Record-high deals emerge in Banpo, Seocho and Jamsil even as weekly index shows declines

Acro River Park's 113-square-meter unit surges in 18 months

High-end buyers pay premium for niche products despite lower transaction volumes

Acro River Park apartments as seen from Banpo Bridge. [The Herald Business DB]
Acro River Park apartments as seen from Banpo Bridge. [The Herald Business DB]

Record-high transactions are emerging at sought-after complexes in Banpo, Seocho and Jamsil even as weekly statistics show apartment prices in Seoul's three Gangnam-area districts continuing to fall. While the government's real estate tax reform proposal released last month prompted sellers of high-priced homes to list at adjusted prices, prices at some key complexes have climbed back to new highs.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, a 112.93-square-meter unit at Acro River Park in Banpo-dong, Seocho-gu, Seoul sold for 7.4 billion won ($5.44 million) on Aug. 31 — a record high for that unit size.

The previous transaction for the same unit size was recorded at 6.4 billion won on March 8 last year. After roughly 18 months with no deals, the unit changed hands in a single transaction at 1 billion won above the previous sale price.

A record high also emerged in Seocho-dong, where an 84.97-square-meter unit at Raemian Leaders One sold for 4.01 billion won on Aug. 10, setting a new high for that size. Record deals continued in Songpa-gu as well. An 82-square-meter unit at Jangmi 1-cha in Sincheon-dong — widely regarded as the flagship reconstruction complex in the Jamsil area — sold for 3.475 billion won on Aug. 29, up 125 million won from the previous record of 3.35 billion won set in July, just over a month earlier.

These individual transactions stand in sharp contrast to the broader price trend across the Gangnam area. The Korea Real Estate Board's weekly apartment price index for the second week of September (as of Sept. 14) showed Gangnam-gu apartment prices down 0.36 percent from the previous week, while Seocho-gu fell 0.26 percent — both districts posting declines for six consecutive weeks. Songpa-gu also slipped 0.12 percent, marking two consecutive weeks of weakness.

Analysts say the real estate tax reform proposal announced Aug. 3 has contributed to the price correction in the Gangnam area. After the government unveiled a plan to raise the tax burden on non-owner-occupied and ultra-high-priced homes, listings in the area increased and asking prices on some units edged lower.

"Right after the tax reform proposal came out, some sellers did lower their prices and a portion of those listings were absorbed," said the head of a real estate agency in Banpo-dong. "More recently, owners of highly sought-after complexes — particularly those along the Han River or in newer buildings — have been raising their asking prices again, but transaction volumes remain low overall, so it is too early to call this a broad-based rebound."

The reporting lag on actual transactions also warrants consideration. Apartments in the three Gangnam districts fall within land transaction permit zones, meaning buyers must obtain approval from the relevant local government before completing a deal. Because time elapses between signing a contract and filing the transaction report, recently disclosed deals may not fully reflect current market conditions.

Analysts also caution against reading too much into a handful of record-high deals. The apartment price index aggregates price trends across multiple complexes and unit types, while individual transaction prices can vary widely depending on floor, orientation, view and scarcity — making it premature to interpret a few record sales as a directional shift for the Gangnam area as a whole.

"Transaction volumes have dropped sharply recently, and a downward trend is being detected across the broader market, but the high-end housing market in the Gangnam area is moving differently," said Kim Hyo-seon, a senior real estate specialist at KB Kookmin Bank. "Many of these properties are held by wealthy individuals with low reliance on loans, so distressed listings are scarce, and units with conditions buyers prefer — such as Han River views or specific floors — can still trade at high prices."

Kim added that the dynamic has shifted in recent years. "In the past, this kind of transaction was mostly seen in the luxury villa market, and apartments were widely perceived as standardized residential products," she said. "But as high-end apartments with significantly enhanced features have emerged, that has changed. For niche products where psychological preferences — views, scarcity, brand — carry strong weight beyond mere physical space, transactions at prices that diverge from general market trends are becoming more common."


quq@heraldcorp.com