Posco Intersection Building Sold for ₩9.15 Billion 6 Years Ago, What's Its Current Value Amidst 'GBC' Boost? (Investment Case Analysis)

Real estate investment begins with the vision to see the future. Approximately 6 years ago, in July 2019, a 5-story building near Posco Intersection, the heart of Gangnam Teheran-ro, was sold for ₩9.15 billion. The previous owner of this transaction made a capital gain of ₩1.35 billion in just 2 years of holding. So, what result did the new owner who purchased this building in 2019 face after 6 years, amidst South Korea's largest development boosts, 'Hyundai GBC' and 'Yeongdong-daero Complex Development'? Let's track the value change of a key Gangnam location through past transactions.

1. The Transaction in July 2019: Revisit the Basic Specs

First, here are the specs of the building at 891-41 Daechi-dong, Gangnam-gu, which was traded 6 years ago.

Location: 891-41 Daechi-dong, Gangnam-gu, Seoul
Subway Station: Near Samsung Station (Line 2), Posco Intersection corner
Transaction Date: July 2019
Sale Price: ₩9.15 billion
Land Price (per pyeong at the time): Approx. ₩120.56 million
Scale: Land area 75.90 pyeong / Total floor area 329.94 pyeong (Basement 2nd Floor ~ Ground 5th Floor)
Completion Year: December 1995 (Approx. 24 years old at the time of transaction)
Zoning: General Commercial Zone

Although it was a building over 20 years old, built in 1995, it was recognized for its high value thanks to the advantage of high floor area ratio in a 'General Commercial Zone' and the overwhelming location of Posco Intersection.

2. Investment Analysis: Betting on 'Short-Term Gain' and 'Future Value'

Looking at the past history of this building, the owner before 2019 purchased it for ₩7.8 billion in June 2017 and sold it after 2 years, leaving a capital gain of ₩1.35 billion. This itself is a successful short-term investment.

So why did the new buyer in 2019 choose this building at an already increased price? They were betting on the **huge 'future value' that was just around the corner**.

3. The Decisive Factors: 'Hyundai GBC' and 'Yeongdong-daero Complex Development'

2019 was the time when two super large-scale projects that would change the future of this area were taking shape.

1. Hyundai Motor Group Global Business Center (GBC): This is a super large-scale complex facility development plan on the former KEPCO site right across the street, including South Korea's tallest landmark building along with offices, lodging, convention centers, performance halls, etc. This is a key project that will elevate this area to become the **new undisputed center of Seoul**.

2. Yeongdong-daero Complex Development: This project involves developing the underground area of Yeongdong-daero from Samsung Station to Bongeunsa Station into an 'underground city' 30 times the size of Jamsil Baseball Stadium. It is expected to create tremendous synergy in conjunction with the GBC, with a complex transfer center integrating 6 railway lines including KTX and GTX, along with commercial and cultural facilities.

The buyer in 2019 predicted that when these two 'earth-shattering' level development boosts fully materialize, the real estate value in this area would skyrocket to an incomparable level.

4. So, What About Now? (Current Value Estimation in 2025)

So, how has the value of this building changed now, 6 years later in 2025? As the GBC and Yeongdong-daero development became visible, land prices in this area soared.

Land Value: The land price of this site, which was approximately ₩120 million per pyeong in 2019, is currently estimated to **well exceed ₩200 million per pyeong**. A calculation shows that the land value alone could be assessed at over ₩15 billion.
Asset Value: This asset, purchased for ₩9.15 billion 6 years ago, is highly likely to have **increased by at least 1.5 times to nearly 2 times** its value now.

Ultimately, the investment in 2019 was not a 'peak', but a very wise and bold bet looking towards the future.

The Eye to Read Development Boosts, The Core of Gangnam Investment

This Daechi-dong transaction case clearly shows the core of real estate investment, especially in key Gangnam areas. It is the importance of having the **foresight to read the flow of macroscopic urban development plans and preemptively secure the areas that will benefit the most**.

What do you think of the value change of the Posco Intersection building sold for ₩9.15 billion 6 years ago? Can you feel the power of large-scale development boosts like 'GBC'?
When investing in real estate, which should you prioritize more: current profitability or 'future value' several years from now?
Where in Seoul do you think there are areas with similar large-scale development planned that are considered to have high investment value? Please share your insights!

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

The building at 891-41 Daechi-dong, Gangnam-gu, was sold in January 2025.

※ Transaction Details

Location: 891-41 Daechi-dong, Gangnam-gu, Seoul
Subway Station: Samsung Station
Transaction Date: January 2025
Sale Price: ₩9.15 billion
Land Price per Pyeong: ₩120.56 million
Land Area: 75.90 pyeong (251㎡)
Building Area: 329.94 pyeong (1090.72㎡)
Zoning: General Commercial Zone
Floors: Basement 2nd Floor ~ Ground 5th Floor
Road Condition: 8m
Completion Year: 1995.12.01
Publicly Assessed Value: Approx. ₩8.15 million
Publicly Assessed Value Ratio to Land Price: Approx. 14.79 times

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Posco Intersection Building Sold for ₩9.15 Billion 6 Years Ago, What's Its Current Value Amidst 'GBC' Boost? (Investment Case Analysis)