Apartments in Seoul. [Yonhap]
Apartments in Seoul. [Yonhap]

More than half of apartment transactions in the 1.5 billion to 2 billion won ($1.41 million) range across the Greater Seoul area set new record-high prices in July, up from less than half a year earlier, as rising home prices push record-breaking deals into price brackets dominated by end-user buyers.

Real estate platform Zigbang said Monday that its analysis of Ministry of Land, Infrastructure and Transport apartment transaction data showed the share of record-high deals among Greater Seoul apartments priced between 1.5 billion and 2 billion won climbed to 53.8% in July from 47.9% a year earlier.

The composition of transactions by price bracket also shifted, Zigbang found. The share of deals at or below 300 million won in total Greater Seoul transactions fell from 24.7% to 23.2%, while the 300 million to 600 million won bracket rose from 35.9% to 37.9%. The 600 million to 900 million won range held roughly steady, edging down from 19.7% to 19.6%.

Zigbang highlighted a rise in the share of record-high deals across the 600 million to 2 billion won range. In the 600 million to 900 million won bracket, the share jumped from 6.5% a year ago to 20.7% in July, a gain of 14.2 percentage points. The 900 million to 1.2 billion won bracket rose 20.6 percentage points, from 16.1% to 36.7%.

The 1.2 billion to 1.5 billion won bracket posted the largest increase, surging 23.6 percentage points from 23.4% to 47.0%. The 1.5 billion to 2 billion won range also rose, from 47.9% to 53.8%, giving it the highest record-high share of any price bracket in the Greater Seoul area.

By contrast, the share of record-high deals in transactions at or below 300 million won fell from 3.5% to 1.5%. The 300 million to 600 million won bracket edged up from 4.1% to 5.0%, but remained well below the levels seen in brackets above 600 million won.

"In the Greater Seoul apartment market, transaction demand is most concentrated in the 300 million to 600 million won range, but price records are being broken relatively more actively in brackets above 600 million won," a Zigbang official said.

Above 2 billion won, the share of record-high deals declined from a year earlier. The 2 billion to 2.5 billion won bracket fell from 56.2% to 44.0%, the 2.5 billion to 3 billion won bracket dropped from 71.4% to 25.8%, and the above-3 billion won bracket fell from 70.0% to 32.5%. Zigbang noted, however, that these price brackets account for a small share of overall transactions, meaning the record-high ratio can fluctuate significantly with individual deals.

A breakdown of Seoul apartment transactions by price bracket in July, provided by Zigbang.
A breakdown of Seoul apartment transactions by price bracket in July, provided by Zigbang.

In Seoul, the 1.5 billion to 2 billion won bracket had the highest record-high share among all price ranges at 48.7%. The 1.2 billion to 1.5 billion won bracket came in at 46.4%, and the 900 million to 1.2 billion won bracket at 40.4%. The 600 million to 900 million won range jumped from 9.4% a year ago to 28.1%.

By transaction price composition, the 600 million to 900 million won bracket accounted for the largest share at 27.7%, followed by the 300 million to 600 million won range at 21.7% and the 900 million to 1.2 billion won range at 16.2%.

In Seoul, price records were set more actively in the mid-range brackets favored by end-users and aspirational buyers than in the ultra-high-end segment. The record-high share in brackets above 2 billion won — 37.9% for the 2 billion to 2.5 billion won range, 26.7% for 2.5 billion to 3 billion won, and 32.1% above 3 billion won — all fell below the 48.7% recorded in the 1.5 billion to 2 billion won bracket.

In Gyeonggi Province, the share of record-high deals was relatively high in transactions at or above 900 million won. The 1.5 billion to 2 billion won bracket led all Gyeonggi price ranges at 62.8%. The record-high share in the 600 million to 900 million won bracket rose from 4.0% a year ago to 17.1%, while the 900 million to 1.2 billion won bracket climbed from 17.2% to 33.3%. The 1.2 billion to 1.5 billion won bracket stood at 48.4%.

The 300 million to 600 million won range accounted for the largest share of Gyeonggi transactions at 44.5%, followed by the sub-300 million won bracket at 25.1% and the 600 million to 900 million won range at 17.8%. While transactions were concentrated in brackets below 600 million won, record-breaking deals were relatively more active at 900 million won and above.

"The 1.5 billion to 2 billion won bracket accounted for only 1.8% of transactions, but deals in that range have consistently broken previous price records, keeping the record-high share elevated," a Zigbang official said.

In Incheon, transaction prices shifted somewhat higher, but record-breaking deals were less active than in Seoul or Gyeonggi Province. Apartments at or below 300 million won made up 47.9% of transactions, and the 300 million to 600 million won bracket accounted for 42.2%, meaning sub-600 million won deals still represent 90% of the market and remain the core of end-user demand. Record-high shares were 1.9% for the sub-300 million won bracket, 1.8% for the 300 million to 600 million won range, and 3.5% for the 600 million to 900 million won range.


hope@heraldcorp.com