A Han River-view apartment in Heukseok-dong, Dongjak-gu, has traded at a price exceeding that of new apartment complexes in Seoul's Gangnam district, highlighting the growing premium attached to river views. Observers say Heukseok New Town, where redevelopment is actively underway, is positioning itself as a sought-after residential area on the strength of its proximity to Gangnam and Han River views.
According to the Ministry of Land, Infrastructure and Transport's real estate transaction disclosure system on Tuesday, a 113-square-meter unit at 'Acro River Hime' in Heukseok-dong, Dongjak-gu, Seoul, sold for 4.87 billion won on the 22nd of last month. The unit, located on the 10th floor of Building 105, sits in the No. 1 line where every room offers a Han River view, earning it the designation of "royal building, royal unit."
The transaction has drawn attention for surpassing the price of new complexes in Gangnam. A 114-square-meter unit at 'Gaepo Xi Presidence' in Gaepo-dong, Gangnam-gu, Seoul, sold for 4.78 billion won on the 27th of last month.
The price increase is also unusual compared with the previous transaction. A 4th-floor unit of the same size traded for 3.2 billion won just a month earlier. That unit, with a townhouse-style structure, reportedly offered only a partial Han River view. The difference in structure and view created a price gap of more than 1.6 billion won.
"This transaction involves the most preferred unit in the entire complex," the head of A Real Estate Agency within the complex said. "Every room offers a Han River view, and there are only 20 such units that were originally allocated to association members, so transactions are rare." He added, "Compared with other 113-square-meter Han River-view units currently on the market, the price per 3.3 square meters is at a similar level, so it would be hard to say the price is excessive."
Asking prices for units on the market also show differences depending on whether they offer a Han River view. According to Naver Real Estate, asking prices for 84-square-meter units in the complex range from 2.95 billion won to 3.8 billion won. Both units listed at the highest price of 3.8 billion won offer Han River views.
Analysts say the subscription success of nearby redevelopment complexes also contributed to the price increase. The 'Summit The Hill' in Heukseok District 11, which held first-priority subscription last month, recorded an average competition ratio of 32.51 to 1 even though the maximum sale price for an 84-square-meter unit reached 2.978 billion won, approaching 3 billion won. "Sale prices function as a floor for existing market prices, so the success of high-priced subscriptions has also affected price increases at surrounding complexes," said Yoon Su-min, real estate specialist at NH NongHyup Bank.
The Han River view premium appears to be growing over time. "In the early days after move-in, the price gap based on whether an 84-square-meter unit had a Han River view was around 100 million to 200 million won, but recently the gap has widened to 700 million to 800 million won," said the head of B Real Estate Agency in Heukseok-dong.
The Han River view premium is also reflected in officially assessed prices. Within the same complex and building, mid- to small-sized units with Han River views have shown higher official prices than mid- to large-sized units without river views. According to the Korea Real Estate Board's official price disclosure service, the official price of Unit 301 in Building 105 at Acro River Hime (113 square meters) is 2.17 billion won. By contrast, the official price of Unit 802 in the same building, an 84-square-meter unit, is 2.335 billion won, which is higher. Although smaller in area, the unit's location on a floor with Han River views appears to be reflected in the price.
Experts caution, however, that price increases cannot be explained by Han River views alone. "The combination of a new complex with strong access to Gangnam and the scarcity of a Han River view drove up the price," Yoon said. "But market variables such as the possibility of tighter regulations on high-priced apartments need to be watched continuously going forward."
The status of Heukseok New Town is expected to rise further as redevelopment projects progress. 'The H Kentro Nine' in Heukseok District 9 broke ground in April last year. Heukseok District 2, which is being pursued through public redevelopment, received conditional approval of its integrated review plan on the 28th of last month. "Dongjak-gu has so far been undervalued relative to its location adjacent to Gangnam, but if Heukseok New Town is completed as a large new complex, the addition of the Han River view premium gives it significant room for further price gains," said Kim Je-kyung, head of Toomi Real Estate Consulting.
