11,432 apartment sales last year in Gangnam 3-gu
2927 apartments purchased by residents of other regions
Demand for smart ones increases and’business investment’ surges
Last year, one out of four apartment sales in Gangnam 3-gu was found to be a so-called’business investment’ purchased by a foreigner. While the liquidity became abundant due to the prolonged low interest rate, the demand for the’Smart One House’ increased due to the strengthening of regulations for multi-homeowners, and foreigners began to purchase Gangnam apartments.
On the 5th, a real estate information provider, Economic Man Lab, analyzed the apartment purchasers of the Korea Real Estate Agency by residential area.
Among them, 2,927 apartments were purchased by residents of other regions, and the proportion of purchases in Gangnam 3-gu was found to be 25.6%. This is an all-time high since 2006, when real estate began to write related statistics.
Gangnam-gu has the highest percentage of apartment purchases by residents of other regions in 25 autonomous districts in Seoul. From January to November last year, 961 of the 3809 apartment sales transactions in Gangnam-gu were purchased by residents of other regions, accounting for 27.5% of the purchase by foreigners.
During the same period, out of a total of 4635 apartment sales transactions in Songpa-gu, 1224 apartments were purchased by residents of other regions, and 26.4% of apartment purchases by foreigners were surveyed.
In Seocho-gu, out of 3141 apartment sales transactions during the same period, the number of purchases by residents of other regions was 697, confirming that the proportion of apartment purchases by outsiders was 22.2%.
Along with the increase in foreigners’ purchases, the apartment prices in Gangnam 3-gu also increased significantly this year. According to the actual transaction price statistics system of the Ministry of Land, Infrastructure and Transport, 84㎡ of exclusive area for’Yeoksam Prugio’ located in Yeoksam-dong, Gangnam-gu, Seoul, was traded for 2,280 million won (2nd floor) in January of last year, but in December it was traded at 2.32 billion won. So, last year alone, it rose by 240 million won.
An area of 84 square meters dedicated to’Banpozai’ in Banpo-dong, Seocho-gu, was also traded at 2.625 billion won (20th floor) in January last year, but on December 26, 2020, it was traded at 2.8 billion (18th floor) and rose 175 million won. During the same period, 84㎡ of exclusive area for Songpa Reminis, Songpa-gu, soared 280 million won from 1.1 billion (16 stories) to 1.38 billion won.
It is analyzed that as real estate regulations include Busan, Ulsan, and Changwon beyond the metropolitan area as a part of the regulated area, commercial investment is being made to create a smart home in Gangnam, Seoul, where the investment value is high.
From January to November of last year, the share of apartment purchases in Seoul by residents in other regions also reached a record high. Among the 8,520 apartment sales transactions in Seoul from January to November 2020, 18,966 apartments were purchased by residents in other regions, accounting for 22.3% of the total, showing a record high since the statistics were prepared.
Hwang Han-sol, a research researcher at Economic Man Lab, said, “Gangnam is a key place for work, culture, education, and transportation. As the real estate market moves around the Gangnam area, the ripple effect is great and the stability is high.” “It seems that residents in other regions have started to buy apartments in Gangnam 3 district,” he explained.
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