Gangnam's 'Golden Commercial District' in Nonhyeon-dong, 4.7 Billion KRW Corner Small Building with Shinbundang Line Extension Benefits... Is the Transformation of 'Garibiya' Building Innocent?
The star of today's investment case study is a small building located at 184-38 Nonhyeon-dong, Gangnam-gu, Seoul, which was traded for 4.75 billion KRW (approximately 76.71 million KRW per pyung) in November 2019. This building spans from the basement to the 5th floor above ground, with a land area of 61.92 pyung and a total floor area of 170.72 pyung. Its most significant attraction is its location in the super-prime area, just 160 meters (a 2-minute walk) from Exit 3 of Sinnonhyeon Station on the coveted Subway Line 9.
Prime Corner Location in the Vibrant Commercial District Connecting Gangnam Station, Sinnonhyeon Station, and Nonhyeon Station
This small building is located just behind Gangnam-daero, occupying a corner position in the heart of the bustling commercial district that stretches from Gangnam Station to Sinnonhyeon Station and Nonhyeon Station. Its corner location, where 8-meter and 4-meter roads meet, provides excellent road conditions.
Shinbundang Line Extension Scheduled for Opening in 2022 (Estimated to be Completed by April 2025), Improved Accessibility to Yongsan! Double Subway Station 'Premium'
This building is situated in a region set to significantly benefit from the extension of the Shinbundang Line, initially scheduled to open in January 2022 (currently estimated to be completed by April 11, 2025). The Shinbundang Line extension will dramatically improve accessibility between Yongsan and Gangnam, and Sinnonhyeon Station, where this small building is located, will transform into a double subway station with the addition of the Shinbundang Line to the existing Line 9, further boosting its investment value.
Abundant Demand for Various Businesses Including Offices, Restaurants, and Educational Facilities in the Gangnam-daero Area
The Nonhyeon-dong commercial district, where this small building is located, is a vibrant area with a harmonious blend of large office buildings along Gangnam-daero, educational facilities, and a trendy food district, resulting in consistently high foot traffic. Thanks to a strong surrounding residential population and constant flow of people, the risk of vacancies is low, and the building offers the advantage of efficient tenant composition when remodeled.
Attractive Price Compared to Nearby Sales, Expect Increased Value Through Remodeling
Considering that buildings on the main road of the Sinnonhyeon Station food district have been traded at prices ranging from 100 million KRW to 130 million KRW per pyung, and even buildings located on the inner streets behind this one have been sold in the late 70 million KRW per pyung range, the sale price per pyung of 'Garibiya Building' at 76.71 million KRW is relatively affordable. Therefore, it is expected that the building's value can be significantly increased through remodeling, given its prime location and the transportation benefits of the Shinbundang Line extension. Although it is a five-story building above ground with a basement, the lack of an elevator is a typical drawback of older small buildings. To compensate for this, even with a slight loss in rentable area, installing an elevator and remodeling the entire building into trendy shops or offices would revitalize it as a neighborhood living facility, leading to improved profitability and a substantial increase in value upon resale.
Conclusion: Investing in a Small Building Near Sinnonhyeon Station, Capturing Both Shinbundang Line Benefits and Value Enhancement Through Remodeling
This investment case study of a small building located in Nonhyeon-dong, Gangnam, in the super-prime area of Sinnonhyeon Station, presents an attractive investment opportunity that combines the clear benefits of the Shinbundang Line extension with the potential for value enhancement through remodeling.
