Apartment prices in Gaepo-dong in Gangnam-gu, southern Seoul, are the highest in the nation, surpassing 40 million won ($34,600) per pyeong (3.3 square meters), industry data showed Thursday.

According to real estate information provider Real Estate 114, the value of apartments in Gaepo-dong has reached 43.3 million won per 3.3 square meters, up 17 percent on-year.

The average value of overall apartments in the country has also surpassed 10 million won per pyeong for the first time.

Experts attributed the rise in apartment prices in Gaepo-dong to the region’s massive reconstruction projects to replace old apartments with new ones.

Apartment prices in Apgujeong-dong in Gangnam, which topped the nation last year, fell to third place, with a 2.6 percent on-year rise to 38.5 million won per pyeong.

Banpo-dong in Seocho-gu stood at second with 40.3 million won per pyeong, up by 5.2 percent on-year.

“The price surge of reconstructed apartments in Gaepo-dong and Banpo-dong in the past year led the rise of the value of surrounding apartments,” said Real Estate 114.

The average apartment price in Seoul was 17.8 million won per pyeong, climbing by 4.5 percent on-year, with Gangnam-gu topping the rankings with 33 million won.

In the case of Jejudo Island, the price per pyeong jumped from 6 million won to 7.7 million won, showing the steepest rise of 29.4 percent.

By Lee Hyun-jeong (rene@heraldcorp.com)