Analysis of Gangnam-gu Sinsa-dong 589-20 Building Sale Case: 2019 Transaction at ₩7.5 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: ₩7.5 Billion Transaction in July 2019

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

Location: 589-20 Sinsa-dong, Gangnam-gu, Seoul, Republic of Korea
Nearest Subway Station: Apgujeong Station (Excellent accessibility)
Transaction Date: July 2019
Sale Price: ₩7.5 billion
Land Price: ₩66.70 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 112.44 pyeong (approx. 371.7 sq. meters)
Building Area: 75.54 pyeong (approx. 250 sq. meters)
Zoning Classification: General Residential Zone 2
Floors: B1 ~ 2F
Road Conditions: Fronting a 10m road
Completion Year: September 9, 1975
Official Land Price (at the time): Approx. ₩35.70 million/pyeong (approx. 1.87 times lower than land price)

Value Assessment in the Context of the 2019 Market

In July 2019, this building was traded for ₩7.5 billion, forming a price of ₩66.70 million per pyeong, which falls within the mid-to-upper price range in Sinsa-dong, Gangnam-gu. Considering its land area of 112.44 pyeong and building area of 75.54 pyeong, it is classified as a small building, but it reflected the premium of the high-end commercial district near Apgujeong Station. Although its location in a General Residential Zone 2 might have imposed some limitations on commercial use, its frontage on a 10m road enhanced its commercial utilization potential and hinted at remodeling or reconstruction potential.

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% or more 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 ₩66.70 million/pyeong from 2019 results in approximately ₩80.04 million/pyeong.
Applying a 30% growth rate results in approximately ₩86.71 million/pyeong.

Therefore, the land price of this building could potentially be valued between ₩80 million and ₩87 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 10m 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 2 with some development restrictions, its suitability for small commercial or residential use, coupled with its older construction year, suggests high potential for value enhancement through future reconstruction or remodeling.
Completion Year: Completed in 1975, it is an older building. However, its land area on a 10m road makes it highly likely to attract redevelopment 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 remodeling.
Power of Road Conditions: A building on a 10m 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 residential areas around Apgujeong Station allows for expectations of stable rental income.

However, given that it's an older building (completed in 1975), 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 2.

Conclusion: Gangnam Sinsa-dong Small Building, Still Shining with Reconstruction Investment Value

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

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Analysis of Gangnam-gu Sinsa-dong 589-20 Building Sale Case: 2019 Transaction at ₩7.5 Billion, What's Its Current Value?