Analysis of Jongno-gu Jugyo-dong 248 Building Sale Case: 2019 Transaction at ₩6.8 Billion, What's Its Current Value?
Hello. Jongno-gu, where Seoul's history and culture breathe alongside modern business, especially Jugyo-dong near Euljiro 4-ga Station, always presents a dynamic real estate market. Today, we will conduct an in-depth analysis of a building sale case located here in Jugyo-dong in 2019, exploring the market context at that time, its current (2025) value changes, and the underlying factors contributing to its real estate value appreciation.
Jugyo-dong Building Overview: ₩6.8 Billion Transaction in July 2019
First, let's look at the key information for this building.
- Location: 248 Jugyo-dong, Jongno-gu, Seoul, Republic of Korea
- Nearest Subway Station: Euljiro 4-ga Station (Excellent accessibility)
- Transaction Date: July 2019
- Sale Price: ₩6.8 billion
- Land Price: ₩55.29 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 123.00 pyeong (approx. 406.6 sq. meters)
- Building Area: 447.98 pyeong (approx. 1,481 sq. meters)
- Zoning Classification: General Commercial Zone
- Floors: B1 ~ 5F
- Road Conditions: 6m × 4m corner (Excellent commercial accessibility)
- Completion Year: July 4, 1985
- Remodeling: 2018
- Official Land Price (at the time): Approx. ₩28.37 million/pyeong (approx. 1.95 times lower than land price)
Value Assessment in the Context of the 2019 Market
In July 2019, this building was traded for ₩6.8 billion, forming a price of ₩55.29 million per pyeong, which falls within the mid-to-upper price range in Jongno-gu Jugyo-dong. Considering its land area of 123.00 pyeong and building area of 447.98 pyeong, it could be classified as a medium-sized commercial building. Notably, its location at a 6m × 4m corner and its remodeling in 2018 enhanced the building's value, suggesting its commercial utilization potential was excellent.
At that time, Jugyo-dong, adjacent to the Euljiro commercial district, was an area with strong demand for office and retail commercial spaces, maintaining consistent investment interest.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Jongno-gu Jugyo-dong has continued to see price appreciation since 2019 due to the sustained revitalization of the commercial district near Euljiro 4-ga Station and various urban regeneration projects like the Seoul 'Dasi-Sewoon' Project and development near DDP. During this period, the per-pyeong price of commercial real estate in the General Commercial Zone of Jongno-gu is estimated to have increased by an average of 25% to 35%.
Applying this growth rate to the 2019 land price, we can estimate its current value in 2025:
- Applying a 25% growth rate to ₩55.29 million/pyeong from 2019 results in approximately ₩69.11 million/pyeong.
- Applying a 35% growth rate results in approximately ₩74.64 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩69 million and ₩75 million per pyeong in 2025, which would lead to a very substantial increase in its overall market price.
Key Factors Driving Real Estate Value Appreciation
Behind this value appreciation are several positive factors inherent to the Jugyo-dong building:
- Excellent Location: Its location at a 6m × 4m corner near Euljiro 4-ga Station offers superb subway accessibility and is highly advantageous for attracting floating populations, benefiting from the prime commercial area of Jongno-gu.
- Optimal Zoning: Classified as a General Commercial Zone, it benefits from a Building Coverage Ratio of 70% and a Floor Area Ratio of 800% (though 600% might apply under Seoul's Four Gates area regulations), indicating high development value through future new construction and expansion.
- Remodeling Effect: Despite being completed in 1985, a major remodeling in 2018 modernized the building's exterior and interior, significantly increasing its rental appeal. This is a good example of overcoming the limitations of an older building and creating new value.
- Abundant Rental Demand: The demand for office and various commercial facilities around Euljiro 4-ga Station ensures stable rental income.
- Urban Regeneration Development Prospects: The Dongdaemun-Euljiro regeneration project, centered around DDP, is a key prospect that further drives the long-term value appreciation of this building.
Investment Implications and Precautions
This case presents the following important implications for investors:
- Value Enhancement Through Remodeling: It demonstrates that even an older building can significantly increase its value through strategic remodeling investment.
- Power of Corner Location: A building located on a corner offers excellent visibility and accessibility, which are advantageous for maximizing rental income through retail leasing or various other uses.
- Development Potential: The characteristics of being a General Commercial Zone allow for expectations of additional value appreciation through future new construction.
However, the structural limitations due to being a building completed in 1985 still exist, and regulations such as floor area ratio limits should be carefully reviewed for large-scale new construction.
Conclusion: Jongno-gu Jugyo-dong Small Building, Growing with Urban Regeneration Expectations
The Jugyo-dong, Jongno-gu building sale case clearly demonstrates how excellent location, strategic remodeling, and surrounding development prospects can combine to maximize real estate value. It can be said to be an attractive investment opportunity with the potential to grow within the trend of urban regeneration.
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