[비즈한국] As transactions for ultra-luxury apartments rise, a BizHankook investigation has confirmed that a significant number of ultra-luxury apartments worth over 10 billion won that set new record prices last year were purchased by the 2030 generation. Out of 22 apartments sold for over 10 billion won last year, at least 5 (23%) were purchased by people in their 20s and 30s, setting new record prices for the entire complex or for the specific floor area. The apartments where the 2030 generation rewrote the price records last year include Galleria Foret, Acro River Park, and Sangji Ritzville Kyle Room 2nd, which are considered synonyms for domestic ultra-luxury housing (Related article: 'Real Estate Polarization Deepens', Sales of Ultra-Luxury Apartments Over 5 Billion Won Increased 1.6 Times).
'Record Highs' at Galleria Foret, Ariparc, and Sangji Kyle Room 2 purchased by the 2030 generation
According to industry sources and real estate registries, a person named Kwak (born in 1995, age 29) purchased a 242㎡ exclusive-area apartment at Galleria Foret in Seongdong-gu, Seoul, for 10.8 billion won last October, setting a record high for the complex. Given that no mortgage was established, it appears the purchase price was paid entirely in cash. The previous record for this apartment was 10 billion won (contracted in August 2023 for the same area).
Galleria Foret is a luxury mixed-use apartment complex entering its 15th year since completion this year. It was built by Hanwha000880 in July 2011 at the northern end of Seoul Forest, consisting of two buildings up to 45 stories high (230 households). With a location overlooking both Seoul Forest and the Han River, it drew attention when supplied in 2007 with a record-high pre-sale price of 43.9 million won per 3.3㎡. Although it faced unsold inventory issues early on, the price of a 242㎡ unit soared from its record domestic high of 4.4 billion won in 2013 to 10 billion won by 2023.
In August last year, a person named Heo (born in 1986, age 38) and a person named Han (born in 1987, age 37) jointly purchased the top-floor penthouse at Acro River Park in Seocho-gu, Seoul, with an exclusive area of 235㎡ for 18 billion won, setting a new record for the complex. The previous record was 11 billion won (exclusive area 235㎡, contracted in October 2023). There is currently no mortgage set by financial institutions on this apartment either.
Acro River Park is an apartment complex rebuilt by DL E&C375500 from the old Sinbanpo 1st Apartment in August 2016. It consists of 15 buildings up to 38 stories high (1,612 households) and is located along the Han River north of Sinbanpo Subway Station, allowing for Han River views from most units. With the application of DL E&C's luxury residential brand 'Acro', it became the first in the country to exceed an average pre-sale price of 40 million won per 3.3㎡ in 2013. The 235㎡ penthouse sold this time is a type occupied by one household on the top floor, with a total of two such units built across two buildings. This is the first time a unit has been sold.
The 2030 generation also set a record price in Sangji Ritzville Kyle Room 2nd in Cheongdam-dong, Gangnam-gu, Seoul, an area considered a traditional wealthy neighborhood. A person named Jang (born in 1999, age 25) purchased a 244㎡ exclusive-area apartment at Sangji Ritzville Kyle Room 2nd for 10 billion won last May. The previous record for this apartment, built in 2006 as a single 15-household building, was 9 billion won (May 2023, same area). Given that no mortgage was established on the real estate registry, it appears that Jang also funded the entire purchase price in cash.
2030 generation also responsible for record highs in 2 out of 3 flat types at Nine One Hannam last year
Cases of the 2030 generation setting new records continued at Nine One Hannam, which recorded the highest apartment prices in Korea last year. A person named Im (born in 1989, age 36) purchased a 244㎡ unit for 12 billion won last May, while a person named Byeon (born in 1985, age 39) and a person named Lee (born in 1985, age 39) purchased a 207㎡ unit for 11 billion won last August, setting record prices for those floor plans in the complex. These are 3 billion won and 700 million won higher than the previous record prices, respectively. A 273㎡ exclusive-area unit in this complex sold for 22 billion won last July, marking the highest apartment sale price in Korea.
Nine One Hannam is an apartment complex built by DS Hannam, a granddaughter company of Daishin Securities003540, on the former site of a residential complex for U.S. Forces Korea. It consists of 9 buildings up to 9 stories high (341 households) and was completed in November 2019. The unit sizes are all large, consisting of 207㎡ (170 households), 244㎡ (93 households), and 273㎡ (78 households). At the time of the pre-sale in 2018, the developer adopted a '4-year rental then sale' method to avoid price caps, and began moving in the following year. While the conversion to sale was scheduled for 2023, the developer began early sales in March 2021 due to increased tax burdens resulting from rising corporate comprehensive real estate tax rates and government-assessed apartment prices. The conversion-to-sale price is known to be around 61 million won per 3.3㎡ on average.