Why Did the Hongdae Small Building Sell for 3.99 Billion Won? A Perfect Analysis of Profitability and Location Conditions!
Recently, a small building located in the Hongdae Station restaurant district was sold for 3.99 billion won, drawing significant interest from investors. This income-generating building, with a total floor area of 104.52 pyeong from basement 1 to ground floor 3, boasts a high rental yield of 4.41%, ranking among the top in profitability within Seoul's main commercial districts. What kind of charm does this small building possess? The secrets to its successful investment are revealed right now.
1. 4.41% High Profitability, Enhancing Investment Value
The biggest attraction of this small building is its high rental yield of 4.41%. It boasts a top-tier yield among small buildings in Seoul's main commercial districts, promising stable rental income. This serves as an attractive investment option for investors and is a key factor in achieving successful investment results.
- High Profitability: 4.41% Rental Yield
- Stable Income: Expectation of steady rental income
- Attractive Investment: Increase in investment value
2. Entire Building as Commercial Facilities, Advantageous for Loan Utilization
This small building is composed entirely of commercial facilities from basement 1 to ground floor 3. Thanks to this, building loans are easily utilized, and purchase was possible with a small cash investment. This is an important factor that reduces the initial investment burden and enhances investment efficiency for investors.
- Entire Building as Commercial Facilities: Easy loan utilization
- Small Cash Investment: Reduced initial investment burden
- Enhanced Investment Efficiency: Maximization of investment effects
3. Hongdae Main Commercial District Corner Building, Excellent Location Conditions
This small building is located between Seogyo-dong Obok-gil and Dabok-gil, the core commercial area within the Hongdae Station restaurant district. As a square corner building, it has excellent visibility and accessibility, and faces a 6m*4m corner road, ensuring active pedestrian traffic. This plays a crucial role in securing stable rental demand and minimizing vacancy risks.
- Hongdae Main Commercial District: Optimal location conditions
- Corner Building: High visibility and accessibility
- Active Traffic: Stable rental demand
4. Renovation Completed, Minimizing Vacancy Risks with Diverse Tenant Composition
Renovation was completed in 2014, ensuring high residual building value and reducing concerns about additional costs. Moreover, with diverse tenants occupying a total of 6 rental spaces, vacancy risks can be minimized. This contributes to maintaining stable rental income and enhancing investment stability.
- Renovation Completed: Minimization of additional costs
- Diverse Tenant Composition: Diversification of vacancy risks
- Securing Investment Stability: Maintenance of stable income
In Conclusion
This small building has achieved a successful investment case based on various advantages such as high profitability, excellent location conditions, and stable rental composition. If you are interested in real estate investment, please check the possibilities of investing in small buildings through this case.
