Analysis of Gangdong-gu Dunchon-dong 161 Building Sale Case: 2019 Transaction at ₩8.83 Billion, What's Its Current Value?
Hello. Dunchon-dong in Gangdong-gu, a major residential area in eastern Seoul and a hub of transformation due to large-scale reconstruction projects, has attracted significant attention in the real estate market in recent years. Today, we will analyze a 2019 sale case of a building located in Dunchon-dong, conducting an in-depth exploration of the market context at that time, its current (2025) value changes, and the underlying factors contributing to its real estate value appreciation.
Dunchon-dong Building Overview: ₩8.83 Billion Transaction in July 2019
First, let's look at the key information for this building.
- Location: 161 Dunchon-dong, Gangdong-gu, Seoul, Republic of Korea
- Nearest Subway Station: Dunchon-dong Station (Excellent accessibility)
- Transaction Date: July 2019
- Sale Price: ₩8.83 billion
- Land Price: ₩32.22 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 274.07 pyeong (approx. 905.8 sq. meters)
- Building Area: 1,275.08 pyeong (approx. 4,215 sq. meters)
- Zoning Classification: General Residential Zone 2
- Floors: B2 ~ 7F
- Road Conditions: Fronting an 8m road
- Completion Year: March 29, 1997
- Official Land Price (at the time): Approx. ₩14.60 million/pyeong (approx. 2.21 times lower than land price)
Value Assessment in the Context of the 2019 Market
In July 2019, this building was traded for ₩8.83 billion, forming a price of ₩32.22 million per pyeong, which was considered a middle price range within Dunchon-dong. Considering its land area of 274.07 pyeong and building area of 1,275.08 pyeong, it could be classified as a relatively large medium-sized building. Its frontage on an 8m road would have been assessed favorably for its commercial utilization potential.
At that time, Dunchon-dong was experiencing a rise in overall real estate value as the largest reconstruction project in Korea, the Dunchon Jugong Apartment Reconstruction, was actively underway.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Dunchon-dong in Gangdong-gu has seen a remarkably significant price increase since 2019, making it one of Seoul's leading areas. This is due to overwhelming development prospects such as large-scale population inflow and commercial changes resulting from the Dunchon Jugong Apartment Reconstruction (approximately 12,000 units), and the extension of Subway Line 9 (Dunchon Station to Godeok). It is estimated that the per-pyeong price of commercial real estate in the Gangdong-gu area, including Dunchon-dong, has increased by an average of 30% to 50% or more during this period.
Applying this growth rate to the 2019 land price, we can estimate its current value in 2025:
- Applying a 30% growth rate to ₩32.22 million/pyeong from 2019 results in approximately ₩41.88 million/pyeong.
- Applying a 50% growth rate results in approximately ₩48.33 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩41 million and ₩48 million per pyeong in 2025, which would lead to a very substantial increase in its overall market price.
Key Factors Driving Real Estate Value Appreciation
Behind this value appreciation are several positive factors inherent to the Dunchon-dong building:
- Decent Location: Its frontage on an 8m road near Dunchon-dong Station offers good accessibility, and its proximity to a large-scale apartment complex ensures stable residential and commercial demand.
- Stability of Zoning: While its General Residential Zone 2 classification may impose some restrictions on commercial use changes, it maintains stable value based on consistent residential and small-scale commercial facility demand.
- Reconstruction/Remodeling Expectations: Although it is an aging building completed in 1997, its location within an area undergoing significant development, such as the Dunchon Jugong Reconstruction, implies potential for future value appreciation through remodeling or reconstruction.
- Overwhelming Development Prospects: The Dunchon Jugong Reconstruction and the extension of Subway Line 9 (Dunchon Station extension) are key factors driving Dunchon-dong's future value, powerfully influencing the overall market price of surrounding real estate.
Investment Implications
This case presents the following important implications for investors:
- Value Appreciation in Redevelopment Areas: Clearly demonstrates the positive impact of large-scale reconstruction projects on surrounding real estate, especially commercial buildings.
- Importance of Road Conditions: Its frontage on an 8m road is advantageous for commercial uses such as retail leasing, and also enhances its utility value in the event of future redevelopment.
- Stable Rental Demand: The residential and commercial demand around Dunchon-dong Station allows for expectations of stable rental income.
However, being an aging building means that future maintenance costs or the approval process for reconstruction should be considered as potential risk factors for investment.
Conclusion: Gangdong-gu Dunchon-dong Building, Value Shining Amidst Change
The Dunchon-dong, Gangdong-gu building sale case clearly demonstrates the excellent value appreciation potential of real estate in areas underpinned by large-scale development prospects. It serves as an important case that provides crucial insights for predicting future changes beyond mere past transaction prices.
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