Analysis of Gangnam-gu Cheongdam-dong 88 Building Sale Case: 2019 Transaction at ₩13.8 Billion, What's Its Current Value?
Hello. Cheongdam-dong in Gangnam-gu, known as Korea's premier luxury street and a trendsetter, is consistently regarded as a symbol of high-end real estate, attracting intense investor interest. 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 (as of August 27, 2025) value changes, and the underlying factors contributing to its real estate value appreciation.
Cheongdam-dong Building Overview: ₩13.8 Billion Transaction in June 2019
First, let's look at the key information for this building.
- Location: 88 Cheongdam-dong, Gangnam-gu, Seoul, Republic of Korea
- Nearest Subway Station: Apgujeong Rodeo Station (Excellent accessibility)
- Transaction Date: June 2019
- Sale Price: ₩13.8 billion *(※ The provided data mistakenly states ₩100 million; however, based on the per-pyeong price and land area, the total price is estimated to be ₩13.8 billion for analysis.)*
- Land Price: ₩144.50 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 95.50 pyeong (approx. 315.7 sq. meters)
- Building Area: 378.27 pyeong (approx. 1,250 sq. meters)
- Zoning Classification: General Residential Zone 2
- Floors: B2 ~ 5F
- Road Conditions: 2-lane road × 6m corner (Excellent commercial accessibility)
- Completion Year: March 2, 2004
- Official Land Price (at the time): Approx. ₩73.45 million/pyeong (approx. 1.97 times lower than land price)
Value Assessment in the Context of the 2019 Market
In June 2019, this building was traded for ₩13.8 billion, forming a price of ₩144.50 million per pyeong, which represents a top-tier price range in Cheongdam-dong, Gangnam-gu. Considering its land area of 95.50 pyeong and building area of 378.27 pyeong, it could be classified as a medium-to-large building. Although its location in a General Residential Zone 2 might have imposed some limitations on commercial use, its price fully reflected the overwhelming premium of the high-end commercial district near Apgujeong Rodeo Station. Notably, its corner location at the intersection of a 2-lane road and a 6m road would have acted as a strong point for its excellent visibility and commercial accessibility.
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 Apgujeong Rodeo 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 as of August 27, 2025:
- Applying a 20% growth rate to ₩144.50 million/pyeong from 2019 results in approximately ₩173.40 million/pyeong.
- Applying a 30% growth rate results in approximately ₩187.85 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩173 million and ₩187 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 corner location at the intersection of a 2-lane road and a 6m road near Apgujeong Rodeo Station offers excellent transportation accessibility and is highly advantageous for attracting floating populations. This reflects the value of Gangnam's premier commercial district.
- Zoning Utilization: Although it is classified as a General Residential Zone 2 with some restrictions on commercial use changes, its suitability for high-end office use or small commercial properties 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 2004, it still has a low risk of obsolescence, and its clean exterior and modern interior condition are highly advantageous for attracting tenants.
- Local Development Prospects: The Cheongdam District redevelopment and commercial revitalization are major prospects driving the long-term value appreciation of this building.
Investment Implications and Precautions
This case presents the following important implications for investors:
- Value of Premium Location: Its prime location near Apgujeong Rodeo Station and being a relatively new building combine to demonstrate the potential for generating stable capital gains.
- Power of Corner Location: A building at a 2-lane road and 6m road corner, with excellent visibility and accessibility, offers high utility for new construction of retail shops or high-end offices, serving as a basis for generating stable rental income.
- Abundant Rental Demand: The demand from high-end commercial businesses and offices around Apgujeong Rodeo 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 2.
Conclusion: Gangnam Cheongdam-dong Building, A Symbol of Unchanging Premium and Growth Potential
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.
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