K-Pop Stars, Business Elite and Foreign Dignitaries Have Been Flocking to Korea’s Hannam-dong. Here’s Why.
The historic Seoul neighborhood is home to stately villas, international embassies and some of the city’s priciest developments.
4 min
Many are familiar with Seoul’s Gangnam district, an affluent urban neighborhood best known for its competitive academies, plastic surgery clinics and Psy’s 2012 hit “Gangnam Style” that set off the international wave of Korean cultural relevance.
But when it comes to the priciest real estate in South Korea’s capital, Gangnam is being upstaged by Hannam-dong, a historically prestigious oasis across the Han River, preferred by K-pop stars, foreign dignitaries and Korea’s political and business elite.
The centrally located neighborhood within the Yongsan-gu district is home to private stately villas, international embassies and some of the priciest developments in Seoul. That includes Hannam the Hill—the sprawling complex where the BTS members lived together during the height of their international fame—Paarc Hannam and Nine One Hannam.
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The neighborhood is named for its distinct location, nestled between the Han River and Nam mountain—a particularly auspicious site according to Feng Shui—and one that offers sweeping river views and respite from the bustle of central Seoul. It was therefore a favorite among Korean nobility during and after the Joseon period. Following the Japanese occupation in the first half of the 20th century, the Japanese military set up their official residences there, which were occupied by the U.S. military after Japan’s defeat. Today, that area is known as UN Village, a gated complex of expensive and coveted villas.
Hannam is therefore a center for expats and diplomats, and is close to foreign embassies and international schools, as well as a vibrant cultural life, with art galleries, upscale shopping and fine dining.
“Hannam-dong’s luxury market attracts buyers who value lifestyle elements such as privacy, security, cultural surroundings, and natural environment, as well as the investment potential of the property,” said Meiling Quek of Sotheby’s International Realty Korea via email.
Prices
Prices in Hannam-dong have skyrocketed since 2020 and reached new heights in 2024, according to Sotheby’s. A standard 2,500-square-foot unit at luxury developments such as UN Village or Hannam the Hill can go for KRW8 billion (US$5.5 million) to KRW10 billion (US$6.9 million), while standalone homes range from KRW2 billion to KRW5 billion, per Sotheby’s.
The most expensive units can go for much more, however. The priciest listing in Hannam the Hill is currently asking just over KRW20 billion ($14.3 million), slightly more than the record price set last year at Nine One Hannam, according to the Korea Times. That KRW20 billion sale price was double what it sold for in October 2021, less than three years earlier. Similarly, Korean trot singer Jang Yoon-jeong sold an 800-square-foot apartment for KRW12 billion in 2024, more than double the KRW5 billion she paid in 2021, per the Korea Times.
Historically, Hannam has had few high-rises and a small rental market, but that’s beginning to change. “The increasing presence of expatriates and diplomats has fueled a more active rental market, making Hannam-dong a highly desirable area for international residents,” according to Sotheby’s.
Notable Residents
Hannam attracts many celebrities, business moguls and diplomats, but the best known residents are likely its international K-pop stars, including Blackpink’s Jennie, SHINEE’s Key and EXO’s Baekhyun, as well as K-drama actor Lee Seung Gi and rapper G-Dragon. That’s on top of the fact that the seven-member boy band BTS was based there previously, and several BTS members still own homes there, including Suga and Jimin.
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Additionally, Korea’s impeached president Yoon Suk Yeol took up residence in Hannam instead of the Blue House, the official presidential office and residence, when he took office in 2022. In early January, the complex was surrounded by protesters and soldiers sent to arrest Yoon for his imposition of martial law in December, while the president remained confined inside for several days, hoping to hold out against the orders.
Lifestyle and Amenities
Celebrities are attracted to Hannam because of the privacy and security offered in the hills around Namsan Park, as well as access to the park and its views, according to Quek.
“Hannam seamlessly combines the tranquility of a secluded retreat with the vibrant energy of the city center, creating a sanctuary for individuals seeking both peacefulness and a cosmopolitan lifestyle at their doorstep,” she said.
The neighborhood is also a cultural destination that attracts young Seoulites, tourists and expats, with its high-end shops, gourmet dining, art venues and celebrity hotspots. Attractions include the Leeum Samsung Museum of Art, Namsan Park—one of the largest parks in Seoul with views from the peak of Nam mountain—and Comme de Garçon’s first store in South Korea, located at the border of Hannam and Itaewon, another neighborhood popular with tourists and foreigners.
