

The complex with the steepest price decline was Seongwon Daechi 3 Complex in Gaepo-dong, Gangnam-gu. A unit with an exclusive area of 49.86㎡ changed hands for KRW 1.4 billion, down 30.9% from its previous reported transaction price of KRW 2.025 billion. A unit with an exclusive area of 84.93㎡ at Hyundai Green 1 in Dogok-dong also fell by KRW 250 million (10.2%), from KRW 2.45 billion to KRW 2.2 billion.

Discounted transactions were also reported at newly built apartments in the ultra-high-end segment. A unit with an exclusive area of 84.98㎡ at Raemian One Bailey in Banpo-dong, Seocho-gu, sold for KRW 5.7 billion. That was KRW 1.45 billion (20.3%) below its previous reported transaction price of KRW 7.15 billion, the largest decline in monetary terms.

In Songpa-gu, discounted transactions were seen mainly at complexes pursuing reconstruction and major large-scale apartment complexes. A unit with an exclusive area of 76.50㎡ at Jamsil Jugong Complex 5 sold for KRW 3.727 billion, KRW 330 million (8.1%) below its previous reported transaction price of KRW 4.057 billion. A unit with an exclusive area of 84.80㎡ at Jamsil Els also fell by KRW 200 million (6.1%), from KRW 3.3 billion to KRW 3.1 billion. Transactions were also reported at Olympic Family Town in Munjeong-dong and Hanshin 1 in Garak-dong, where units changed hands at prices around 5% to 7% below their previous transaction prices.

Discounted transactions observed in the Gangnam area are spreading across the market rather than being confined to a particular neighborhood or price range. Sales below previous transaction prices took place across a variety of apartment types, from ultra-high-end new apartments in Banpo-dong to mid- and small-sized apartments in Gaepo-dong and Dogok-dong, as well as complexes pursuing reconstruction and large-scale complexes in Jamsil. There were also three cases in which prices fell by more than 10% from the previous reported transaction price.

However, experts said it is difficult to conclude that apartment prices in the Gangnam area have entered a full-fledged downturn based on only a small number of transactions reported over a short period. Ham said, "Even units of the same size in the same complex can sell at different prices depending on the floor, orientation, view and interior condition." He added, "The time between the transactions compared in this analysis ranged from as little as two days to as long as 228 days, and it should also be taken into account that the actual contract date differs from the reporting date."

The future direction of home prices in the Gangnam market is expected to depend on whether discounted transactions continue and on transaction volumes. Ham said, "If transactions at prices below the previous sale price keep recurring within the same complex and discounted sales spread to nearby complexes, signs of price adjustment could become more pronounced." However, he added, "If prices in subsequent transactions rebound after some bargain-priced units are sold, the recent discounted transactions may amount to only a temporary price adjustment."

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