Gangnam 3-district apartment prices drop, data shows
Gangnam Housing Market Cools as Price Drops Span Luxury and Small Units
In Seoul’s core Gangnam 3-district residential market, 16 apartments sold at prices more than 5 percent below their most recent comparable transactions within a single week, according to data analyzed by etnews.com. The price adjustments affected ultra-high-end new developments, reconstruction targets, and mid-to-small apartments alike, crossing distinct price brackets and neighborhood lines.
Regional Breakdown and Sub-Market Contrasts
Song파구 recorded the highest concentration of discounted sales with 8 transactions falling past the 5 percent threshold between late October and early November. 강남구 followed with 6 such transactions, while 서초구 registered 2, based on Ministry of Land, Infrastructure and Transport real estate transaction data compiled by Woori Bank Real Estate Research Lab. The most notable transaction occurred in 서초구 Banpo-dong, where an 84.98-square-meter unit in Raemian One Bailey changed hands for 5.7 billion won. That marked a 1.45 billion won, or 20.3 percent, decline from its previous transaction price of 7.15 billion won.
Other notable contractions appeared in 재건축 complexes and smaller floor-area properties. In Gangnam’s Gaepo-dong, a 49.86-square-meter unit at Seongwon Daechi 2 Danji sold for 1.4 billion won compared to a prior 2.025 billion won, representing a 30.9 percent drop, though that specific trade occurred on the first floor. In Song파구, a 76.50-square-meter unit at Jamsil Jugong 5 Complex dropped 8.1 percent to 3.727 billion won, while a Jamsil Els unit of 84.80 square meters fell 6.1 percent to 3.1 billion won.
| Complex & Area | Previous Price | Recent Price | Change |
|---|---|---|---|
| Raemian One Bailey (84.98㎡) | 7.15 billion won | 5.70 billion won | -20.3% |
| Seongwon Daechi 2 Danji (49.86㎡) | 2.025 billion won | 1.40 billion won | -30.9% |
| Jamsil Jugong 5 Complex (76.50㎡) | 4.057 billion won | 3.727 billion won | -8.1% |
| Jamsil Els (84.80㎡) | 3.30 billion won | 3.10 billion won | -6.1% |
Stricter Mortgage Regulations Soften High-Value Property Prices
Ham Young-jin, head of the Woori Bank Real Estate Research Lab, attributed the sudden price softening to a combination of stricter mortgage lending regulations, escalating financial carrying costs for high-value homeowners, and potential property listings driven by changing tax policies.
Official index figures reflect the broader slowdown. According to the Korea Real Estate Board’s weekly price trends survey released for the week ending November 2, Gangnam-gu prices fell 0.39 percent, Seocho-gu dropped 0.37 percent, and Songpa-gu slid 0.17 percent. While Seoul’s aggregate apartment prices still posted a nominal 0.07 percent weekly gain, the citywide upward momentum has narrowed for three consecutive weeks.
Ham Young-jin noted that a one-week sample of 16 discounted transactions is insufficient to confirm a downward trend across the entirety of the Gangnam 3-district jurisdiction. Transaction volumes and subsequent contract prices in upcoming weeks will determine whether the current dip represents a short-term clearance of urgent seller inventory or the beginning of a broader market correction.