Gangnam Invincibility Shaken... Heliocity, No. 1 by Market Cap, Loses 900 Billion Won

As government regulations on multi-homeowners weigh on apartment prices in the three Gangnam districts, the total market capitalization of leading apartment complexes centered on high-end developments has also turned downward. In particular, the No. 1 complex by market cap saw nearly 900 billion won erased in just three months, symbolizing the market's weakening trend.
According to KB Real Estate on the 19th, Heliocity, the nation's largest apartment complex by market capitalization, saw its value fall from 23.74 trillion won in December last year to 22.88 trillion won in March this year. That means 860 billion won disappeared in three months.
Heliocity is a large complex of 9,510 households in Songpa District, Seoul, and its market capitalization was calculated based on 8,109 households excluding rental units. Its KB price per 3.3 square meters stands at 86.69 million won. Although its price is the lowest among the top five complexes by market cap, its large scale has led to more transactions at adjusted prices, resulting in wider fluctuations.
Other major complexes are following a similar trend. Jamsil LLL's apartment complex fell from 18.78 trillion won to 18.57 trillion won over the same period, a drop of 210 billion won. The Olympic Athletes and Journalists Village Apartment Complex also declined from 18.63 trillion won to 18.38 trillion won. Raemian One Bailey likewise saw its market capitalization shrink from 17.75 trillion won to 17.47 trillion won.
Amid this trend, broader market indicators have also turned lower. The KB Leading Apartment 50 Index, which reflects price movements at major high-end apartment complexes in Seoul, stood at 132.4 in March, down from 133.3 the previous month. This is the first month-on-month decline in the KB Leading Apartment 50 Index since January 2024.
The Seoul Top 10 Apartment Complex Market Capitalization Index also fell to 134.3 from 136.3 a month earlier. This marks the first monthly decline in 21 months since July 2024. Park Won-gap, senior real estate specialist at Kookmin Bank, said, "As the top market-cap complexes are concentrated in Gangnam, more listings from owners of high-priced homes are appearing in the market amid concerns over rising holding tax burdens and possible cuts to the long-term holding special deduction." He added, "As home prices have risen, the jeonse-to-sale price ratio has fallen into the 30% range, and selling for profit-taking has also been added to the mix," explaining that "these factors are driving apartment prices in Gangnam lower."
He added, "As long as government regulations continue, this weak trend is likely to persist for some time," and noted that "the perception of so-called Gangnam invincibility may gradually weaken as well."
going@fnnews.com Choi Gayoung Reporter