Gangnam 3-gu Apartment Listings Surge as Prices Rise Concurrently
The real estate market in Seoul’s affluent Gangnam districts—Gangnam-gu, Seocho-gu, and Songpa-gu—is experiencing a paradoxical trend. While apartment listings are piling up, prices are simultaneously rising, driven by factors such as the potential lifting of land transaction permission zones and the growing demand for “smart houses.”
Listings Pile Up Amid Rising Prices
According to Asil, a real estate big data platform, the number of apartments for sale in the three Gangnam districts reached 22,957 as of January 26, marking a 1.6% increase from the previous month. This surge in listings is particularly notable in Gangnam-gu, where the number of Tower palace primary listings rose by 26.8% in just one month. Similarly, Gaepo-dong Wooseong 8th saw its listings nearly double, while Gaepo Presidence Xi and Daechi 2 Complex also experienced meaningful increases.
In Seocho-gu,listings in Jamwon-dong and Naegok-dong rose by 14.3% and 7.3%, respectively. Sinbanpo Central Xi’s listings skyrocketed by over 60% in a single month. Despite this influx of properties, trading activity has declined in some areas. For instance, a 97㎡ apartment in Daechi Samsung 1st was traded for 2.81 billion won on January 3, 205 million won lower than a similar unit sold in November 2023.
Weekly Price Increases Defy Expectations
Contrary to the surge in listings, apartment prices in the Gangnam districts have risen simultaneously. According to the korea Real Estate Agency,prices in Gangnam-gu,Seocho-gu,and Songpa-gu increased by 0.01%, 0.03%, and 0.09%,respectively,in the third week of January.the agency attributed this rise to increased transactions in complexes undergoing reconstruction,such as those in Jamsil and Sincheon-dong.
Land Transaction Permission Zones: A Game Changer
The potential lifting of land transaction permission zones has been a significant driver of this trend. Mayor Oh Se-hoon’s announcement on January 14 to actively review the abolition of these zones has sparked optimism among investors.Areas like cheongdam-dong, Samseong-dong, and Daechi-dong in Gangnam-gu, as well as Jamsil-dong in songpa-gu, are expected to benefit the most.
The land transaction permit zone system requires buyers to obtain permission from the district head for transactions involving properties over a certain size. Additionally, a two-year mandatory residence requirement applies, making speculative investments nearly impractical. Its potential removal could unlock new opportunities for investors.
Elite Apartments and Reconstruction Projects
Even in areas without reconstruction or redevelopment plans, elite apartments like ELS, Ricenz, and Trizium in Jamsil-dong are seeing increased demand. Properties in these complexes are being listed at prices 50 million won higher than previous levels for 84㎡ units.Active reconstruction projects in Jamsil Jugong Complex 5 and Jamsil Jangmi 1, 2, and 3 are also contributing to the positive sentiment.
The ‘Smart House’ Phenomenon
The growing demand for high-end, technologically advanced homes is another factor supporting Gangnam’s housing prices. Such as, a 133㎡ unit in Raemian One Bailey in Banpo-dong was brokered for a record-breaking 10.6 billion won in December 2024. Similarly, a 183㎡ unit in Shin Hyundai’s Apgujeong-dong complex sold for 8.6 billion won in November 2023, setting a new benchmark.
Key Trends at a Glance
| District | Listings Increase | Price increase (Jan 2025) | Notable developments |
|———————|———————–|——————————-|———————————————-|
| Gangnam-gu | 0.7% | 0.01% | Tower Palace, Gaepo-dong Wooseong 8th |
| Seocho-gu | 2.5% | 0.03% | Sinbanpo Central Xi, Jamwon-dong |
| Songpa-gu | 1.6% | 0.09% | Jamsil Jugong Complex 5, Jamsil Jangmi 1-3 |
What’s Next for Gangnam’s Real Estate Market?
As the potential lifting of land transaction permission zones looms, the Gangnam districts are poised for further activity.Investors and homebuyers alike are keeping a close eye on developments, particularly in areas like Jamsil-dong and Cheongdam-dong. With the ‘smart house’ trend gaining momentum, the demand for high-end properties is expected to remain robust.
For those considering entering the market, now may be the time to explore opportunities in these dynamic neighborhoods. Stay tuned for updates as the situation evolves.
