Gangnam reconstruction apartments hit record highs as policy continuity fuels buying

The reconstruction apartment market in Seoul's three Gangnam districts is heating up again. Complexes that rarely see transactions due to high price tags and scarce listings have logged a string of record-high deals since June. Analysts say the re-election of Seoul Mayor Oh Se-hoon has reinforced expectations of policy continuity in urban renewal projects, accelerating timelines and stoking buyer demand.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, a 183-square-meter unit at Shin Hyundai 11th Complex in Apgujeong-dong, Gangnam-gu, sold for 10.5 billion won ($7.05 million) on Monday (Building 108, 9th floor). The same unit type had fetched 12.8 billion won in a top-tier deal in December last year (Building 125, 12th floor), before prices dipped to 9 billion won in April (Building 108, 4th floor) ahead of the reimposition of the capital gains tax surcharge. The latest deal marks a return above the 10 billion won threshold in just three months.

Apgujeong Zone 2, which includes Shin Hyundai 11th Complex, is the fastest-moving of the six Apgujeong reconstruction zones. On July 2, it became the first site in the Apgujeong apartment district to clear Seoul's integrated reconstruction review.

The reconstruction plan calls for a residential complex of up to 66 stories and 2,381 units in Apgujeong Zone 2, with total construction costs projected at 2.75 trillion won. The association selected Hyundai E&C as contractor through a negotiated contract last September and signed a construction agreement in March.

A record deal also emerged in Daechi-dong, Gangnam-gu, where a 159-square-meter unit at Gaepo Woosung 2nd Complex sold for 6.2 billion won on June 24 (6th floor). That surpassed the previous record of 5.35 billion won set in 2024 (13th floor) by 850 million won, setting a new high for the first time in about two years.

A 130-square-meter unit at Sampung Apartment in Seocho-dong, Seocho-gu, also set a record, selling for 4.25 billion won on June 9 (7th floor). The previous high for that unit type was 4.1 billion won, recorded on June 27 last year (4th floor). Transactions for the unit type had dried up following the June 27 real estate measures before resuming with a record-setting deal roughly a year later.

Price gains centered on reconstruction complexes are also emerging in Songpa-gu. A 99-square-meter unit at Asia Athletes' Village in Jamsil-dong sold for 4.45 billion won on June 2 (10th floor), setting a new record high. The complex applied for Seoul's fast-track integrated planning advisory program in March last year and has been advancing through reconstruction procedures since.

Jangmi 3rd Complex, another project proceeding under the fast-track integrated planning scheme, also set a record when a 134-square-meter unit sold for 3.8 billion won on June 12 (5th floor). The complex finalized its reconstruction plan earlier this month after a revision to the maintenance plan was officially announced. The association plans to pursue an integrated review application and contractor selection simultaneously going forward.

Analysts say that as financial market volatility has increased, Gangnam reconstruction apartments — valued for their location and scarcity — are re-emerging as a refuge for wealthy investors. The re-election of the Seoul mayor, who plays a central role in urban renewal projects, has also raised expectations for policy consistency and project progress, further fueling buying activity.

Ham Young-jin, head of the real estate research lab at Woori Bank, said wealthy investors view Gangnam reconstruction apartments as assets capable of hedging against inflation. "In an environment of rising prices and interest rates and heightened financial market volatility, the reason buyers still choose Gangnam reconstruction at high prices is that location and scarcity back them up," he said.

Ham added that the Seoul Metropolitan Government has consistently signaled its intent to accelerate reconstruction and redevelopment projects through mechanisms such as the fast-track integrated planning scheme. "The market appears to have formed an expectation that, at the very least, urban renewal projects will not be halted or left adrift for an extended period," he said.