Analysis of Gangnam-gu Sinsa-dong 566-29 Building Sale Case: 2019 Transaction at ₩5.25 Billion, What's Its Current Value?

Hello. Sinsa-dong, a representative fashion and cultural hub in Gangnam, Seoul, and the area around Apgujeong Station, consistently attract investors' attention with their recognized high value. Today, we will conduct an in-depth analysis of a building sale case in Sinsa-dong, Gangnam-gu, exploring the market context at that time, its current (2025) value changes, and the underlying factors contributing to its real estate value appreciation.

Sinsa-dong Building Overview: ₩5.25 Billion Transaction in April 2019

First, let's look at the key information for this building.

Location: 566-29 Sinsa-dong, Gangnam-gu, Seoul, Republic of Korea
Nearest Subway Station: Apgujeong Station (Excellent accessibility)
Transaction Date: April 2019
Sale Price: ₩5.25 billion
Land Price: ₩89.60 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 58.59 pyeong (approx. 193.7 sq. meters)
Building Area: 214.33 pyeong (approx. 709 sq. meters)
Zoning Classification: General Residential Zone 2
Floors: B1 ~ 6F
Road Conditions: Fronting a 6m road
Completion Year: May 4, 2012
Official Land Price (at the time): Approx. ₩30.56 million/pyeong (approx. 2.93 times lower than land price)

Value Assessment in the Context of the 2019 Market

In April 2019, this building was traded for ₩5.25 billion, forming a price of ₩89.60 million per pyeong, which falls within the upper price range in Sinsa-dong, Gangnam-gu. Considering its land area of 58.59 pyeong and building area of 214.33 pyeong, it would have been valued as a small commercial building or a building usable for mixed residential and commercial purposes.

Although its location in a General Residential Zone 2 might have imposed some limitations on commercial use, its price fully reflected the premium location value near Apgujeong Station. Its frontage on a 6m road would have made it suitable for small shops or office use.

Current (2025) Market Price Estimate: How Much Has Its Value Increased?

Sinsa-dong, Gangnam-gu, has seen continuous price appreciation since 2019, driven by the sustained revitalization of the commercial district around Apgujeong Station, its characteristics as a high-end residential area, and the iconic value of Garosu-gil. 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% during this period.

Applying this growth rate to the 2019 land price, we can estimate its current value in 2025:

Applying a 20% growth rate to ₩89.60 million/pyeong from 2019 results in approximately ₩107.52 million/pyeong.
Applying a 30% growth rate results in approximately ₩116.48 million/pyeong.

Therefore, the land price of this building could potentially be valued between ₩107 million and ₩116 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: Located near Apgujeong Station, it boasts excellent transportation accessibility and is integrated into Sinsa-dong's upscale commercial district, ensuring a stable floating population.
Zoning Utilization: Although it is classified as a General Residential Zone 2 with some development restrictions, its suitability for small commercial shops and offices ensures consistent rental demand. This reflects the complex demand for residential and commercial spaces favored by high-income individuals even within Gangnam.
Relatively New Construction: Completed in 2012, it has a low risk of obsolescence and maintains a clean exterior and interior condition, which is advantageous for attracting tenants.
Local Development Prospects: The redevelopment of nearby Apgujeong Hyundai Apartments and continuous commercial revitalization are major prospects driving the long-term value of Sinsa-dong as a whole.

Investment Implications and Precautions

This case presents the following important implications for investors:

Stable Value Appreciation: The combination of a prime, premium location in Gangnam near Apgujeong Station and a relatively new building suggests the potential for stable capital gains.
Importance of Road Conditions: Its frontage on a 6m road enhances its potential for use as small commercial shops or offices, contributing to stable rental income.
Abundant Rental Demand: The demand from high-end commercial businesses and offices around Apgujeong 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 Sinsa-dong Small Building, Unchanged Premium Value

The Sinsa-dong, Gangnam-gu building sale case clearly demonstrates how excellent location, regional characteristics, and consistent value appreciation can combine to maximize real estate value. Sinsa-dong is still considered an attractive investment opportunity with high growth potential and unchanging premium value.

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Analysis of Gangnam-gu Sinsa-dong 566-29 Building Sale Case: 2019 Transaction at ₩5.25 Billion, What's Its Current Value?