Myeong-dong cements status as super-prime real estate in Korea

A 170-square-meter plot of land in Myeong-dong, central Seoul, where South Korean beauty brand Nature Republic’s flagship store is located, has retained the title of the country’s most expensive property for 21 years straight, data showed on Wednesday.

The prime plot in the middle of the bustling shopping district popular among foreign tourists is appraised at 175.4 million won ($135,000) per square meter, up 0.7% from a year ago, according to data released by the Ministry of Land, Infrastructure and Transport.

It has remained at the top of the nation’s real estate price list since 2004.

The plot’s price bounced back this year after losing its value over the previous two years due to the COVID-19 pandemic, during which the popular tourist destination took a big hit.

The second most expensive plot is also located in Myeong-dong. The 390.4-square-meter piece of land, occupied by a branch of major local commercial bank Woori Bank, is priced at 174 million won per square meter, up 0.8% on-year.

The shopping district in central Seoul also has the third and fourth highest-priced properties in the country – 165.3 million won and 157.7 million won, respectively – tenanted by a clothing store and a local beauty brand  outlet.

Affluent Gangnam-gu and Seocho-gu respectively have the ninth and tenth most expensive commercial plots that saw single-digit percentage gains on-year.

The average land price in Myeong-dong is on a recovery course thanks to the return of tourists to Korea after the end of the pandemic, reviving the fame of the area as Seoul's busy shopping and foodie district.

MOST EXPENSIVE HOUSE IN KOREA

The data also showed that the most expensive residential building in Korea is a house owned by Lee Myung-hee, the chairwoman of Korean retail conglomerate Shinsegae Group.

The house, with a gross area of 2,861.83 square meters, boasts a hefty price tag of 28.57 billion won, up 1.9% from a year ago, and it has remained the most expensive so-called sample standard house since 2016.

It is located in Seoul’s central area of Yongsan-gu, where the country’s other top-tier business leaders own pricey houses, including the country’s third and fourth most expensive homes owned by Samsung Group and Suh Kyung-bae, the chair of the country’s biggest cosmetics and skincare maker Amorepacific, respectively.  

Every year, the Korean land ministry selects and reviews prices of sample standard houses and plots deemed as the most representative as references in setting relevant taxes.

Write to So-Hyeon Kim at alpha@hankyung.com

Sookyung Seo edited this article.