Seoul Real Estate: The Era of 100 Million Won per Pyeong
The Psychological Resistance Level of 100 Million Won per Pyeong
A symbolic milestone has been set in Seoul's real estate market. A newly built apartment in Ahyeon-dong, Mapo-gu, was traded at 100 million won per pyeong, marking the beginning of the 100 million won era even outside Gangnam's three districts.
Based on 34 pyeong (84㎡ exclusive area), that's approximately 3.4 billion won (about $2.5 million). This is becoming the new standard for newly built apartments in Seoul's prime areas.
Analyzing Mapo's New Apartments: Mapo Raemian Prugio
Location Value
- Station Area: Double subway access to Lines 2 and 5
- School District: Top-tier school district in Seoul
- Living Infrastructure: Large marts, department stores, hospitals within walking distance
- Commute Proximity: Within 30 minutes to Yeouido and Gwanghwamun
New Construction Premium
Complexes built in the 2020s boast differentiated designs compared to previous generation apartments:
- 4-Bay flat design maximizing sunlight and ventilation
- Storage spaces like large dressing rooms and pantries
- 100% underground parking + 1.5+ spaces per unit
- Community facilities (fitness, study rooms, guest houses)
- IoT home systems
The Paradox of Prime Area Appreciation Amid Regulations
Despite various government real estate regulations, why do Seoul's prime area prices continue to rise?
1. Supply Shortage
Housing supply in Seoul is structurally limited:
- Delayed new supply due to redevelopment/reconstruction regulations
- Restrictions on greenbelt release
- Extended permit approval periods
- Worsened project viability due to rising construction costs
2. Qualitative Change in Demand
- Wealthy End-user Demand: Multi-home owner regulations drive preference for single high-value homes
- Corporate Demand: Real estate corporation purchases
- Millennial Buyers: Generation leveraging maximum loans concentrating in prime areas
3. Inflation Hedge
Real estate as a physical asset is a representative hedge against inflation. Seoul's prime area real estate, with its scarcity, is particularly perceived as a defensive asset against currency depreciation.
Spreading from Gangbuk to All of Seoul
The 100 million won per pyeong era started in Gangnam and is now spreading throughout Seoul.
Price Per Pyeong Trends by District
| District | Representative Complex | Price/Pyeong (2025) |
|---|---|---|
| Gangnam-gu | Raemian One Bailey | 150M+ won |
| Seocho-gu | Acro River Park | 130M+ won |
| Yongsan-gu | Raemian Chelitus | 120M+ won |
| Mapo-gu | Mapo Raemian Prugio | 100M won |
| Seongdong-gu | Trimaje | 90M+ won |
Who's Next?
Districts likely to break 100 million won per pyeong after Mapo:
- Seongdong-gu: Ttukseom/Seongsu development news
- Gwangjin-gu: Gangnam accessibility + Han River views
- Yeongdeungpo-gu: Yeouido redevelopment expectations
Investment Implications
For End-users
- Consider Loan Regulations: Plan finances within DSR and LTV regulations
- Long-term Residence Purpose: Consider entry if planning to live 5+ years
- Location First: Scarcity of location matters more than price per pyeong
For Investors
- Regulatory Risk: Ongoing multi-home owner taxes and loan regulations
- Liquidity Consideration: High-priced homes may take longer to sell
- Consider Alternatives: Commercial real estate, REITs, overseas real estate
Points of Caution
- 100 million won per pyeong isn't the standard for all Seoul apartments
- Price differences based on location, age, and brand remain
- Possible downward pressure during interest rate hikes
Conclusion
The era of 100 million won per pyeong in Seoul real estate goes beyond simple price appreciation—it shows that the scarcity of Seoul's prime areas is being maximized. It's the combined result of metropolitan concentration, demand for quality living environments, and inflation hedge needs.
For the homeless, it's a burdensome reality, but for those who already own, it's asset value appreciation. What's important is making a cold-headed decision based on your financial situation and living plans rather than emotional judgment.
The structural characteristics of Seoul's real estate market won't change easily. In the era of 100 million won per pyeong, it's time to properly understand its meaning and develop strategies suited to your situation.