Analysis of Gangnam-gu Sinsa-dong 543 Building Sale Case: 2019 Transaction at ₩20.75 Billion, What's Its Current Value?
Hello. Sinsa-dong's Garosu-gil and Serosu-gil areas in Gangnam-gu, leading fashion and lifestyle trends in Korea, are consistently regarded as symbols of premier real estate, attracting intense investor interest. Today, we will conduct an in-depth analysis of a large building sale case near Sinsa Station and Serosu-gil in 2019, 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.
Sinsa-dong Building Overview: ₩20.75 Billion Transaction in June 2019
First, let's look at the key information for this building.
- Location: 543 Sinsa-dong, Gangnam-gu, Seoul, Republic of Korea
- Nearest Subway Station: Sinsa Station (Near Serosu-gil, Excellent accessibility)
- Transaction Date: June 2019
- Sale Price: ₩20.75 billion
- Land Price: ₩94.20 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 220.28 pyeong (approx. 728.2㎡)
- Building Area: 721.39 pyeong (approx. 2,385㎡)
- Zoning Classification: General Residential Zone 2
- Floors: B1 ~ 6F
- Road Conditions: 8m × 6m corner (Overwhelming accessibility and visibility)
- Completion Year: October 24, 1988
- Official Land Price (at the time): Approx. ₩42.25 million/pyeong (approx. 2.23 times lower than land price)
Past Transaction History and Sale Profit Analysis
This building is an interesting case that realized significant value appreciation through long-term ownership.
- September 2013: Sold for ₩13.7 billion (₩62.19 million per pyeong).
- June 2019: Sold for ₩20.75 billion (₩94.20 million per pyeong) after approximately 7 years of ownership.
It recorded remarkable capital gains during the 7-year holding period:
- Generated ₩7.05 billion in capital gains over 7 years.
- This translates to approximately ₩1.00714 billion annually, or about ₩83.93 million per month (based on simple capital gains).
These capital gains are interpreted as a combined result of the upward trend in real estate values in the core Serosu-gil area of Sinsa-dong and the investment appeal of large buildings.
Value Assessment in the Context of the 2019 Market
In June 2019, this building was traded for ₩20.75 billion, forming a price of ₩94.20 million per pyeong, which falls within the upper price range in Sinsa-dong, Gangnam-gu. Considering its land area of 220.28 pyeong and building area of 721.39 pyeong, it could be classified as a 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 Sinsa Station and Serosu-gil.
Notably, its 8m × 6m corner location would have acted as a strong point for its excellent visibility and commercial accessibility. The completion year of 1988 suggests potential for additional value enhancement through future large-scale remodeling or reconstruction.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Sinsa-dong in Gangnam-gu has seen continuous price appreciation since 2019, driven by the sustained revitalization of the commercial district around Sinsa Station and Serosu-gil, redevelopment (e.g., Sinsa 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 29, 2025:
- Applying a 20% growth rate to ₩94.20 million/pyeong from 2019 results in approximately ₩113.04 million/pyeong.
- Applying a 30% growth rate results in approximately ₩122.46 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩113 million and ₩122 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 Sinsa-dong building:
- Optimal Location: Its corner location at an 8m × 6m intersection near Sinsa Station and Serosu-gil 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.
- Reconstruction/Remodeling Potential: Despite being an older building completed in 1988, its premium location value near Sinsa Station and Serosu-gil and sufficient land area make it highly likely to attract demand for value enhancement through future reconstruction or large-scale remodeling.
- Local Development Prospects: The revitalization of the Serosu-gil commercial area and Sinsa District Redevelopment 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 Sinsa Station and Serosu-gil and being an older building with sufficient land area combine to demonstrate the potential for significant capital gains through reconstruction or remodeling.
- Power of Corner Location: A building on an 8m × 6m 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 Sinsa Station and Serosu-gil 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. Additionally, as an older building (completed in 1988), a meticulous review of the estimated costs and permitting process for reconstruction or remodeling is necessary.
Conclusion: Gangnam Sinsa-dong Building, A Symbol of Unchanging Premium and Reconstruction Potential
The Sinsa-dong, Gangnam-gu building sale case clearly demonstrates how excellent location, regional characteristics, and future development prospects can combine to maximize real estate value. Sinsa-dong is still considered a core investment destination with high growth potential and unchanging investment appeal.
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