Analysis of Seocho-gu Seocho-dong 1428-4 Building Sale Case: 2019 Transaction at ₩4.5 Billion, What's Its Current Value?
Hello. Seocho-gu, an area in Seoul whose real estate value is highly regarded, comparable to Gangnam, is known for its excellent transportation hubs like Nambu Bus Terminal Station. Today, we will analyze a building sale case in Seocho-dong, exploring the market context at that time, its current (as of August 28, 2025) value changes, and the underlying factors contributing to its real estate value appreciation.
Seocho-dong Building Overview: ₩4.5 Billion Transaction in April 2019
First, let's look at the key information for this building.
- Location: 1428-4 Seocho-dong, Seocho-gu, Seoul, Republic of Korea
- Nearest Subway Station: Nambu Bus Terminal Station (Excellent accessibility)
- Transaction Date: April 2019
- Sale Price: ₩4.5 billion
- Land Price: ₩44.90 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 100.22 pyeong (approx. 331.3㎡)
- Building Area: 263.43 pyeong (approx. 871㎡)
- Zoning Classification: General Residential Zone 2
- Floors: B1 ~ 4F
- Road Conditions: 10m × 6m corner (Excellent commercial accessibility)
- Completion Year: September 1, 1989
- Official Land Price (at the time): Approx. ₩21.49 million/pyeong (approx. 2.09 times lower than land price)
Value Assessment in the Context of the 2019 Market
In April 2019, this building was traded for ₩4.5 billion, forming a price of ₩44.90 million per pyeong, which falls within the mid-to-upper price range in Seocho-dong, Seocho-gu. Considering its land area of 100.22 pyeong and building area of 263.43 pyeong, it could be classified as a medium-sized building. Although its location in a General Residential Zone 2 might have imposed some limitations on commercial use, its price fully reflected the transportation premium near Nambu Bus Terminal Station.
Notably, its corner location at the intersection of a 10m and a 6m road would have acted as a strong point for its excellent visibility and commercial accessibility. The completion year of 1989 suggests potential for value enhancement through future new construction or remodeling.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Seocho-dong in Seocho-gu has seen continuous price appreciation since 2019, driven by the revitalization of the commercial district around Nambu Bus Terminal Station and major development prospects such as the Seocho District Redevelopment Project. It is estimated that the per-pyeong price of real estate in Seocho-gu has increased by an average of 20% to 30% during this period.
Applying this growth rate to the 2019 land price, we can estimate its current value as of August 28, 2025:
- Applying a 20% growth rate to ₩44.90 million/pyeong from 2019 results in approximately ₩53.88 million/pyeong.
- Applying a 30% growth rate results in approximately ₩58.37 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩53.8 million and ₩58.3 million per pyeong in 2025, which would lead to a 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 Seocho-dong building:
- Optimal Location: Its corner location at the intersection of a 10m and a 6m road near Nambu Bus Terminal Station offers excellent transportation accessibility and is highly suitable for various small commercial facilities or residential use. This reflects the value of Seocho-gu's central commercial district.
- Zoning Utilization: Although it is classified as a General Residential Zone 2 with some restrictions on commercial use changes, its suitability for educational institutions, small shops, and residential/office use, given the concentration of educational institutions and offices in the area, ensures consistent rental demand.
- Reconstruction/Remodeling Potential: Despite being an older building completed in 1989, its excellent corner location 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 Seocho District Redevelopment Project and revitalization of the commercial area around Nambu Bus Terminal 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:
- Value of Premium Location: Its prime location near Nambu Bus Terminal Station ensures stable potential for capital gains, despite its age, due to its continued high market value.
- Power of Road Conditions: A building at a 10m × 6m corner, with excellent visibility and accessibility, 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 offices, educational institutions, and residents around Nambu Bus Terminal Station allows for expectations of stable rental income.
However, being an older building (completed in 1989), a meticulous review of the estimated costs and permitting process for reconstruction or remodeling is necessary. Prudence is also advised in setting the development direction due to the land use restrictions in the General Residential Zone 2.
Conclusion: Seocho-gu Nambu Bus Terminal Station Building, Future Value Shining in a Prime Location
The Seocho-gu Seocho-dong building sale case clearly demonstrates how excellent location, regional characteristics, and future development prospects can combine to maximize real estate value. Nambu Bus Terminal Station is still considered an attractive investment destination with high growth potential and unchanging prime location value.
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