Analysis of Gangnam-gu Dogok-dong 456-8 Building Sale Case: 2019 Transaction at ₩4.33 Billion, What's Its Current Value?
Hello. Dogok-dong in Gangnam, Seoul, a representative high-end residential area with a stable business environment, particularly around Maebong Station, is consistently highly valued and attracts investor attention. Today, we will conduct an in-depth analysis of a building sale case in Dogok-dong, Gangnam-gu, exploring its investment value through past transaction history, its current (as of August 29, 2025) value changes, and the underlying factors contributing to its real estate value appreciation.
Dogok-dong Building Overview: ₩4.33 Billion Transaction in June 2019
First, let's look at the key information for this building.
- Location: 456-8 Dogok-dong, Gangnam-gu, Seoul, Republic of Korea
- Nearest Subway Station: Maebong Station (Excellent accessibility)
- Transaction Date: June 2019
- Sale Price: ₩4.33 billion
- Land Price: ₩53.75 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 80.56 pyeong (approx. 266.3㎡)
- Building Area: 178.77 pyeong (approx. 591㎡)
- Zoning Classification: General Residential Zone 2
- Floors: B1 ~ 4F
- Road Conditions: 6m × 4m corner (Good commercial accessibility)
- Completion Year: April 3, 1990
- Official Land Price (at the time): Approx. ₩23.26 million/pyeong (approx. 2.31 times lower than land price)
Past Transaction History and Sale Profit Analysis
This building is an interesting case where its value more than doubled in 7 years.
- April 2012: Sold for ₩2.12 billion (₩26.32 million per pyeong).
- June 2019: Sold for ₩4.33 billion (₩53.75 million per pyeong) after approximately 8 years of ownership.
It recorded remarkable capital gains during the 8-year holding period:
- Generated ₩2.21 billion in capital gains over 8 years.
- This translates to approximately ₩276.25 million annually, or about ₩23.02 million per month (based on simple capital gains).
The approximately 104% increase in value compared to the purchase price is interpreted as a combined result of the upward trend in real estate values in the Dogok-dong area and the excellent location and utility value of the building.
Value Assessment in the Context of the 2019 Market
In June 2019, this building was traded for ₩4.33 billion, forming a price of ₩53.75 million per pyeong, which falls within the mid-to-upper price range in Dogok-dong, Gangnam-gu. Considering its land area of 80.56 pyeong and building area of 178.77 pyeong, it could be classified as a medium-sized building. Although its location in a General Residential Zone 2 might have imposed some limitations on commercial use, its price fully reflected the transportation premium near Maebong Station. Its 6m × 4m corner location would have made it suitable for small shops or residential use.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Dogok-dong in Gangnam-gu has seen continuous price appreciation since 2019, driven by the revitalization of the commercial district around Maebong Station, redevelopment projects (e.g., Dogok District Redevelopment), and its proximity to Daechi-dong's cram school district. 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 29, 2025:
- Applying a 20% growth rate to ₩53.75 million/pyeong from 2019 results in approximately ₩64.50 million/pyeong.
- Applying a 30% growth rate results in approximately ₩69.87 million/pyeong.
Therefore, the land price of this building could potentially be valued between the mid-₩60 million range and the upper ₩60 million range 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 Dogok-dong building:
- Optimal Location: Its corner location at an intersection of a 6m and a 4m road near Maebong Station offers good transportation accessibility and ensures stable rental demand based on the surrounding high-end residential area.
- Zoning Utilization: Although it is classified as a General Residential Zone 2 with some restrictions on commercial use changes, its suitability for small shops and residential use ensures consistent rental demand.
- Reconstruction/Remodeling Potential: Despite being an older building completed in 1990, its corner location and premium location value near Maebong Station make it highly likely to attract demand for value enhancement through future reconstruction or large-scale remodeling.
- Local Development Prospects: The Dogok District Redevelopment and revitalization of the surrounding commercial area 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:
- Success of Long-Term Investment: An increase in market value of over 100% in 8 years demonstrates the potential for stable long-term investment success in small buildings located in prime residential areas within Gangnam.
- Power of Corner Location: A building on a 6m × 4m corner, with excellent visibility and accessibility, offers high utility for new construction of retail shops or multi-family housing, serving as a basis for generating stable rental income.
- Abundant Rental Demand: The demand from high-end residents around Maebong Station and the characteristics of nearby cram school districts allow for expectations of stable rental income.
However, being an older building (completed in 1990), a meticulous review of the estimated costs and permitting process for reconstruction or remodeling is necessary. Prudence is also advised in setting the development direction due to the land use restrictions in the General Residential Zone 2.
Conclusion: Gangnam Dogok-dong Building, A Symbol of Unchanging Residential Premium and Reconstruction Potential
The Gangnam-gu Dogok-dong building sale case clearly demonstrates how excellent location, regional characteristics, and future development prospects can combine to maximize real estate value. Dogok-dong is still considered an attractive investment destination with high growth potential and unchanging premium value.
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