Analysis of Gangnam-gu Dogok-dong 456-7 Building Sale Case: 2019 Transaction at ₩5 Billion, What's Its Current Value?
Hello. Dogok-dong in Gangnam-gu, one of Seoul's major commercial areas and a highly regarded residential district, has always seen its real estate command high value. Today, we will conduct an in-depth analysis of a building sale case located in Dogok-dong in 2019, to explore the market context at that time, its current (2025) value changes, and the underlying factors contributing to its real estate value appreciation.
Dogok-dong Building Overview: ₩5 Billion Transaction in March 2019
First, let's look at the key information for this building.
- Location: 456-7 Dogok-dong, Gangnam-gu, Seoul, Republic of Korea
- Nearest Subway Station: Maebong Station (Excellent accessibility)
- Transaction Date: March 2019
- Sale Price: ₩5 billion
- Land Price: ₩62.05 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 80.59 pyeong (approx. 266.4 sq. meters)
- Building Area: 217.62 pyeong (approx. 719 sq. meters)
- Zoning Classification: General Residential Zone 2
- Floors: B1 ~ 4F
- Road Conditions: 6m × 4m corner (Excellent commercial accessibility)
- Completion Year: December 30, 2011
- Official Land Price (at the time): Approx. ₩23.26 million/pyeong (approx. 2.67 times lower than land price)
Past Transaction History and Sale Profit Analysis
This building has consistently shown stable value appreciation since its completion in 2011.
- June 2012: Sold for ₩3.325 billion (₩41.26 million per pyeong).
- March 2019: Sold for ₩5 billion (₩62.05 million per pyeong) after approximately 7 years of ownership.
Notably, it recorded a significant sale profit over the 7-year holding period:
- Generated ₩1.675 billion in sale profit over 7 years.
- This translates to approximately ₩239 million annually, or about ₩19.94 million per month (based on simple sale profit).
This sale profit is interpreted as a combined result of the upward trend in real estate values in Dogok-dong, Gangnam-gu, and the stable rental profitability of the building.
Value Assessment in the Context of the 2019 Market
In March 2019, this building was traded for ₩5 billion, forming a price of ₩62.05 million per pyeong, which falls within the mid-to-upper price range in Dogok-dong, Gangnam-gu. Considering its land area of 80.59 pyeong and building area of 217.62 pyeong, it was valued as a small building (꼬마빌딩, kkomabil-ding) or a property suitable for stable officetel/commercial use, and its corner location (6m × 4m) would have been highly recognized for its excellent visibility and commercial utilization value.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Gangnam-gu Dogok-dong has seen continuous price appreciation since 2019, driven by development prospects around Maebong Station (redevelopment, commercial revitalization, etc.) and stable real estate demand as a core area of Gangnam. It is generally estimated that the per-pyeong price of commercial real estate in Seoul's Gangnam area has increased by an average of 20% to 30% over the past 5-6 years.
By applying this growth rate to the 2019 land price, we can estimate its current value in 2025:
- Applying a 20% growth rate to ₩62.05 million/pyeong from 2019 results in approximately ₩74.46 million/pyeong.
- Applying a 30% growth rate results in approximately ₩80.67 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩74 million and ₩81 million per pyeong in 2025, which would lead to a 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 Dogok-dong building:
- Optimal Location: Its location at a 6m × 4m corner near Maebong Station offers excellent transportation accessibility and is advantageous for attracting floating populations, thereby increasing its commercial value. This reflects the stable demand in Dogok-dong.
- Stability of Zoning: While its General Residential Zone 2 classification may impose some restrictions on commercial use changes, its suitability for office use or small-scale commercial purposes ensures stable rental demand.
- Relatively New Construction: Completed in 2011, it has a low risk of obsolescence and boasts a modern exterior and facilities, which are advantageous for attracting tenants.
- Past Successful Sales Record: The high sale profit recorded upon its resale in 2019 after purchase in 2012 is an important indicator that proves this building's investment value.
Investment Implications and Precautions
This case clearly demonstrates how investing in small buildings in Gangnam-gu Dogok-dong can yield both stable capital gains and profits simultaneously.
- Stable Value Appreciation: An approximate 50% value increase over 7 years suggests the robust growth potential of small buildings in prime Gangnam areas.
- Advantage of Corner Location: Buildings situated on a corner offer excellent visibility and accessibility, which are advantageous for maximizing rental income.
- Abundant Rental Demand: The demand from offices and commercial businesses around Maebong Station creates expectations for stable rental income.
However, the limitations on development value due to its General Residential Zone 2 classification and the lack of specific rental yield data are areas that require in-depth analysis before making an investment decision.
Conclusion: Gangnam Dogok-dong Small Building, Unchanged Investment Appeal
The Dogok-dong, Gangnam-gu building sale case clearly demonstrates the investment appeal of small buildings with excellent location and consistent value appreciation. I hope this analysis has been helpful in gaining a deeper understanding of the real estate market.
#GangnamGuBuilding #DogokDongRealEstate #SmallBuildingSale #RealEstateInvestment #MaebongStation #RealEstateMarketPrice #SmallBuilding #RealEstateValue #RealEstateAnalysis #GangnamCommercialRealEstate #RealEstateMarketTrends #RealEstateFinancialTech
댓글 쓰기