Sinchon Station Corner Building Sold for ₩1.49 Billion 6 Years Ago, What's Its Value Now? (Sinchon Commercial Area Revival and Investment Case Analysis)

Let's analyze a building transaction case in Sinchon, a representative university commercial area in Seoul, which proves that 'location' is everything in real estate investment. Approximately 6 years ago, in June 2019, a 3-story corner building over 30 years old near Sinchon Station was sold for ₩1.49 billion. Although it was a considerable amount even then, this transaction is an interesting barometer showing the resilience of the Sinchon commercial area through the massive crisis of the COVID-19 pandemic, and why 'university commercial areas' are strong even in recessions.

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

First, here are the specs of the building at 106-8 Nogosan-dong, Mapo-gu, which was traded 6 years ago.

Location: 106-8 Nogosan-dong, Mapo-gu, Seoul
Subway Station: Sinchon Station (Line 2) area
Transaction Date: June 2019
Sale Price: ₩1.49 billion
Land Price (per pyeong at the time): Approx. ₩50.68 million
Scale: Land area 29.40 pyeong / Total floor area 55.60 pyeong (Basement 1st Floor ~ Ground 3rd Floor)
Completion Year: December 1987 (Approx. 32 years old at the time of transaction)
Road Condition: 8m * 4m corner (Excellent visibility and accessibility)
Zoning: General Commercial Zone (Best development potential)

Based on the time of the transaction, it was a very old building, well over 30 years old. However, despite its small land area, it had the powerful advantages of a 'corner location' and 'General Commercial Zone', which are key factors increasing investment value.

2. Investment Analysis: Why Buy a 32-Year-Old Dilapidated Building?

The buyer in 2019 invested not in the building's old and dilapidated current appearance, but in the **'overwhelming location'** and **'future development potential'** that this land possessed.

① Unending Demand, The Power of University Commercial Areas: The Sinchon commercial area is surrounded by South Korea's top prestigious universities such as Yonsei University, Ewha Womans University, and Sogang University. This means that the floating population of young people in their 20s never dries up, 365 days a year. It is a top-tier location with little worry about vacancy rates, where basic demand is guaranteed for any type of business, be it restaurants, cafes, bars, or study rooms.
② Best Development Potential 'General Commercial Zone': The zoning of this building is a 'General Commercial Zone', not a residential zone. This means that the floor area ratio and building coverage ratio are very high, allowing for the demolition of the old 3-story building and the construction of a much taller and wider new building. In other words, it was land with the best potential to multiply asset value several times through 'development'.

3. The Resilience of 'University Commercial Areas' That Overcame the COVID-19 Pandemic

After 2019, the world faced the massive crisis of the COVID-19 pandemic. University commercial areas, in particular, were hit hard by the shift to non-face-to-face classes and faced a crisis for a time.

However, after the endemic, as universities fully transitioned back to in-person classes, the Sinchon commercial area revived fiercely. As the lost youthful vitality returned, vacancies were quickly filled, and the commercial area regained its former reputation. This proved that **A-grade university commercial areas like Sinchon may be shaken by temporary crises, but their fundamental demand and value do not easily collapse**.

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

So, what has happened to the value of this building, which was traded for approximately ₩50 million per pyeong 6 years ago? Considering the complete recovery of the Sinchon commercial area and the increase in land prices over the years, the value of this building is likely to have increased significantly.

Current Land Value: The current land price of commercial land near Sinchon Station is estimated to **approach or exceed ₩100 million per pyeong**, even with a conservative estimate. The land value alone has already reached a value close to ₩3 billion.
Value Upon New Construction: If the buyer in 2019 had constructed a new building on this site, its value could command ₩4 billion to ₩5 billion or more.

In conclusion, the ₩1.49 billion investment in 2019 proved to be a very successful investment that overcame even the unexpected crisis of COVID-19.

Lessons from Sinchon Small Building Investment

This Nogosan-dong transaction case once again reminds us of the core principle of real estate investment. That is, **securing an irreplaceable location** is the most certain way to overcome temporary crises and lead to long-term success.

What do you think of the value increase of the Sinchon building traded for ₩1.49 billion 6 years ago, considering even the COVID crisis? Isn't the current value increase surprising?
Compared to other large commercial areas like Hongdae or Gangnam Station, what do you think is the biggest charm unique to the 'Sinchon' university commercial area?
If you had ₩1.5 billion, would you invest in an old small building in Sinchon like in this case? 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.

The building at 106-8 Nogosan-dong, Mapo-gu, Seoul, was sold in June 2019.

※ Transaction Details

Location: 106-8 Nogosan-dong, Mapo-gu, Seoul
Subway Station: Sinchon Station
Transaction Date: June 2019
Sale Price: ₩1.49 billion
Land Price per Pyeong: ₩50.68 million
Land Area: 29.40 pyeong (97.27㎡)
Building Area: 55.60 pyeong (183.80㎡)
Zoning: General Commercial Zone
Floors: Basement 1st Floor ~ Ground 3rd Floor
Road Condition: 8m*4m corner
Completion Year: 1987.12.01
Publicly Assessed Value: Approx. ₩3.01 million
Publicly Assessed Value Ratio to Land Price: Approx. 16.84 times

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Sinchon Station Corner Building Sold for ₩1.49 Billion 6 Years Ago, What's Its Value Now? (Sinchon Commercial Area Revival and Investment Case Analysis)