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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Australia’s housing affordability crisis is being fuelled by chronic undersupply, planning delays and rising development costs, as politicians continue to focus on the wrong solutions.
3 min
Australia’s housing crisis will not be solved by first-home buyer incentives or tax changes alone, with leading property figures warning governments must tackle supply constraints if affordability is to improve.
Speaking at the Kanebridge Quarterly Property Leadership Summit in Sydney last week, expert project marketing specialist Sam Elbanna, property investor and fund manager Paul Miron and property consultant Karla McNeice said that a lack of housing supply remained the central issue facing the market.
Elbanna, Director of CPM Realty with more than 30 years’ experience in project sales, argued that successive governments had focused too heavily on stimulating demand rather than addressing the barriers preventing new housing from being delivered.
“The misconception is that politicians think the way to solve the housing crisis is to drive demand,” he said.
“The reality is that’s not the way. This is a supply-side problem, and it needs to be solved on the supply side.”
Drawing on his experience in project sales, Elbanna said policies designed to help first-home buyers often had unintended consequences, pointing to previous grants that ultimately flowed through to higher property prices.
Instead, he said developers were facing increasing red tape, approval delays and rising costs, which were discouraging new housing supply.
“In the absence of stock, demand exceeds supply,” he said.
Miron, a Co-Founder and Fund Manager of Msquared Capital, said the housing debate had become overly focused on tax policy while overlooking broader structural issues.
He argued that affordability challenges stemmed from a combination of factors, including planning constraints, supply shortages, migration levels and interest rates.
“No-one can be 100 per cent certain on the real reason for property prices is going up,” he said.
“The reason why property prices are higher is a combination of interest rates, lack of supply, migration, vacancy rates and maybe taxes play a role.”
Miron was critical of recent federal housing policy changes, warning they could reduce the number of new homes being built and further constrain supply that was even highlighted in the budget.
He also highlighted the importance of the property sector to the broader economy, noting that residential real estate and related industries employed more than one million Australians.
McNeice, who advises developers on sales strategy and market intelligence, said understanding buyers had become increasingly important as affordability pressures intensified.
While affordability remained a major consideration, she said today’s buyers were focused on value rather than simply price.
“People are looking for value for money,” she said.
She said buyers were increasingly evaluating factors such as transport connections, walkability, nearby amenities and flexible living spaces that could accommodate changing family needs.
“What infrastructure is going on? Can I walk to the shops? Can I meet people at the local cafe?” she said.
The panel also discussed the mounting pressures facing developers, with Elbanna arguing that many projects become financially unviable from the moment a site is purchased.
“The viability of a development happens at the moment the site is bought,” he said.
He said rising construction costs, higher interest rates and overly optimistic feasibility assumptions had left some developers exposed as market conditions changed.
While acknowledging the growing number of smaller and first-time developers entering the market, Elbanna said property development required expertise across finance, construction, marketing and legal disciplines.
“It is actually a business that requires a level of expertise,” he said.
Looking ahead, the panel agreed opportunities remained in the market despite current challenges.
Miron said property should continue to be viewed as a long-term investment and cautioned against trying to time short-term market movements.
McNeice said success would increasingly depend on identifying projects that genuinely met changing buyer expectations.
Elbanna said affordable housing remained achievable, but developers needed to deliver more than just homes.
“We can provide affordable housing in this country,” he said.
“But we’ve got to wrap that affordable housing with the things that people want.”
As Australia’s housing affordability debate intensifies, the panellists agreed on one point: without a meaningful increase in housing supply, demand-side measures alone are unlikely to solve the nation’s property challenges.
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