Analysis of Gangnam-gu Yeoksam-dong 720-4,5 Building Sale Case: 2019 Transaction at ₩44 Billion, What's Its Current Value?
Hello. Yeoksam-dong in Gangnam-gu, the heart of Korea's business and home to numerous high-end commercial facilities, particularly along the core Teheran-ro area, has consistently been highly valued and attracted investor attention. Today, we will analyze a 2019 sale case of a large building near Seolleung Station, exploring its investment value through past transaction history, its current (as of August 28, 2025) value changes, and the underlying factors contributing to its real estate value appreciation.
Yeoksam-dong Building Overview: ₩44 Billion Transaction in June 2019
First, let's look at the key information for this building.
- Location: 720-4,5 Yeoksam-dong, Gangnam-gu, Seoul, Republic of Korea
- Nearest Subway Station: Seolleung Station (Excellent accessibility)
- Transaction Date: June 2019
- Sale Price: ₩44 billion
- Land Price: ₩217.75 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 202.07 pyeong (approx. 668㎡)
- Building Area: 1,878.81 pyeong (approx. 6,211㎡)
- Zoning Classification: General Commercial Zone
- Floors: B2 ~ 15F
- Road Conditions: 10-lane main road / 4m two-sided road (Overwhelming accessibility and visibility)
- Completion Year: May 27, 1993
- Official Land Price (at the time): Approx. ₩127.80 million/pyeong (approx. 1.70 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.
- November 2009: Sold for ₩27.8 billion (₩137.58 million per pyeong, ₩14.8 million per pyeong of gross floor area).
- June 2019: Sold for ₩44 billion (₩217.75 million per pyeong, ₩23.42 million per pyeong of gross floor area) after approximately 11 years of ownership.
It recorded remarkable capital gains during the 11-year holding period:
- Generated ₩16.2 billion in capital gains over 11 years.
- This translates to approximately ₩1.47272 billion annually, or about ₩122.73 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 Teheran-ro area of Yeoksam-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 ₩44 billion, forming a price of ₩217.75 million per pyeong, which represents a top-tier price range in Teheran-ro, Yeoksam-dong, Gangnam-gu. Considering its land area of 202.07 pyeong and building area of 1,878.81 pyeong, it could be classified as a large commercial building. Its location in a General Commercial Zone provides excellent commercial utilization potential, and its price fully reflected the maximized transportation and business premiums near Seolleung Station.
Notably, its condition of fronting a 10-lane main road and being accessible from a 4m two-sided road provided overwhelming commercial accessibility and visibility, which would have contributed significantly to its high valuation at the time. The completion year of 1993 suggests potential for additional value enhancement through future large-scale remodeling or reconstruction.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Yeoksam-dong in Gangnam-gu has seen continuous price appreciation since 2019, driven by the sustained business revitalization around Seolleung Station and major development prospects such as the Teheran-ro Redevelopment Project. It is estimated that the per-pyeong price of large commercial buildings in the Gangnam area (including Yeoksam-dong) has increased by an average of 25% to 40% during this period. Teheran-ro, in particular, is an area where value appreciation has been remarkable, with even cases of sales reaching ₩700 million per pyeong, making it one of the highest-priced areas in Korea.
Applying this growth rate to the 2019 land price, we can estimate its current value as of August 28, 2025:
- Applying a 25% growth rate to ₩217.75 million/pyeong from 2019 results in approximately ₩272.19 million/pyeong.
- Applying a 40% growth rate results in approximately ₩304.35 million/pyeong.
Therefore, the land price of this building could potentially be valued between the upper ₩270 million range and the lower ₩300 million range 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 Yeoksam-dong building:
- Optimal Location: Its location on a 10-lane main road near Seolleung Station offers excellent transportation accessibility and is integrated into the core business area of Teheran-ro, ensuring stable floating populations and business demand.
- Zoning Utilization: Classified as a General Commercial Zone, it can be utilized for various commercial purposes such as retail, offices, and medical facilities, maximizing rental income.
- Reconstruction/Remodeling Potential: Despite being an older building completed in 1993, its excellent location and large area make it highly likely to attract demand for value enhancement through future remodeling or reconstruction.
- Local Development Prospects: The Teheran-ro Redevelopment Project and revitalization of the commercial area around Seolleung Station are strong prospects driving the long-term value appreciation of this building.
Investment Implications and Precautions
This case presents the following important implications for investors:
- Success of Long-Term Investment: The enormous capital gains of ₩16.2 billion over 11 years illustrate how much profit long-term investment in large buildings in core Gangnam areas can yield.
- Power of Prime Location: A building fronting a 10-lane main road and a corner position, with excellent visibility and accessibility, serves as a basis for generating top-tier rental rates and stable rental income.
- Potential for Diverse Uses: Due to its classification as a General Commercial Zone, additional profit can be expected through various uses when reconstructed.
However, being an older building (completed in 1993), a meticulous review of the estimated costs and permitting process for large-scale remodeling or reconstruction is necessary.
Conclusion: Gangnam Yeoksam-dong Building, The Apex of Unchanging Investment Value
The Gangnam-gu Yeoksam-dong building sale case clearly demonstrates the unchanging value of Korea's premier business district and the potential of large building investments. Its excellent location, versatile usability, and long-term development prospects combine to make it a core investment destination with expected continuous value appreciation.
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