Seoul's Ultra-Luxury Developments Break Loan Limits with Record Sales

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Record-High Transactions in Ultra-Luxury Complexes Continue

Despite the implementation of loan regulations by the government last June, ultra-luxury complexes in Seoul have continued to see record-high transactions. These properties, which often sell for tens or even hundreds of billions of Korean won, remain highly sought after despite regulatory efforts to curb housing price surges.

According to the Ministry of Land, Infrastructure and Transport’s Actual Transaction Price Disclosure System, the most expensive transaction in Seoul between January and October this year was a 273.928-square-meter exclusive-use unit at ‘Aro Seoul Forest’ in Seongsudong, Seongdong-gu. This property was sold for 29 billion Korean won on June 29.

The government introduced real estate measures on June 27, including a uniform loan limit reduction to a maximum of 6 billion Korean won, aimed at curbing rising housing prices. However, record-breaking transactions still occurred. After these measures, a 273.96-square-meter exclusive-use unit at ‘PH129’ in Cheongdam-dong, Gangnam-gu, was sold for 19 billion Korean won, marking the highest price for that property.

Even after additional measures implemented on October 15, which designated 12 areas in Seoul and Gyeonggi Province as land transaction permit zones and limited loan amounts to a maximum of 2 billion Korean won for homes exceeding 15 billion Korean won, record prices continued to be set. A 183.41-square-meter exclusive-use unit at ‘Shinhyundai 11th Phase’ was traded for 9.8 billion Korean won, while a 109.24-square-meter exclusive-use unit at ‘Shinhyundai 9th Phase’ was sold for 6.95 billion Korean won.

Strong Demand in the Pre-Sale Market

The pre-sale market has also shown strong demand for ultra-luxury complexes. One notable example is ‘Jamsil Rueil,’ which was supplied in September in Songpa-gu, Seoul. It was the highest-ever pre-sale price in the district, attracting 69,476 applicants for the first-round subscription. Despite an average price of 61 million Korean won per 3.3 square meters, the competition ratio reached an impressive 631.6 to 1.

This apartment complex became the one with the highest number of first-round subscription applications among Seoul’s pre-sale projects this year. The high demand highlights the continued interest in ultra-luxury properties, even amid tightening regulations.

Key Transactions and Trends

  • Aro Seoul Forest (Seongsudong): Sold for 29 billion Korean won.
  • PH129 (Cheongdam-dong): Sold for 19 billion Korean won.
  • Shinhyundai 11th Phase: Traded for 9.8 billion Korean won.
  • Shinhyundai 9th Phase: Sold for 6.95 billion Korean won.

These transactions indicate that despite government interventions, the ultra-luxury real estate market in Seoul remains robust. The continued high prices and intense competition suggest that demand for these properties is not being significantly affected by the new regulations.

Conclusion

The persistence of record-high transactions in ultra-luxury complexes in Seoul demonstrates the resilience of the high-end real estate market. Even with measures aimed at curbing price surges, these properties continue to attract significant interest and investment. The pre-sale market further underscores the strength of demand, with some projects seeing astronomical competition ratios. As the government continues to monitor and adjust its policies, it remains to be seen how long this trend will continue.

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