The price of luxury housing
Housing for the rich and famous does not come cheap. In 2023, the actual transaction value of residences at The Penthouse Cheongdam in Gangnam and Nine One Hannam in Yongsan were recorded at over 16 billion and nine billion South Korean won, respectively. According to the Local Tax Act, luxury houses are those that are or exceed 900 million South Korean won. For the purchase of such homes, an additional eight percent is added to the existing acquisition tax rate. This implies that the final purchase price becomes significantly more expensive than your average high-quality home once it exceeds the 900-million valuation threshold. Despite the high price tag, luxury houses have not waned much in popularity over the years, with over 400 housing assets with a transaction price of over one billion South Korean won reported for capital gains tax in 2022.Divide across the river
With the population density in Seoul more than triple that of the next city, competition remains high in the capital. In the Songpa district of Seoul sits Lotte World Tower, one of the tallest buildings in the world. Its Signiel Residence offers luxury residential apartments and office spaces for rent or purchase between its 42nd and 71st floors, offering views over all of Seoul. Indeed, areas south of the river such as Gangnam, with their numerous plastic surgery clinics and high-rise buildings, contrast greatly with the narrow alleyways and traditional marketplaces frequently seen north of the river.However, areas in northern Seoul have also long been highly coveted. For example, the neighborhood of Pyeongchang-dong in Jongno district has been referred to as the "Beverly Hills of Seoul" for being the home of diplomats and celebrities alike. Residences offered here are more often large, detached houses nestled in the mountains and with easy accessibility to downtown Seoul. Despite the differences, the price points of these luxury homes tend to speak the same language. As the global popularity of Korean culture and industries continues, the real estate market in South Korea will likely continue offering new ways for the rich and famous to live in luxury.
