Analysis of a Successful 3 Billion Won Small Building Investment in Shinchon's "Food Alley" (ft. 3.5% Yield, Shinchon Station, Yonsei & Ewha Universities)
A small building located in Shinchon's "Food Alley," bustling with university culture and youthful energy around Shinchon Station (Line 2) in Seodaemun-gu, Seoul, was sold for 3.9 billion won. Like discovering a "treasure island," let's delve into the investment value and successful strategy of this building, which boasts a 3.5% yield.
Don't Miss the 3 Billion Won "Bargain Sale" Small Building in Shinchon's Food Alley!
In August 2020, the small building at 52-65 Changcheon-dong was traded for 3.9 billion won (59.25 million won per pyeong). Boasting a gross floor area of 184.13 pyeong on a site area of 65.82 pyeong, with basement 1 to ground 5 floors, this building was a "bargain sale" item sold at the same price as the bank's appraisal. Like "value shopping," the low price lowers the entry barrier for small building investment and offers opportunities for high yields.
- 3.9 Billion Won Sale: "Value" investment, high yield potential
- 59.25 Million Won Per Pyeong: "Bargain sale" price below market value
- Shinchon Food Alley: Abundant foot traffic, stable rental demand
5-Minute Walk to Shinchon Station (Line 2), "Super-Station Area" Adjacent to Hyundai Department Store
The building is conveniently located a 5-minute walk from Shinchon Station (Line 2), providing excellent public transportation access. Additionally, it is close to amenities such as the Shinchon Hyundai Department Store. The Shinchon commercial area is one of Seoul's main commercial areas, featuring diverse districts like Yonsei-ro, Shinchon Myeongmul Street, Shinchon Food Alley, and Shinchon Ewha Street. With four universities (Yonsei, Ewha, Sogang, and Hongik) nearby, there is a large youthful floating population. Like a "golden line," the Line 2 super-station area is a key factor that enhances the investment value of small buildings.
- 5-Minute Walk to Shinchon Station (Line 2): Super-station area location
- Diverse Commercial Districts: Abundant foot traffic
- Golden Line: Key factor enhancing investment value
Shinchon Commercial Area Regains Vitality with Retro Sensibility & University Student Start-up Support
The Shinchon commercial area, which had previously slowed down, is revitalizing with retro sensibilities, such as "Reply 1988," the Seodaemun-gu urban regeneration project, and university student start-up support policies. The start of new apartment occupancy in Ahyeon Newtown and the demolition of Ahyeon overpass are expected to transform Shinchon's outdated image and bring new changes. The relocation of Jongno Academy's main branch to Shinchon-ro and the increase in newly settled residents are also increasing the potential for the area to develop into a new hagwon (private education institute) district. Like a "rising star," the Shinchon commercial area is preparing to regain its former glory and usher in a new golden age.
- Retro Sensibility: "Reply 1988" nostalgia
- Urban Regeneration Project: Seodaemun-gu support policies
- New Golden Age: Potential for hagwon district development
Gross Floor Area of 184.13 Pyeong, 3.5% Stable Rental Income
This small building, with its basement 1 to ground 5 floors, is composed entirely of neighborhood living facilities, generating stable rental income. The Shinchon 3 billion won Food Alley small building has advantageous location conditions for selecting and configuring excellent tenants, and achieves a rental yield of over 3.5%. The building's interior and exterior are clean and well-maintained, and its distinctive interior design positively impacts tenant attraction. Like an "income generation base," this building realizes stable monthly rental income and offers an investment opportunity with expected building value appreciation through remodeling.
- Basement 1 to Ground 5 Floors: Small building size
- Stable Rental Income: 3.5% yield
- Income Generation Base: High investment appeal
Conclusion
The 3 billion won small building investment case in Shinchon's Food Alley demonstrates a successful investment model that simultaneously offers stable yields and future value appreciation in Shinchon, one of Seoul's main commercial districts. With its affordable sale price, excellent location conditions, stable rental income, and development benefits, this small building investment offers an opportunity for successful real estate investment.
