The Hidden Investment Value of an 8.5 Billion KRW Small Building Near Renaissance Hotel in Gangnam: Development Boom (ft. Proximity to Yeoksam Station, 3.6% Yield, Teheran-ro)
An 8.5 billion KRW small building located near Yeoksam Station, the heart of Gangnam, is drawing significant attention from investors. Backed by the Renaissance Hotel redevelopment boom and Teheran-ro's ample rental demand, this building presents both stable yield and future value appreciation potential. What charm does this building offer to investors? Let's analyze the investment case of this small building in Yeoksam-dong in detail.
Yeoksam Station 8.5 Billion KRW Small Building, The Secret to a 3.6% Yield?
In January 2020, the small building at 723-12 Yeoksam-dong was sold for 8.5 billion KRW. This building, with two basement floors and six above-ground floors, has a site area of 105 pyeong and a gross floor area of 431.78 pyeong, and was completed in 2007. Located a 6-minute walk from Yeoksam Station on Line 2, it was traded at a price of 80.95 million KRW per pyeong. In particular, the rental yield of 3.61% acted as an attractive factor for investors seeking stable income.
- 8.5 Billion KRW Small Building Transaction: 3.61% Rental Yield
- Proximity to Yeoksam Station & Teheran-ro Side Street: Excellent Location Conditions
- Completed in 2007: Stable Building Condition
Renaissance Hotel Redevelopment Boom, Expectation of Future Value Appreciation
The small building in Yeoksam-dong is located in a beneficiary area of the Renaissance Hotel redevelopment boom. The Renaissance Hotel redevelopment project, with two buildings and 37 floors, is expected to lead to the revitalization of the surrounding commercial area and the appreciation of real estate values upon completion. Also, with the completion of the sale of Yeoksam Prugio City, the resident population is expected to increase, further enriching rental demand.
- Renaissance Hotel Redevelopment: Expectation of Future Value Appreciation
- Yeoksam Prugio City: Increased Resident Population, Increased Rental Demand
- Large Offices in Teheran-ro: Ample Rental Demand
Teheran-ro Commercial Area Side Street, Securing Stable Rental Demand
The small building in Yeoksam-dong is located on a side street of the Teheran-ro commercial area, allowing it to secure rental demand from various industries. Stable rental income can be expected as excellent tenants such as IT offices, cafes, educational research facilities, and architectural offices are located there. Additionally, the building's 13 or more independent parking spaces and elevators contribute to increasing tenant satisfaction and lowering vacancy rates.
- Teheran-ro Commercial Area: Securing Diverse Rental Demand
- Excellent Tenants: Expectation of Stable Rental Income
- Independent Parking Spaces & Elevators: High Rental Competitiveness
Conclusion
The 8.5 billion KRW small building in Yeoksam-dong presents both stable profitability and future value appreciation potential based on the Renaissance Hotel redevelopment boom and Teheran-ro's ample rental demand. However, the fact that it is located on a 4m road is a disappointing aspect, but considering the building's own competitiveness and surrounding environment, it is judged to be a high-value property.
