Banpo Apartment Sells for Record 12 Billion Won Amid Falling Home Prices
While home prices in Seoul's Gangnam area fell for an 11th consecutive week, an apartment in Banpo-dong, Seocho-gu sold for 12 billion won, setting an all-time record high. According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 24th, a 133.95-square-meter unit (22nd floor) at Raemian One Bailey in Banpo-dong traded for 12 billion won on the 22nd of last month, 1.45 billion won (13.7%) above the previous record of 10.55 billion won for the same layout (contracted in May). The unit commands a premium as it directly overlooks Banpo Han River Park and the Han River, making it a highly desirable building and floor. A record high was also set for the large layout in the same complex. A 116.95-square-meter unit at Raemian One Bailey changed hands for 9.4 billion won on the 21st of last month, 900 million won above its previous transaction of 8.5 billion won (contracted in July).
This trend stands in contrast to the broader weakness across the Gangnam area. According to the Korea Real Estate Board, Seocho-gu apartment prices fell 0.32% week-on-week in the third week of October, marking an 11-week slide since the announcement of the 'August 3 tax reform plan.' Gangnam-gu also dropped 0.31% over the same period, its 11th straight weekly decline.
A key reason ultra-high-end apartment transactions have stayed active is their limited exposure to lending regulations. In the Seoul metropolitan area and regulated zones, the mortgage limit for homes with an official value above 2.5 billion won is capped at 200 million won, meaning transactions for apartments in the 10-billion-won range are mostly funded in cash. Shim Hyung-seok, chief expert at law firm Joyul, said, "Ultra-high-end apartments with Han River views, prime locations, and the brand of a large complex have limited comparable listings, so their price movements can diverge from the general market trend."
Raemian One Bailey is a 2,990-unit complex completed in August 2023 through the consolidated redevelopment of Sinbanpo 3rd and Keongnam apartments, and its proximity to Express Bus Terminal Station on subway lines 3, 7, and 9 enhances the scarcity of its high-floor large units. Park Won-gap, senior real estate expert at KB Kookmin Bank, said, "For wealthy buyers who can purchase homes without loans, rare ultra-high-end properties remain attractive as investments and assets to hold."
