Gangnam Station 30-Year-Old Building, ₩2.4 Billion Gain in 13 Years… What About Now, 6 Years Later? (Long-Term Investment Analysis)

Let's analyze a textbook transaction case that shows how the true value of real estate is created by 'time' and 'location'. Approximately 6 years ago, in June 2019, a 4-story building over 30 years old near Gangnam Station in Yeoksam-dong was sold for ₩5.3 billion. Although it was a considerable amount even then, whether this transaction was a 'successful investment' is even clearer from the perspective of today, 6 years later. The previous owner of this building made a huge capital gain of ₩2.4 billion through 13 years of long-term holding. So, what result did the new owner who purchased this building in 2019 face after 6 years? Let's track the value change of Gangnam real estate through past transactions.

1. 2006 → 2019: A ₩2.4 Billion Gain Born from '13 Years of Waiting'

First, let's look at the details of the transaction that took place in 2019 and its history before that.

Location: 830-22 Yeoksam-dong, Gangnam-gu, Seoul
Subway Station: Gangnam Station (Line 2, Sinbundang Line) area
Sale Price in June 2019: ₩5.3 billion (Approx. ₩46.95 million per pyeong)
Building: Basement 1st Floor ~ Ground 4th Floor (Completed in 1988, approx. 31 years old at the time)
Land Area: 112.89 pyeong

The previous owner of this building **purchased it for ₩2.9 billion (approx. ₩25.69 million per pyeong) in February 2006**. And **sold it for ₩5.3 billion in 2019, 13 years later**, making a simple calculation of a **huge capital gain of ₩2.4 billion**. This means the asset value increased by ₩185 million per year on average. This is a representative case showing that assets in a 'key Gangnam location' can achieve tremendous value appreciation just by holding them long-term.

2. 2019, The New Owner's Choice is a 'Value Appreciation' Strategy

So, what was the investment strategy of the new owner who purchased this old building for ₩5.3 billion in 2019? It is highly likely that they did not simply wait for the market price to rise. The 113 pyeong of land under the old building, which was over 30 years old, was the best canvas for 'Value-add'.

The buyer at the time likely pursued a strategy of **extensively remodeling this building to match modern sensibilities, or even demolishing it and constructing a new building** to maximize rental income and elevate the building's value itself.

3. And Now in 2025… Asset Value Leaped Once Again

So, how has the value of this building changed now, 6 years later in 2025? Real estate value in Gangnam has continued to rise since 2019.

Increase in Land Value: The land price in this area, which was approximately ₩47 million per pyeong in 2019, is currently estimated to command **well over twice that, between ₩80 million and ₩100 million per pyeong**, even with a conservative estimate. A calculation shows that the land value alone could already approach ₩9 billion to ₩11 billion.
Value Increase After Development: If the buyer in 2019 had constructed a new building on this site, its value would be further maximized. The value of a modern new building that fully utilizes the floor area ratio, unlike the old 4-story building, would well exceed ₩11 billion.

In conclusion, both the buyer in 2006 and the buyer in 2019 made successful investments by believing in the power of 'time' and 'location'.

The Invincible Legend of Gangnam Real Estate, and the Power of Time

This Yeoksam-dong transaction case demonstrates important principles of real estate investment. ①Securing an **irreplaceable key location**, ②approaching it from a long-term perspective by believing in the **power of time**, and ③if necessary, employing **active value appreciation strategies such as remodeling or new construction** are the core elements of successful investment.

What do you think of the 20-year value appreciation of the building near Gangnam Station? Do you feel the truth of the phrase 'Gangnam is invincible'?
In real estate investment, which strategy do you find more attractive: 'simple long-term holding' or 'active value appreciation after development'?
If you had ₩5.3 billion, would you have purchased this building in 2019? We are curious about your choice and the reason behind it.

We hope you had a useful time gaining wisdom to see the future through past transactions.

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Gangnam Station 30-Year-Old Building, ₩2.4 Billion Gain in 13 Years… What About Now, 6 Years Later? (Long-Term Investment Analysis)