Transactions of expensive houses surge sevenfold

The transaction volume of houses valued at 3 billion ($2.63 million) or more surged by seven times in just three years, data showed Sunday.

Last year, 229 deals involving high-end real estate were posted on Onnara, a state-run web portal devoted to the real estate market, according to data compiled by the private market watcher Budongsan Info. The figure stood at 30 in 2013 and 123 in 2015. 

Out of the 229 deals, which all took place in Seoul, more than half of them, or 117, were in Yongsan-gu in central Seoul. Other upscale districts in southern Seoul, such as Gangnam-gu and Seocho-gu, followed with 69 and 27 deals, respectively.

Of the total, 112 units traded during the period belonged to a single luxury residential complex, Hannam The Hill, located in Hannam-dong, Yongsan-gu. The most expensive among the 112 was a 244.75-square-meter unit sold at 8.2 billion won.

The brisk trade in upscale assets, which contrasts to the slower nationwide real estate market, is likely to continue this year.

A supply of 280 units in a luxury residential bloc in Seongdong-gu, eastern Seoul, will be offered at about 50 million won per 3.3 square meters, starting May.

By November 2018, the reconstruction of Hyosung Villa, home to many business executives and celebrities in Cheongdam-dong, Gangnam-gu, is scheduled to be completed. A total of 35 units of the residential area will be traded, with the highest price at 10 billion won.

Real estate experts said that demand for such expensive houses has risen in recent years, but they are not suitable for investment purposes.

“High-priced residences are becoming more common these days as the reconstructed apartment prices in southern Seoul skyrocket. … Such houses, however, come with high acquisition tax with low liquidity,” Park Won-gap, the head researcher for real estate at KB Kookmin Bank, told Yonhap News Agency.

By Son Ji-hyoung (consnow@heraldcorp.com)