Analysis of Gangnam-gu Cheongdam-dong 22-19 Building Sale Case: 2019 Transaction at ₩6.5 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 its investment value through past transaction history, its current (as of August 28, 2025) value changes, and the underlying factors contributing to its real estate value appreciation.
Cheongdam-dong Building Overview: ₩6.5 Billion Transaction in April 2019
First, let's look at the key information for this building.
- Location: 22-19 Cheongdam-dong, Gangnam-gu, Seoul, Republic of Korea
- Nearest Subway Station: Hakdong Sageori and Apgujeong Rodeo Station (Excellent accessibility) *(※ The provided data notes Apgujeong Rodeo Station, but geographically, it's also adjacent to Hakdong Sageori, which is reflected.)*
- Transaction Date: April 2019
- Sale Price: ₩6.5 billion
- Land Price: ₩125.66 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 51.73 pyeong (approx. 171 sq. meters)
- Building Area: 143.09 pyeong (approx. 473 sq. meters)
- Zoning Classification: General Residential Zone 2
- Floors: G5F
- Road Conditions: Fronting a 2-lane road
- Completion Year: December 30, 2003
- Official Land Price (at the time): Approx. ₩43.83 million/pyeong (approx. 2.87 times lower than land price)
Past Transaction History and Sale Profit Analysis
This building has an interesting transaction history, showing consistent value appreciation in a short period.
- April 2017: Sold for ₩5.7 billion (₩104.38 million per pyeong).
- April 2019: Sold for ₩6.5 billion (₩125.66 million per pyeong) after approximately 3 years of ownership.
It recorded significant capital gains during the 3-year holding period:
- Generated ₩800 million in capital gains over 3 years.
- This translates to approximately ₩266.67 million annually, or about ₩22.22 million per month (based on simple capital gains).
The approximately 14% increase in value compared to the purchase price is interpreted as a combined result of the consistent upward trend in real estate values in the Cheongdam-dong area and the excellent location and utility value of the building.
Value Assessment in the Context of the 2019 Market
In April 2019, this building was traded for ₩6.5 billion, forming a price of ₩125.66 million per pyeong, which falls within the upper price range in Cheongdam-dong, Gangnam-gu. Considering its land area of 51.73 pyeong and building area of 143.09 pyeong, it could be classified as a small 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 Hakdong Sageori and Apgujeong Rodeo Station. Its frontage on a 2-lane road would have made it suitable for small shops or high-end residential use.
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 Hakdong Sageori and 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 28, 2025:
- Applying a 20% growth rate to ₩125.66 million/pyeong from 2019 results in approximately ₩150.79 million/pyeong.
- Applying a 30% growth rate results in approximately ₩163.35 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩150 million and ₩163 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 2-lane road near Hakdong Sageori and Apgujeong Rodeo Station offers excellent transportation accessibility and is highly advantageous for attracting floating populations in 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 small commercial and high-end residential use ensures consistent rental demand. Its high utility for high-end facilities, reflecting Cheongdam-dong's characteristics, makes it very attractive.
- Relatively New Construction: Completed in 2003, 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 in Gangnam near Hakdong Sageori and Apgujeong Rodeo Station, combined with its relatively new construction, demonstrates the potential for generating stable capital gains.
- Importance of Road Conditions: A building fronting a 2-lane road, with excellent visibility and accessibility, offers high utility for new construction of retail shops or high-end residential units, serving as a basis for generating stable rental income.
- Abundant Rental Demand: The demand from high-end commercial businesses and residents around Hakdong Sageori and 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, 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.
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