"Gangnam Apartments Laughing at Regulations"... Banpo One Bailey 7.2 Billion, Daechi Mido 4.4 Billion

[Financial News] Despite the government's strong loan regulations, record prices are consistently being set in high-priced apartments throughout the Gangnam area. The analysis that core apartments in Gangnam will not be significantly impacted by the loan regulations is proving accurate.
According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 14th, a Raemian One Bailey exclusive area of 84㎡ was traded for 7.2 billion won on the 27th of last month. This is a rise of 200 million won in just three months since the same area was traded for 7 billion won in March. Compared to the same area being traded for 6 billion won last August, it has risen by 1.2 billion won in a year.
The price per 3.3㎡ for this transaction is about 211.76 million won. It is a record high based on the national average. This complex first recorded a transaction of 200 million won per 3.3㎡ based on the national average last March and has now made a second case of surpassing 200 million won. Previously, in November last year, an exclusive 133㎡ was traded for 10.6 billion won, opening the era of 200 million won per 3.3㎡.
According to the industry, the property traded this time is a rare item with a 'panoramic Han River view', with a significant portion of the price reflecting the view premium. Currently, the asking price for similar properties in the same building has risen to as high as 8.5 billion won.
In particular, the highest price transaction of Raemian One Bailey took place on June 27, the day the government introduced strong regulations aimed at managing household debt, including a limit of 600 million won on mortgage loans and a requirement to report moving in within six months of the transaction. Although the regulations were applied immediately from the next day, record transactions continued in Gangnam, including Raemian One Bailey, earning the evaluation of being a 'different world' unaffected by regulations.
In fact, the 84㎡ exclusive area of 'Hanbo Mido Mansion 1 Complex' in Gangnam Daechi-dong set a new record price of 4.4 billion won on the 8th of last month, when the loan regulations were in effect. The same area of 'Jamsil Els' in Songpa Jamsil-dong was traded for 3.3 billion won on the 4th of this month, and the 76㎡ exclusive area of 'The H Honor Hills' in Gangnam Gaepo-dong was traded for 3.33 billion won on the 3rd of this month, at the highest price.
According to Zigbang, the highest transaction volume decreased by more than 80% in Mapo, Seongdong, and Gangdong-gu compared to the two weeks before the 6/27 loan regulations and the two weeks after. In contrast, Gangnam decreased by 63%, Seocho by 75%, and Songpa by 58%, showing that the regulatory effect is relatively weak.
Eunseon Kim, head of Zigbang Big Data Lab, advised, "These areas are designated as land transaction permission zones, so the actual contract signing takes time due to permits and reports, which should be considered as a factor for the delay in transaction timing. While the preference of demand groups with financial capacity is still maintained, we need to watch the future transaction flow as the full impact of the regulations is reflected."
going@fnnews.com Choi Ga-young Reporter