Analysis of Gangdong-gu Seongnae-dong 50-16,17,18 Building Sale Case: 2019 Transaction at ₩11.75 Billion, What's Its Current Value?

Hello. Cheonho-dong in Gangdong-gu, a representative commercial hub and transportation nexus in eastern Seoul, consistently exhibits a dynamic real estate market. Today, we will analyze a 2019 sale case of a building located here in Seongnae-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.

Seongnae-dong Building Overview: ₩11.75 Billion Transaction in March 2019

First, let's look at the key information for this building.

Location: 50-16,17,18 Seongnae-dong, Gangdong-gu, Seoul, Republic of Korea
Nearest Subway Station: Cheonho Station (Excellent accessibility)
Transaction Date: March 2019
Sale Price: ₩11.75 billion
Land Price: ₩116.30 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 101.04 pyeong (approx. 334 sq. meters)
Building Area: 503.43 pyeong (approx. 1,664 sq. meters)
Zoning Classification: General Commercial Zone
Floors: B2 ~ 8F
Road Conditions: 2-lane road × 4m corner (Average commercial accessibility)
Completion Year: June 10, 2005
Official Land Price (at the time): Approx. ₩29.92 million/pyeong (approx. 3.89 times lower than land price)

Value Assessment in the Context of the 2019 Market

In March 2019, this building was traded for ₩11.75 billion, forming a price of ₩116.30 million per pyeong, which falls within the upper price range in Seongnae-dong, Gangdong-gu. Considering its land area of 101.04 pyeong and building area of 503.43 pyeong, it could be classified as a medium-to-large commercial building. Notably, its location in a General Commercial Zone (Building Coverage Ratio 70%, Floor Area Ratio 800%) gave it significant potential to maximize its commercial utilization value in future development.

Its location near Cheonho Station and at a 4m corner would have been highly valued for its potential to meet the demand for small-scale commercial spaces and offices.

Current (2025) Market Price Estimate: How Much Has Its Value Increased?

Seongnae-dong in Gangdong-gu has seen continuous price appreciation since 2019, driven by the revitalization of the commercial district around Cheonho Station and ongoing redevelopment prospects, such as the designation of Cheonho District as a redevelopment promotion zone. It is estimated that the per-pyeong price of real estate in the General Commercial Zone of Gangdong-gu has increased by an average of 20% to 30% during this period.

Applying this growth rate to the 2019 land price, we can estimate its current value in 2025:

Applying a 20% growth rate to ₩116.30 million/pyeong from 2019 results in approximately ₩139.56 million/pyeong.
Applying a 30% growth rate results in approximately ₩151.19 million/pyeong.

Therefore, the land price of this building could potentially be valued between ₩139 million and ₩151 million per pyeong in 2025, which would lead to a very significant increase in its overall market price.

Key Factors Driving Real Estate Value Appreciation

Behind this value appreciation are several positive factors inherent to the Seongnae-dong building:

Excellent Location: Located near Cheonho Station, it offers superb transportation accessibility and forms the central commercial district of Gangdong-gu, ensuring consistent floating population.
Optimal Zoning: Classified as a General Commercial Zone, it benefits from a Building Coverage Ratio of 70% and a Floor Area Ratio of 800%, allowing for high-density building construction in future development.
Relatively New Construction: Completed in 2005, it still has a low risk of obsolescence, and its clean exterior and interior condition are advantageous for attracting tenants.
Local Development Prospects: The Cheonho District redevelopment and commercial revitalization are strong prospects driving the long-term value appreciation of this building.

Investment Implications and Precautions

This case presents the following important implications for investors:

Potential of General Commercial Zones: Small buildings in station-area General Commercial Zones can maximize their value through reconstruction and remodeling that utilizes high floor area ratios.
Power of Corner Location: Although it's a 2-lane road corner, its location in the Cheonho Station area enhances its potential for use as small commercial shops or offices, contributing to stable rental income.
Stable Rental Demand: The demand for offices and commercial spaces around Cheonho Station allows for expectations of stable rental income.

However, being on a 2-lane road may limit accessibility compared to buildings on major roads, and the lack of specific data on rental yield suggests that additional verification is needed before investing.

Conclusion: Gangdong-gu Seongnae-dong Small Building, The Center of Change and Growth

The Seongnae-dong, Gangdong-gu building sale case demonstrates how excellent location, the potential of a General Commercial Zone, and local development prospects can combine to drive real estate value appreciation. It can be said to be an attractive investment opportunity that aligns with the changes and growth of the Cheonho-dong commercial district.

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Analysis of Gangdong-gu Seongnae-dong 50-16,17,18 Building Sale Case: 2019 Transaction at ₩11.75 Billion, What's Its Current Value?