Gangnam Ultra-Small Apartments Set Records Despite Regulations
On September 28, an ultra-small apartment in the Resents complex in Jamsil-dong, Songpa-gu, Seoul, sold for 1.95 billion KRW, setting an all-time high price for its unit size, according to Maeil Business Newspaper (v.daum.net).
Jamsil Resents 27㎡ Unit Reaches 1.95 Billion KRW
The 27㎡ property in Jamsil-dong changed hands on September 28 at 1.95 billion KRW, up 450 million KRW in just ten days from a previous transaction of 1.5 billion KRW on September 18, v.daum.net reported. Back in early June, the same layout traded at 1.4 billion KRW, putting the three-month increase at over 500 million KRW. This rapid price acceleration is not isolated to a single building. Across the Gangnam three-district area—comprising Gangnam, Seocho, and Songpa—compact apartments measuring around 40㎡ are breaking records while larger luxury units face tighter transaction volumes due to stricter loan regulations and holding tax pressures.
In Gangnam-gu, the Kachi Village complex in Suseo-dong saw its 34㎡ unit trade at 1.55 billion KRW on September 7. Yeoksam IPARK’s 28㎡ unit in Yeoksam-dong fetched 1.15 billion KRW in August. Meanwhile, Samsung Hillstate’s 40㎡ unit in Samsung-dong changed hands at 1.95 billion KRW in August, standing just 40 million KRW shy of the 1.99 billion KRW peak recorded in February.
Smaller Footprints Driven by Job Proximity and Tight Lending Rules
Compact apartments typically feature a 50㎡ or smaller floor plan with one or two rooms. While buyers could purchase wider, newly built properties in the Seoul outer ring for the same budget, market demand concentrates heavily on job proximity and established neighborhood infrastructure. Buyers are intentionally trading away square footage to secure prime locations in central districts.
Data from the Korea Real Estate Board illustrates the widening gap between unit sizes. Seoul’s real transaction price index for apartments sized at 40㎡ or below climbed to 103 in July, marking a 3.05% increase from the previous month. By comparison, mid-sized apartments ranging from over 60㎡ to 85㎡ posted a 1.46% increase over the same period, meaning ultra-small units grew at more than double the pace. Compared to 91.6 during the same timeframe last year, the index for compact homes has risen by 12.44% in a single year.
Uncertainty remains over how long borrowing curbs will restrict leveraged purchases, particularly following restrictions on home acquisitions backed by existing tenant leases enacted after the October 15 measures. Young buyers continue to absorb available supply below the 40-square-meter threshold while credit constraints persist across the broader capital area.