Analysis of Gangnam-gu Sinsa-dong 636-7 Building Sale Case: 2019 Transaction at ₩22.8 Billion, What's Its Current Value?
Hello. Apgujeong Rodeo Station area in Sinsa-dong, Gangnam-gu, is recognized as a symbol of premier real estate and a hub of trends and luxury, attracting intense investor interest. Today, we will conduct an in-depth analysis of a large building sale case in Sinsa-dong, Gangnam-gu, exploring the market context at that time, and its current (as of August 29, 2025) value changes, along with the underlying factors contributing to its real estate value appreciation.
Sinsa-dong Building Overview: ₩22.8 Billion Transaction in June 2019
First, let's look at the key information for this building.
- Location: 636-7 Sinsa-dong, Gangnam-gu, Seoul, Republic of Korea
- Nearest Subway Station: Apgujeong Rodeo Station (Excellent accessibility)
- Transaction Date: June 2019
- Sale Price: ₩22.8 billion
- Land Price: ₩125.96 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 181.02 pyeong (approx. 598.4㎡)
- Building Area: 670.62 pyeong (approx. 2,216.93㎡)
- Zoning Classification: General Residential Zone 3
- Floors: B1 ~ 6F
- Road Conditions: 8-lane road × 6m corner (Overwhelming accessibility and visibility)
- Completion Year: November 10, 1990
- Official Land Price (at the time): Approx. ₩79.34 million/pyeong (approx. 1.59 times lower than land price)
Value Assessment in the Context of the 2019 Market
In June 2019, this building was traded for ₩22.8 billion, forming a price of ₩125.96 million per pyeong, which falls within the top-tier price range in Sinsa-dong, Gangnam-gu. Considering its land area of 181.02 pyeong and building area of 670.62 pyeong, it could be classified as a large 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 of the high-end commercial district near Apgujeong Rodeo Station.
Notably, its corner location at the intersection of an 8-lane road and a 6m road would have acted as a strong point for its excellent visibility and commercial accessibility. The completion year of 1990 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, Gangnam-gu, has seen continuous price appreciation since 2019, driven by the sustained revitalization of the high-end commercial district around Apgujeong Rodeo Station, redevelopment (e.g., Apgujeong 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 ₩125.96 million/pyeong from 2019 results in approximately ₩151.15 million/pyeong.
- Applying a 30% growth rate results in approximately ₩163.75 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩151 million and ₩163 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 the intersection of an 8-lane road and a 6m road near Apgujeong Rodeo Station 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 3 with some restrictions on commercial use changes, its suitability for high-end office use or small commercial properties ensures consistent rental demand. Its high utility for high-end commercial facilities, reflective of its proximity to Cheongdam-dong, makes it very attractive.
- Reconstruction/Remodeling Potential: Despite being an older building completed in 1990, its premium location value near Apgujeong Rodeo Station 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 Apgujeong District Redevelopment and commercial revitalization 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 Apgujeong Rodeo Station and being a relatively new building combine to demonstrate the potential for generating stable capital gains.
- Power of Corner Location: A building at an 8-lane road and 6m road 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 Apgujeong Rodeo 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 3. Additionally, as an older building (completed in 1990), a meticulous review of the estimated costs and permitting process for reconstruction or remodeling is necessary.
Conclusion: Gangnam Sinsa-dong Small 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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