Analysis of Gangnam-gu Sinsa-dong 581-10 Building Sale Case: 2019 Transaction at ₩8.56 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: ₩8.56 Billion Transaction in July 2019
First, let's look at the key information for this building.
- Location: 581-10 Sinsa-dong, Gangnam-gu, Seoul, Republic of Korea
- Nearest Subway Station: Apgujeong Station (Excellent accessibility)
- Transaction Date: July 2019
- Sale Price: ₩8.56 billion
- Land Price: ₩122.29 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 70.00 pyeong (approx. 231.4 sq. meters)
- Building Area: 250.05 pyeong (approx. 827 sq. meters)
- Zoning Classification: General Residential Zone 3
- Floors: B1 ~ 6F
- Road Conditions: Fronting a 6m road
- Completion Year: November 7, 1989
- Official Land Price (at the time): Approx. ₩70.78 million/pyeong (approx. 1.73 times lower than land price)
Past Transaction History and Sale Profit Analysis
This building has an interesting transaction history that consistently proved its value.
- May 2016: Sold for ₩7.45 billion (₩106.42 million per pyeong).
- July 2019: Sold for ₩8.56 billion (₩122.29 million per pyeong) after approximately 3 years of ownership.
It recorded a significant sale profit during the 3-year holding period:
- Generated ₩1.11 billion in sale profit over 3 years.
- This translates to approximately ₩370 million annually, or about ₩30.83 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 the Sinsa-dong area and the excellent location and utility value of the building.
Value Assessment in the Context of the 2019 Market
In July 2019, this building was traded for ₩8.56 billion, forming a price of ₩122.29 million per pyeong, which falls within the upper price range in Sinsa-dong, Gangnam-gu. Considering its land area of 70.00 pyeong and building area of 250.05 pyeong, it could be classified as a small-to-medium sized commercial building. Although its location in a General Residential Zone 3 might have imposed some limitations on commercial use, its price fully reflected the overwhelming 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 ₩122.29 million/pyeong from 2019 results in approximately ₩146.75 million/pyeong.
- Applying a 30% growth rate results in approximately ₩158.98 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩146 million and ₩159 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 frontage on a 6m road near Apgujeong Station offers 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 3 with some development restrictions, its suitability for small commercial and high-end office use ensures consistent rental demand. This reflects the complex demand for residential and commercial spaces favored by high-income individuals even within Gangnam.
- Completion Year: Completed in 1989, it is an older building. However, its premium location value near Apgujeong Station makes it highly likely to attract redevelopment or large-scale remodeling interest.
- 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:
- Reconstruction/Remodeling Potential: Older buildings with premium locations near Apgujeong Station and appropriate land sizes have significant potential for capital gains through reconstruction or large-scale remodeling.
- Power of Road Conditions: A building on a 6m road 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 commercial businesses and offices around Apgujeong Station allows for expectations of stable rental income.
However, given that it's an older building (completed in 1989), a meticulous review of the reconstruction approval process and associated costs is necessary. Prudence is also advised in setting the development direction due to the land use restrictions in the General Residential Zone 3.
Conclusion: Gangnam Sinsa-dong Small Building, Unchanged Premium Value and Reconstruction Potential
The Sinsa-dong, Gangnam-gu building sale case clearly demonstrates how excellent location, regional characteristics, and consistent value appreciation, along with reconstruction potential, can combine to maximize real estate value. Sinsa-dong is still considered an attractive investment opportunity with high growth potential and unchanging premium value.
#SinsaDongBuilding #GangnamGuRealEstate #SmallBuildingInvestment #ApgujeongStation #RealEstateInvestment #SinsaDong #RealEstateMarketPrice #SmallBuilding #RealEstateValue #RealEstateAnalysis #GangnamCommercialRealEstate #RealEstateMarketTrends #RealEstateFinancialTech #ApgujeongReconstruction #GarosuGil
