Seoul apartment deals over 2 billion won rise to 13%, Gangnam 3 districts see sharp increase

The market for Seoul apartments valued at over 2 billion won has seen a notable increase, surpassing 13% of all transactions in May, according to an analysis of real estate transaction data. This surge is particularly pronounced in the Gangnam 3 districts – Gangnam, Seocho, and Songpa – where the proportion of high-value deals has significantly grown. In Songpa, the share of transactions over 2 billion won jumped from 36.1% to 54.9%, while Seocho saw an increase from 53.6% to 71.1%, and Gangnam from 58.1% to 72.9%.

Nationwide, approximately 3.7 trillion won from the sale of stocks and bonds was channeled into housing purchases between January and April. Of this amount, about 2.4 trillion won was allocated to buying homes in Seoul. The Gangnam 3 districts received a substantial portion, with Gangnam attracting over 370 billion won, Songpa over 350 billion won, and Seocho nearly 300 billion won.

While high-end properties in prime locations like Gangnam and along the Han River are experiencing a concentration of ultra-high-value transactions, other areas are seeing increased activity in more affordable price brackets. Transactions between 300 million and 600 million won, for instance, have grown in districts like Gwangjin, Gwanak, and Dongjak. This indicates a bifurcated market, with luxury segments booming in certain areas and mid-to-lower segments showing vitality elsewhere.

In surrounding Gyeonggi Province, the proportion of transactions over 600 million won also rose. Specific areas like Yongin, driven by expectations of a semiconductor industry boom, saw a significant increase in deals above 900 million won. Seongnam, benefiting from proximity to Pangyo Techno Valley and desirability for its Seoul-adjacent lifestyle, experienced a rise in transactions over 2 billion won. The analysis suggests that future transaction patterns may shift based on changes in interest rates, loan regulations, and household debt management policies.