Guui-dong, Gwangjin-gu, 2.8 Billion KRW Corner Small Building on Main Road to Benefit from Remian & XI Ella 'New Construction Effect'
An investment case study of a corner small building on a main road in Guui-dong, Gwangjin-gu, Seoul, sold for 2.8 billion KRW, is attracting attention for its potential to benefit from the 'new construction effect' of nearby Remian Guui Park and Guui XI Ella apartments.
The building investment case study we will introduce today is for the property located at 229-43 Guui-dong, Gwangjin-gu, Seoul, which was sold for 2.8 billion KRW (approximately 41.85 million KRW per pyung) in May 2020. This building has one basement level and four above-ground floors, with a land area of 66.91 pyung and a total floor area of 156.86 pyung. Built on August 29, 1992, this building boasts excellent visibility and advertising potential as it is situated on a corner lot along Gwangnaru-ro, a 6-lane main road.
Close to Achasan Mountain and Children's Grand Park... Investment Value 'UP' in a Pleasant Residential Environment
Guui-dong in Gwangjin-gu is a region with a pleasant residential environment rich in parks and green spaces such as Achasan Mountain and Seoul Children's Grand Park. This pleasantness enhances residential satisfaction and allows for expectations of stable rental demand. Furthermore, it is located within reach of Gwangnaru Station (Subway Line 5), Gangbyeon Station (Subway Line 2), and Children's Grand Park Station (Subway Line 7), and offers excellent accessibility to Gangdong-gu and Songpa-gu via the Olympic Bridge, making it an attractive location with convenient transportation.
Remian Guui Park, Guui XI Ella New Construction Boom... Future Value 'Expected'
What further enhances the investment value of this small building is the news of the new construction and pre-sale of Remian Guui Park Apartment and Guui XI Ella Apartment complexes directly across from the building. The construction of large-scale apartment complexes typically boosts the revitalization of surrounding commercial areas and promotes population influx, positively impacting real estate value increases. Considering that the average apartment price per pyung in the area at the time was approximately 36 million KRW, the fact that the price per pyung of this small building with a high land share was similar made it an attractive alternative investment to apartments.
Corner on a 6-Lane Main Road, High Visibility... 'Optimal' for Various Franchises
Located on a corner along Gwangnaru-ro, a 6-lane main road, this building boasts a wide frontage of approximately 25 meters. This is a significant advantage for various businesses such as hospitals, educational institutions, showrooms, and veterinary clinics, as it allows for excellent advertising effects. In fact, Kyochon Chicken, a famous franchise, was already operating on the first floor, and the entire building was leased to businesses like karaoke rooms and offices, ensuring a stable rental income. As a commercial building (all neighborhood living facilities), it was possible to leverage bank loans for purchase, making it an attractive small building for investment. It also had the potential for increased rental income through remodeling or re-leasing.
Conclusion: Guui-dong Corner Small Building Investment on Main Road, Capturing Both New Construction Benefits and Stable Income!
This investment case study of a corner small building in Guui-dong, Gwangjin-gu, located in a double subway station area and sold for 2.8 billion KRW, presents a solution for successful real estate investment by possessing excellent location conditions, abundant surrounding demand, development opportunities, and potential for various uses. With expectations of future value increases due to the development of nearby new apartment complexes, this property is projected to continue its steady value appreciation.
