[비즈한국] Amid a prolonged real estate market downturn, it has been confirmed that sales of super-luxury apartments in Korea increased by approximately 1.6 times last year compared to the previous year. The record-high apartment price, which had hovered around 10 billion won until 2023, broke a new record last year by exceeding 20 billion won. Meanwhile, the gap between the top 20% and bottom 20% of apartment prices in Korea reached a record high of 11 times, showing a deepening trend of polarization.
According to an analysis of data from the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system by BizHankook on the 30th, a total of 406 apartments were sold for over 5 billion won last year, an increase of 253 units (165%) compared to the previous year. Transactions between 5 billion and 10 billion won rose by 236 units (159%) to 384, those between 10 billion and 15 billion won increased by 14 units (350%) to 18, and those between 15 billion and 20 billion won rose by 1 unit (100%) to 2. This year, for the first time in the history of Korean apartment sales, two apartments were traded for over 20 billion won.
All apartments sold for over 5 billion won last year were located in Seoul. By region, Gangnam-gu had the most super-luxury transactions with 211, followed by Seocho-gu (131), Yongsan-gu (38), Seongdong-gu (19), Yeongdeungpo-gu (6), and Songpa-gu (1). The apartment complex with the highest number of super-luxury sales of 5 billion won or more was Banpo Xi in Seocho-gu, Seoul (34 units). When looking at transactions of 10 billion won or more, Nine One Hannam in Yongsan-gu, Seoul, recorded the highest number of super-luxury trades (5 units).
The apartment that recorded the highest sale price in 2024 is Nine One Hannam in Yongsan-gu, Seoul. Last July, a unit with a dedicated area of 273㎡ sold for 22 billion won, setting a new all-time record for apartment sale prices. The previous record was also held by a 274㎡ unit in the same complex just a month earlier, but the new price exceeded the previous one by 2 billion won. Before Nine One Hannam, the record was held by a 269㎡ unit at Parc Hannam, located nearby along the Han River. That apartment set a record in August 2023 with a sale price of 18 billion won.
Nine One Hannam is an apartment complex developed by DS Hannam, a subsidiary of Daishin Securities003540, on a former US military residential site. It was completed in November 2019, consisting of 9 buildings (341 households) with 4 basement levels and up to 9 floors above ground. At the time of the 2018 pre-sale, it began move-ins the following year using a "4-year lease followed by sale" method to avoid price caps. While it was scheduled to convert to regular ownership in 2023, the developer began early sales in March 2021 as tax burdens increased due to rising corporate comprehensive real estate tax rates and higher officially assessed property values. The conversion price was reportedly around 61 million won per 3.3㎡.
In addition, the top 10 most expensive apartment sales this year include Acro River Park in Seocho-gu, Seoul (235㎡, August, 18 billion won), Parc Hannam in Yongsan-gu, Seoul (269㎡, October, 17 billion won), Acro Seoul Forest in Seongdong-gu, Seoul (198㎡, July, 14.5 billion won), PH129 in Gangnam-gu, Seoul (274㎡, December, 13.8 billion won), Nine One Hannam in Yongsan-gu, Seoul (244㎡, April, 12 billion won), Hannam The Hill in Yongsan-gu, Seoul (240㎡, April, 12 billion won), and Hyundai 7th Complex in Apgujeong-dong, Gangnam-gu, Seoul (245㎡, March/June, 11.5 billion won each).
Among older houses built more than 20 years ago, Apgujeong Hyundai Apartment in Gangnam-gu, Seoul, sold for the highest price. Completed in 1979, a 245㎡ unit in the Apgujeong Hyundai 7th complex set a record for that complex by selling for 11.5 billion won in March and June of last year. In addition, 137 units (34% of the total) located in the Apgujeong apartment district, such as Apgujeong Hyundai 1st (196㎡, two sales in July for 9 billion won, one in April for 8.9 billion won) and Apgujeong Shin-Hyundai 11th (183㎡, November, 8.6 billion won), were among those sold for over 5 billion won this year.
The Apgujeong apartment district is currently considered the most sought-after reconstruction project in Korea. The Seoul Metropolitan Government created the Apgujeong apartment district along the Han River in Gangnam-gu during the 1970s to boost apartment supply. Subsequently, Apgujeong Hyundai (1st–14th), Miseong (1st–2nd), and Hanyang (1st–8th) apartments were densely built. Most are over 40 years old, and reconstruction is currently being pursued by dividing the adjacent complexes into 6 zones. The Hyundai 7th complex, which set the record for the highest-priced older housing last year, belongs to the largest zone, Apgujeong Zone 3. It is expected that Apgujeong Zones 2 and 3 will begin the process of selecting contractors this year.
Apartment prices are showing a trend of deepening polarization. According to KB Kookmin Bank's housing price trend survey, the "5-quintile ratio" of national apartment sales prices reached 11 times in December of last year. This is the highest level in 14 years since December 2008 (8.1 times), when relevant statistics were first compiled. The apartment sale price 5-quintile ratio is calculated by dividing the average price of the top 20% (5th quintile) by the average price of the bottom 20% (1st quintile). The higher the ratio, the greater the price gap between luxury and low-cost housing.