One key benefit in Hannam is its proximity to international schools like Yongsan International School of Seoul and BIK Hannam. “[While] Gangnam boasts the country’s top academic districts, making it an ideal place for child education, Hannam-dong is close to international schools, making it popular among foreign families,” according to Sotheby’s.
Outlook
Seoul, in general, has seen its luxury prices rise drastically in the last few years. In fact, Seoul topped Knight Frank’s list of 100 global cities for price growth in 2024, with luxury properties up 18.6% over the course of the year, according to the Wealth Report released Wednesday. Prices are expected to continue to rise 60% over the next five years, per the report.
Hannam-dong is definitely among the neighborhoods fueling this growth, fueled by a wave of luxury development as well as its increasing appeal to international residents, according to Sotheby’s.
“The real estate in Hannam-dong, with its stable profitability, is regarded as a promising long-term investment,” Quek said. “Although the rapid price increases of recent years have slightly moderated, the upward trend continues.”
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The 2026 McGrath Report warns that without urgent reforms to planning, infrastructure and construction, housing affordability will continue to slip beyond reach for most Australians.
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Australia’s housing market has reached a critical juncture, with home ownership and rental affordability deteriorating to their worst levels in decades, according to the McGrath Report 2026.
The annual analysis from real estate entrepreneur John McGrath paints a sobering picture of a nation where even the “lucky country” has run out of luck — or at least, out of homes.
New borrowers are now spending half their household income servicing loans, while renters are devoting one-third of their earnings to rent.
The time needed to save a 20 per cent deposit has stretched beyond ten years, and the home price-to-income ratio has climbed to eight times. “These aren’t just statistics,” McGrath writes. “They represent real people and real pain.”
McGrath argues that the root cause of Australia’s housing crisis is not a shortage of land, but a shortage of accessibility and deliverable stock.
“Over half our population has squeezed into just three cities, creating price pressure and rising density in Sydney, Melbourne and Brisbane while vast developable land sits disconnected from essential infrastructure,” he says.
The report identifies three faltering pillars — supply, affordability and construction viability — as the drivers of instability in the current market.
Developers across the country, McGrath notes, are “unable to make the numbers work” due to labour shortages and soaring construction costs.
In many trades, shortages have doubled or tripled, and build costs have surged by more than 30 per cent, stalling thousands of projects.
Need for systemic reform
McGrath’s prescription is clear: the only real solution lies in increasing supply through systemic reform. “We need to streamline development processes, reduce approval timeframes and provide better infrastructure to free up the options and provide more choice for everyone on where they live,” he says.
The 2026 edition of the report also points to promising trends in policy and innovation. Across several states, governments are prioritising higher-density development near transport hubs and repurposing government-owned land with existing infrastructure.
Build-to-rent models are expanding, and planning reforms are gaining traction. McGrath notes that while these steps are encouraging, they must be accelerated and supported by new construction methods if Australia is to meet demand.
One of the report’s key opportunities lies in prefabrication and modular design. “Prefabricated homes can be completed in 10–12 weeks compared to 18 months for a traditional house, saving time and money for everyone involved,” McGrath says.
The report suggests that modular and 3D-printed housing could play a significant role in addressing shortages while setting a new global benchmark for speed, cost and quality in residential construction.
Intelligent homes
In a section titled Weathering the Future: The Power of Smart Design, the report emphasises that sustainable and intelligent home design is no longer aspirational but essential.
It highlights new technologies that reduce energy use, improve thermal efficiency, and make homes more resilient to climate risks.
“There’s no reason why Australia shouldn’t be a world leader in innovative design and construction — and many reasons why we should be,” McGrath writes.
Despite the challenges, the tone of the 2026 McGrath Report is one of cautious optimism. Demand is expected to stabilise at around 175,000 households per year from 2026, and construction cost growth is finally slowing. Governments are also showing a greater willingness to reform outdated planning frameworks.
McGrath concludes that the path forward requires bold decisions and collaboration between all levels of government and industry.
“Australia has the land, demand and capability,” he says. “What we need now is the will to implement supply-focused solutions that address root causes rather than symptoms.”
“Only then,” he adds, “can we turn the dream of home ownership back into something more than a dream.”
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