Analysis of Seocho-gu Seocho-dong 1467-1 Building Sale Case: 2019 Transaction at ₩5.98 Billion, What's Its Current Value?
Hello. When it comes to understanding real estate market trends, there's no more definitive data than actual transaction cases. Today, we delve into the depth of the real estate market by analyzing a 2019 sale case of a building located in Seocho-dong, Seocho-gu, Seoul, examining the market situation at that time and its current changes.
Seocho-dong Building Overview: ₩5.98 Billion Transaction in May 2019
First, let's look at the key information for this building.
- Location: 1467-1 Seocho-dong, Seocho-gu, Seoul, Republic of Korea
- Nearest Subway Station: Bangbae Station (Excellent accessibility)
- Transaction Date: May 2019
- Sale Price: ₩5.98 billion
- Land Price: ₩40.62 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 147.23 pyeong (approx. 486.7 sq. meters)
- Building Area: 413.35 pyeong (approx. 1,366 sq. meters)
- Zoning Classification: General Residential Zone 2
- Floors: B1 ~ 5F
- Road Conditions: Fronting a 4-lane road + 2-lane road corner (Excellent commercial accessibility)
- Completion Year: January 9, 1990
- Official Land Price (at the time): Approx. ₩24.81 million/pyeong (approx. 1.64 times lower than land price)
Value Assessment in the Context of the 2019 Market
In May 2019, this building was traded for ₩5.98 billion, forming a price of ₩40.62 million per pyeong. This falls within the mid-to-upper price range in Seocho-gu, suggesting its value was well-recognized.
Considering its land area of 147.23 pyeong and building area of 413.35 pyeong, it could be classified as a relatively large 'small building' (꼬마빌딩, kkomabil-ding) or a small office/commercial building. Its corner location at the intersection of a 4-lane and 2-lane road would have particularly enhanced its commercial viability.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Seocho-gu, being a key district in Seoul, has experienced consistent price appreciation since 2019, fueled by development prospects around Bangbae Station (redevelopment, commercial revitalization) and stable real estate demand in central Seoul. Generally, the per-pyeong price of apartments and commercial real estate in major areas of Seoul during this period is estimated to have increased by an average of 20% to 30%.
Applying this growth rate to the 2019 land price, we can estimate the current value in 2025:
- Applying a 20% growth rate to ₩40.62 million/pyeong from 2019 results in approximately ₩48.74 million/pyeong.
- Applying a 30% growth rate results in approximately ₩52.80 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩48 million and ₩53 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:
- Excellent Location: Located near Bangbae Station, it offers superb accessibility to transportation and commercial areas. This is a crucial factor reflecting the stable real estate demand in Seocho-gu.
- Zoning Utilization: Although its General Residential Zone 2 classification might limit commercial use changes, it is suitable for a harmonious blend of residential and small-scale commercial facilities, allowing for stable rental demand.
- Reconstruction/Remodeling Potential: Completed in 1990, the building is over 35 years old and may be experiencing aging. This implies the potential for future value appreciation through remodeling or reconstruction.
- Excellent Road Conditions: Its corner location at the intersection of a 4-lane and 2-lane road is advantageous for commercial tenants or securing parking, enhancing the building's utility value.
- Local Development Prospects: The area around Bangbae Station is expected to see continuous redevelopment projects and commercial revitalization, which will further solidify the building's value in the long term.
Implication: The Robustness of the Seocho-gu Real Estate Market
This Seocho-gu Seocho-dong building sale case demonstrates the robust potential for value appreciation in prime real estate areas of Seoul. It reconfirms that small buildings in well-located areas with stable demand and development prospects hold high investment value.
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