Analysis of Gangnam-gu Yeoksam-dong 720-7 Building Sale Case: The Building So Ji-sub Also Chose! 2019 Transaction at ₩31 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 its past transaction history, which includes celebrity involvement, its current (as of August 29, 2025) value changes, and the underlying factors contributing to its real estate value appreciation.
Yeoksam-dong Building Overview: ₩31 Billion Transaction in July 2019
First, let's look at the key information for this building.
- Location: 720-7 Yeoksam-dong, Gangnam-gu, Seoul, Republic of Korea (iTower / Formerly Yoochang Building)
- Nearest Subway Station: Seolleung Station (Excellent accessibility)
- Transaction Date: July 2019
- Sale Price: ₩31 billion
- Land Price: ₩298.86 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 103.73 pyeong (approx. 342.9㎡)
- Building Area: 1,002.03 pyeong (approx. 3,312㎡)
- Zoning Classification: General Commercial Zone
- Floors: B3 ~ 15F
- Road Conditions: 10-lane main road × 8-lane road corner (Overwhelming accessibility and visibility)
- Completion Year: February 5, 2008
- Official Land Price (at the time): Approx. ₩141.39 million/pyeong (approx. 2.11 times lower than land price)
The Building Chosen by So Ji-sub and Min Byung-chul! Past Transaction History and Sale Profit Analysis
This building is not just a simple sale case; it has also attracted attention as an investment property for famous personalities.
- July 2011: Purchased for ₩27 billion (₩260.29 million per pyeong) by **Min Byung-chul**, a well-known English educator at the time.
- June 2018: Purchased for ₩29.3 billion (₩282.46 million per pyeong) by actor **So Ji-sub**.
- July 2019: Sold for ₩31 billion (₩298.86 million per pyeong) after approximately 1 year of ownership.
Notably, So Ji-sub achieved significant capital gains by selling it in just 1 year and 1 month.
- Generated ₩1.7 billion in capital gains over approximately 1 year and 1 month.
- This translates to approximately ₩141.67 million per month (based on simple capital gains).
These short-term 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 high marketability of this building. Although issues like vacancy rates were mentioned at the time, it demonstrates that considerable profits could still be earned in a short period.
Value Assessment in the Context of the 2019 Market
In July 2019, this building was traded for ₩31 billion, forming a price of ₩298.86 million per pyeong, which represents a top-tier price range in Teheran-ro, Yeoksam-dong, Gangnam-gu. Considering its land area of 103.73 pyeong and building area of 1,002.03 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 corner location at the intersection of a 10-lane main road and an 8-lane road would have acted as a strong point for its overwhelming commercial accessibility and visibility, which would have contributed significantly to its high valuation at the time. The fact that it was completed in 2008, making it a relatively new building, also increased its investment value.
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 commercial buildings in the Gangnam area (including Yeoksam-dong) has increased by an average of 20% to 40% 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 ₩298.86 million/pyeong from 2019 results in approximately ₩358.63 million/pyeong.
- Applying a 30% growth rate results in approximately ₩388.51 million/pyeong.
Therefore, the land price of this building could potentially be valued in the upper ₩350 million range to the upper ₩380 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 corner location at the intersection of a 10-lane main road and an 8-lane 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.
- Relatively New Construction: Completed in 2008, it still has a low risk of obsolescence, and its clean exterior and modern interior condition are highly advantageous for attracting tenants.
- 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 Celebrity Investment: The fact that even short-term investments by celebrities yielded high returns demonstrates the investment value of large buildings in prime locations.
- 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.
- Appeal of Relatively New Buildings: Buildings with a relatively new completion year have less burden for future remodeling/reconstruction and can expect stable rental income.
However, due to the high sale price, maintenance and management costs can be substantial, and the variability of rental demand for commercial properties should always be considered as a risk factor.
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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