Acro River Park in Banpo-dong, Seocho-gu, Seoul’s most expensive apartment complex that opened the ‘era of 100 million won per pyeong’ for the first time. A total of three transactions were made in May and June this year for the exclusive area of 84㎡ of this apartment. However, even with the same equilibrium, the transaction price widened by up to 600 million won. According to the actual transaction price disclosure system of the Ministry of Land, Infrastructure and Transport on the 4th, on May 9th, the 16th floor of Building 104 of this apartment was traded for 3.98 billion won. However, the 17th floor of Building 112, which was contracted a day later, was 3.38 billion won. Then, on the 5th of last month, the 9th floor of Building 105 changed hands for 3.68 billion won. The price of an apartment of the same size dropped by 600 million won in one day, but rose by 300 million won a month later.
Nearby real estate agents explain that the sales price soared at the same time because of the ‘right to view the Han River’. Buildings 104 and 105, which were traded at high prices, are adjacent to the Han River, but Building 112, which recorded the lowest price this year, is located behind the Han River. Earlier this year, the house sold for the highest price of 4.66 billion won in this apartment area is also located along the Han River (Building 106). ‘Han River View’ is creating a price difference of hundreds of millions of won even in the same complex.
The latest issue of the Journal of the Korean Real Estate Association, ‘Research on Real Estate’, also empirically analyzed the ‘analysis of the influence of the Han River view on apartment prices’. As a result of examining the actual transaction price of 356 Acro River Park properties traded from January 2017 to the end of June 2022, it was found that the actual transaction price increased by 0.5% for every 1% point increase in the view rate of the Han River. In particular, it was revealed that the view of the Han River was divided into 5 sections, and that the 5 sections with a full view had a 13.4% higher impact on the actual transaction price than the 1 section where the Han River was not visible at all. The Han River view rate refers to the ratio of views of the Han River and was measured through 3D simulation analysis.
The latest issue explained that 30.76% of the households surveyed had the highest view of the Han River, and the actual transaction price was 5,032,000 won higher per 1㎡ of dedicated area than those with no view of the Han River. In the case of the exclusive 84.99㎡, the maximum price difference reached 422.69 million won.
The price difference due to the view of the Han River is also reflected in the official price. Line 1 of 101 buildings with an exclusive area of 124.02㎡ for Raemiancellitus in Ichon-dong, Yongsan-gu, Seoul, facing the Han River, boasts an outstanding view of the Han River토토사이트. The official price of the area in this neighborhood is 2.438 billion won for the low-rise and 3.125 billion won for the high-rise. On the other hand, the same area in 103-dong, where the view of the Han River is difficult , shows an official price of 2.076 billion to 2.748 billion won. Even in the same area, the official price difference is up to 1 billion won.
The study that analyzed the relationship between the right of view and the price is not limited to the view of the Han River. According to a Changwon National University doctoral dissertation, ‘Comparative Study on the Value of View Rights between Inland and Coastal Cities’ published in 2016, river and mountain view rights in Seoul, an inland city, affect transaction prices by 18.19% and 11.89%, respectively. In Busan, which is located on the coast, it was analyzed that the sea view right was 22.66%, far ahead of the mountain (10.49%) and river (8.21%) right.
However, the riverside of the Han River did not have a high value from the beginning. “In the past, I didn’t really like apartments along the Han River,” said a real estate agent operating in Sinbanpo 2nd Shopping Mall in Banpo-dong, Seocho-gu, located along the Han River. There are a lot of factors that give pleasure, but rather, the prices of the back complexes that are somewhat far from the Han River are high,” he explained.
Park Hap-soo, an adjunct professor at the Graduate School of Real Estate at Konkuk University, said, “In the case of apartments built along the Han River, such as Apgujeong, which are built with a focus on the south, the view of the Han River was not directly reflected in the design. While reflecting it on the project, the value of the view of the Han River began to be maximized.” He added, “With the rise of high-rise buildings, the impact of noise and smoke has also been relatively reduced.” An executive from a construction company said, “In the case of apartment reconstruction along the Han River, the key will be how many Han River views can be secured.”
Experts order to meticulously consider the right of view when choosing a condominium for sale. Kwon Il, head of the Real Estate Info Research Team, said, “There are cases where the sale price is different depending on whether or not the view is available when selling an apartment, but it is rare that the difference occurs by hundreds of millions of won.” It’s good to check and apply,” he said.