Breaking into the top 1% of Seoul's apartment sales market by price requires at least 4.65 billion won in transaction value, data showed. Seoul's entry price for the top 1% is about 2.5 times that of Gyeonggi Province, indicating a clear gap in the ultra-high-end housing market between the greater Seoul area and provincial regions.
An analysis of the Ministry of Land, Infrastructure and Transport's apartment transaction data by Zigbang on the 21st found that the entry line for top 1% transaction prices for Seoul apartments in the first half of this year stood at 4.64998 billion won. The top 1% entry line refers to the minimum transaction price needed to be included in the top 1% by price among apartments traded in a given area.
This is lower than the 4.98 billion won recorded in the first half of last year, but higher again compared with the 4.3 billion won in the second half of last year, when the "triple regulation" was expanded across all of Seoul.
Actual ultra-high-end transactions were completed at even higher prices. The average transaction price of Seoul's top 1% apartments in the first half of this year was surveyed at 6.3059 billion won. This was lower than the average of 6.88334 billion won in the first half of last year, but rose compared with the second-half average of 5.96843 billion won last year.
Seoul's ultra-high-end transactions were concentrated in Han River-side apartments, redevelopment complexes, and newly built luxury residential developments.
Greater Seoul Sees Diverse High-End Complexes; Provinces Center on Landmarks
The region with the next-highest top 1% entry price after Seoul was Gyeonggi. Gyeonggi Province's threshold was 1.85 billion won, remaining at about 40% of Seoul's level. Its top 1% average transaction price was 2.23468 billion won.
In Gyeonggi, high-end transactions were active in areas with excellent access to Seoul or self-sufficient functions, such as Gwacheon, Bundang and Pangyo in Seongnam, Gwanggyo in Suwon, and Dongtan in Hwaseong.
In provincial regions, Daegu was highest at 1.58 billion won, followed by Busan at 1.525 billion won. The top 1% average transaction price was 2.1896 billion won in Busan and 1.90475 billion won in Daegu.
Next, Sejong stood at 1.28 billion won, while Daejeon and Incheon were in the 1.1 billion won range. South Jeolla, Gwangju, North Chungcheong and South Gyeongsang recorded levels of 700 million to 900 million won. South Chungcheong and North Jeolla were in the 700 million won range, and Gangwon and North Gyeongsang were in the 500 million to 600 million won range, showing a large gap in the top-priced markets across regions.
Zigbang analyzed that the greater Seoul area and provincial regions also differ in how their ultra-high-end markets are formed. It explained that in the greater Seoul area, a variety of complexes form the top tier as new premium developments are added to existing high-end apartments, whereas in provincial regions, high-end transactions tend to center on landmark complexes representing each area.
"Depending on differences in market size and conditions for supplying high-end housing by region, the way the top-tier housing market is formed also appears differently," said Kim Eun-sun, head of Zigbang's Big Data Lab.
Seoul Home Prices Keep Rising; Buying Sentiment Also Highest in Nation
The strength of Seoul apartment prices is also confirmed in market indicators. According to KB Real Estate Data Hub, the average sale price of Seoul apartments as of June was 1.58311 billion won, about 2.7 times the national average of 576.89 million won.
In a survey by the Korea Real Estate Board, Seoul apartment sale prices rose 0.30% for the second consecutive week in the second week of July (as of the 13th). The upward trend was notable in Gangbuk and mid-tier areas such as Seongbuk-gu (0.49%), Guro-gu (0.44%) and Mapo-gu (0.37%), while Gangnam-gu (0.16%) and Seocho-gu (0.11%) saw relatively small gains.
Not only Seoul but also southern Gyeonggi continued its strength. Dongtan-gu in Hwaseong (0.73%), Yeongtong-gu in Suwon (0.64%), Giheung-gu in Yongin (0.59%) and Bundang-gu in Seongnam (0.42%) recorded high rates of increase. Byeongjeom-gu in Hwaseong, which avoided regulation, saw its gains widen due to the so-called "balloon effect."
Buying sentiment is also reviving. In the Korea Research Institute for Human Settlements' June consumer sentiment survey of the real estate market, the housing sales consumer sentiment index for Seoul recorded 138.0, the highest in the nation, continuing its upward trend since April. In contrast, Jeju was lowest at 77.6, while North Jeolla, North Chungcheong and Incheon saw consumer sentiment slow from the previous month.
