Acro River Park 84㎡ unit hits record high, up 300 million won; buying activity persists above 2.5 billion won threshold as cash-rich buyers absorb regulatory shock

A view of the Hyundai apartment complex in Apgujeong-dong, Gangnam-gu, Seoul. [Yonhap]
A view of the Hyundai apartment complex in Apgujeong-dong, Gangnam-gu, Seoul. [Yonhap]

Home prices in Seoul's Gangnam area are stirring again despite the government's sweeping real estate regulations. Loans for properties priced above 2.5 billion won ($1,650,000) are capped at 200 million won, but buyers with deep cash reserves are absorbing the regulatory shock and driving record-high transactions.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, an 84-square-meter unit at Acro River Park in Banpo-dong, Seocho-gu, sold for 6.3 billion won last month, setting a new record.

That price is 300 million won above the previous peak of 6 billion won recorded in April, and 1 billion won higher than this year's low of 5.3 billion won, also set in April. Earlier, an 84-square-meter unit at Raemian One Bailey in Banpo-dong set the highest price for a standard-size unit when it sold for 7.2 billion won in December last year.

Record highs are also emerging in Cheongdam, Apgujeong and Gaepo. A 59-square-meter unit at Sinbanpo Xi in Jamwon-dong, Seocho-gu, sold for 3.89 billion won on May 8, a new record. It was the first transaction since February last year, when the same unit type sold for 3.065 billion won — a jump of 825 million won.

A 108-square-meter unit at Hyundai 13th Complex (Buildings 208–211) in Apgujeong-dong also set a record last month, selling for 5.85 billion won. It was the first transaction since April 2024, when the unit sold for 4.15 billion won — a surge of 1.7 billion won. An 84-square-meter unit at Raemian Blestidge in Gaepo-dong also hit a record this month, trading at 3.45 billion won.

Gangnam apartment prices had been under pressure for some time as the government rolled out successive regulations. Under measures announced Oct. 15 last year, loan limits were set on a tiered basis: up to 500 million won for homes priced at 1.5 billion won or below, 400 million won for those between 1.5 billion and 2.5 billion won, and just 200 million won for properties above 2.5 billion won. Prices also pulled back in March and April as listings temporarily increased ahead of the May 9 expiration of the capital gains tax surcharge exemption for multi-home owners.

Since the surcharge resumed, available listings have tightened and asking prices have climbed, with record transactions now clustering in Gangnam's prime neighborhoods. Korea Real Estate Board data for the week of May 11 — the second week after the surcharge reinstatement took effect — showed Gangnam apartment prices rose 0.19 percent, reversing a 12-week losing streak.

Buyers of high-end properties priced above 2.5 billion won have also been relatively insulated from loan restrictions, analysts say, given their strong cash-generating capacity.

"Gangnam has long been a prime target of government regulation, so homeowners there made early decisions on whether to sell, gift or hold their properties," said Ham Young-jin, head of the real estate research lab at Woori Bank. "Current buyers are largely end-users with strong cash flow who want to own one solid, well-located home."


lucky@heraldcorp.com