Analysis of Gangnam-gu Cheongdam-dong 105-2 Building Sale Case: 2019 Transaction at ₩5.26 Billion, What's Its Current Value?

Hello. Cheongdam-dong in Gangnam-gu, often regarded as Korea's premier luxury residential and commercial district, is consistently seen as a symbol of high-end real estate. Today, we will conduct an in-depth analysis of a building sale case in Cheongdam-dong in 2019, exploring the market context at that time, its current (2025) value changes, and the underlying factors contributing to its real estate value appreciation.

Cheongdam-dong Building Overview: ₩5.26 Billion Transaction in May 2019

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

Location: 105-2 Cheongdam-dong, Gangnam-gu, Seoul, Republic of Korea
Nearest Subway Station: Cheongdam Station (Excellent accessibility)
Transaction Date: May 2019
Sale Price: ₩5.26 billion
Land Price: ₩96.07 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 54.75 pyeong (approx. 181 sq. meters)
Building Area: 149.66 pyeong (approx. 495 sq. meters)
Zoning Classification: General Residential Zone 3
Floors: B2 ~ 5F
Road Conditions: Fronting a 6m road
Completion Year: November 25, 2014
Official Land Price (at the time): Approx. ₩35.57 million/pyeong (approx. 2.70 times lower than land price)

Past Transaction History and Sale Profit Analysis

This building has an interesting transaction history since its new construction in 2014.

March 2014: Sold as a new construction site for ₩2.45 billion (₩44.75 million per pyeong). New construction completed on November 25, 2014.
June 2017: Sold for ₩4.6 billion (₩87.02 million per pyeong).
May 2019: Sold for ₩5.26 billion (₩96.07 million per pyeong) after approximately 2 years of ownership.

Notably, the profit from its sale after 2 years of ownership, following the land sale and new construction in 2014, is significant:

Generated ₩660 million in sale profit over 2 years.
This translates to approximately ₩330 million annually, or about ₩27.50 million per month (based on simple sale profit).

This is interpreted as a combined result of the rapid value appreciation in the Cheongdam-dong real estate market and the advantages of the building's excellent location and new construction.

Value Assessment in the Context of the 2019 Market

In May 2019, this building was traded for ₩5.26 billion, forming a price of ₩96.07 million per pyeong, which falls within the upper price range in Cheongdam-dong, Gangnam-gu. Considering its land area of 54.75 pyeong and building area of 149.66 pyeong, it could be classified as a small commercial building. Although its location in a General Residential Zone 3 might have imposed some limitations on commercial use, its price fully reflected the overwhelming premium location value near Cheongdam Station and the merit of its relatively new construction.

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

Cheongdam-dong in Gangnam-gu has seen continuous price appreciation since 2019, driven by the sustained revitalization of the high-end commercial district around Cheongdam Station, redevelopment (e.g., Cheongdam District redevelopment), and an increase in brand value centered on luxury streets. It is estimated that the per-pyeong price of commercial real estate in the Gangnam area has increased by an average of 20% to 30% or more 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 ₩96.07 million/pyeong from 2019 results in approximately ₩115.28 million/pyeong.
Applying a 30% growth rate results in approximately ₩124.89 million/pyeong.

Therefore, the land price of this building could potentially be valued between ₩115 million and ₩124 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 Cheongdam-dong building:

Optimal Location: Its frontage on a 6m road near Cheongdam Station offers superb transportation accessibility and is integrated into Cheongdam-dong's premier commercial district, ensuring a stable floating population.
Zoning Utilization: Although it is classified as a General Residential Zone 3 with some development restrictions, its suitability for small commercial and high-end office use ensures consistent rental demand. Its high utility for high-end commercial facilities reflecting Cheongdam-dong's characteristics makes it very attractive.
Relatively New Construction: Completed in 2014, it has a low risk of obsolescence and maintains a clean exterior and modern interior condition, which is highly advantageous for attracting tenants.
Local Development Prospects: The Cheongdam District redevelopment and commercial revitalization are major prospects driving the long-term value of Cheongdam-dong as a whole.

Investment Implications and Precautions

This case presents the following important implications for investors:

Stable Value Appreciation: The combination of a prime, luxury location in Gangnam near Cheongdam Station and new construction demonstrates the potential for generating stable capital gains even in a short period.
Importance of Road Conditions: Its frontage on a 6m road enhances its potential for use as small commercial shops or offices, contributing to stable rental income.
Abundant Rental Demand: The demand from high-end commercial businesses and offices around Cheongdam Station allows for expectations of stable rental income.

However, it is important to note that legal review may be required for large-scale commercial expansion due to the land use restrictions in the General Residential Zone 3.

Conclusion: Gangnam Cheongdam-dong Small Building, An Unchanging Investment Symbol

The Cheongdam-dong, Gangnam-gu building sale case clearly demonstrates how excellent location, new construction, and development prospects can combine to drive explosive real estate value appreciation in Korea's premier real estate market. Cheongdam-dong is still considered a core investment destination with high growth potential and unchanging investment appeal.

#CheongdamDongBuilding #GangnamGuRealEstate #SmallBuildingInvestment #CheongdamStation #RealEstateInvestment #CheongdamDong #RealEstateMarketPrice #SmallBuilding #RealEstateValue #RealEstateAnalysis #GangnamCommercialRealEstate #RealEstateMarketTrends #RealEstateFinancialTech #CheongdamDistrict #LuxuryStreet

Analysis of Gangnam-gu Cheongdam-dong 105-2 Building Sale Case: 2019 Transaction at ₩5.26 Billion, What's Its Current Value?