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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Strong consumer spending and tight supply have driven retail to the top of commercial property, but signs of pressure are starting to emerge.
2 min
Australia’s retail property sector entered 2026 as the strongest performing commercial asset class, but rising geopolitical risks and cost pressures are beginning to test its resilience, according to new research from Knight Frank.
The latest Australian Retail Review shows the sector rode a wave of consumer spending and constrained supply through 2025, delivering total returns of 9.2 per cent and driving transaction volumes up 43 per cent year-on-year to $14.4 billion.
That momentum carried into early 2026, with around $3.6 billion in deals recorded in the first quarter alone.
“Retail clearly emerged as the standout commercial property performer in 2025,” said Knight Frank Senior Economist, Research & Consulting Alistair Read.
“Improving household spending, limited new supply and stronger leasing fundamentals combined to drive better income growth and renewed investor confidence in the sector.”
Spending rebound drives retail strength
A lift in household spending has been central to the sector’s performance. Consumer spending rose 4.6 per cent year-on-year to February 2026, supported by easing inflation and improving real incomes.
That shift flowed directly into retailer performance, with average EBIT margins across major retailers rising to 8.9 per cent in the first half of 2026, their strongest level in several years.
“Stronger consumer spending was critical in restoring momentum to the retail sector,” Mr Read said.
“Retailers have generally been better able to absorb costs, rebuild margins and support sustainable rental outcomes, particularly in higher-quality centres.”
Improved trading conditions also pushed leasing spreads up 4.2 per cent in 2025, reinforcing income growth and supporting capital values.
Geopolitical tensions begin to bite
But the outlook has become more complicated. The report warns that escalating conflict in the Middle East and its impact on fuel prices, supply chains and interest rates could weigh heavily on consumer spending.
“Higher fuel prices, flow-on cost pressures across supply chains, and recent interest rate increases are collectively squeezing household budgets, and early consumer sentiment data suggests confidence is already softening,” Mr Read said.
“While household balance sheets remain generally resilient, heightened uncertainty over future costs is likely to weigh on spending — particularly in discretionary categories — in the months ahead.”
The impact is already being felt in investment activity. While the year began strongly, transaction volumes slowed in March as investors paused amid the uncertainty.
“Early indicators suggest elevated uncertainty has already begun to affect the market. While retail investment enjoyed its strongest start to a year in a decade, with nearly $3 billion transacted by the end of February, activity stalled in March, as investors took a pause amid elevated uncertainty,” Mr Read said.
Solid foundations support medium-term outlook
Despite the near-term headwinds, Knight Frank maintains that the sector’s underlying fundamentals remain strong. Limited new supply, high construction costs and population growth are expected to continue supporting rental growth over the medium term.
“Retail has entered this period of uncertainty from a position of strength,” Mr Read said.
“Supply-side constraints, population growth and improving income fundamentals remain powerful structural supports for the sector.”
The report highlights several trends shaping the year ahead, including steady yields as interest rates rise, mounting pressure on tenant margins, continued outperformance of prime centres, the growing need for logistics integration, and risks linked to underinvestment in capital expenditure.
For now, retail remains a sector with momentum, but one increasingly at the mercy of forces far beyond the shopping centre.
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