Analysis of Seocho-gu Seocho-dong 1550-12 Building Sale Case: 2019 Transaction at ₩7.7 Billion, What's Its Current Value?
Hello. When analyzing the investment value of the real estate market, there is no data as useful as past transaction cases. Today, we will conduct a meticulous analysis of a building sale case located in Seocho-dong, Seocho-gu, Seoul, to explore market trends, factors driving value appreciation, and changes in its current (2025) value.
Seocho-dong Building Overview: ₩7.7 Billion Transaction in April 2019
First, let's look at the basic information for this building.
- Location: 1550-12 Seocho-dong, Seocho-gu, Seoul, Republic of Korea
- Nearest Subway Station: Seocho Station (Excellent accessibility)
- Transaction Date: April 2019
- Sale Price: ₩7.7 billion
- Land Price: ₩66.46 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 115.86 pyeong (approx. 383 sq. meters)
- Building Area: 311.26 pyeong (approx. 1,029 sq. meters)
- Zoning Classification: General Residential Zone 2
- Floors: B1 ~ 6F
- Road Conditions: 6m × 6m corner (Excellent commercial accessibility)
- Completion Year: May 4, 2012
- Estimated Official Land Price (at the time): Approx. ₩26.27 million/pyeong (approx. 2.53 times lower than land price)
Past Transaction History and Sale Profit Analysis
This building has an interesting transaction history since its new construction in 2012.
- March 2011: Sold as a new construction site for ₩4.53 billion (₩39.10 million per pyeong). New construction completed on May 4, 2012.
- April 2017: Sold as an office building for ₩7.3 billion (₩63.01 million per pyeong).
- April 2019: Sold for ₩7.7 billion (₩66.46 million per pyeong) after approximately 2 years of ownership.
Notably, the sale profit between 2017 and 2019 is significant:
- Generated ₩400 million in sale profit over 2 years.
- This translates to ₩200 million annually, or approximately ₩16.67 million per month (based on simple sale profit).
This can be attributed to the stable value appreciation in the Seocho-gu real estate market and the building's rental profitability.
Value Assessment in the Context of the 2019 Market
In April 2019, this building was traded for ₩7.7 billion, forming a price of ₩66.46 million per pyeong. This falls within the upper price range in Seocho-gu. Considering its land area of 115.86 pyeong and building area of 311.26 pyeong, it could be classified as a medium-sized small building (꼬마빌딩, kkomabil-ding) or a small office/commercial building. Its corner location (6m × 6m) would have enhanced its commercial utilization value.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Seocho-gu, a central area of Seoul, has seen continuous price appreciation since 2019, driven by development prospects around Seocho Station (redevelopment, commercial revitalization, etc.) and stable real estate demand in the heart of Seoul. It is estimated that the per-pyeong price of real estate in major areas of Seoul 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 in 2025:
- Applying a 20% growth rate to ₩66.46 million/pyeong from 2019 results in approximately ₩79.75 million/pyeong.
- Applying a 30% growth rate results in approximately ₩86.39 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩79 million and ₩86 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 at a 6m × 6m corner near Seocho Station, it boasts excellent 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, its suitability for office use and small-scale commercial purposes allows for stable value retention.
- Relatively New Construction: Completed in 2012, it still has a low risk of obsolescence and its clean exterior and interior condition make it attractive for tenants.
- Past Successful Sale Profit: The ₩400 million sale profit generated over 2 years demonstrates the building's consistent value appreciation within market trends.
Investment Implications and Precautions
This case provides the following implications for investors:
- Value Appreciation Potential: The approximately 70% value increase from 2011 to 2019 demonstrates the robust growth potential of small buildings in prime areas of Seocho-gu.
- Advantage of Corner Location: The 6m × 6m corner provides excellent visibility, which is a major factor enhancing commercial tenancy or parking utilization.
- Stable Rental Demand: The area around Seocho Station has abundant office and commercial demand, allowing for expectations of stable rental income.
However, the land use restrictions in the General Residential Zone 2 could be a limitation for long-term development plans, and the lack of specific data on rental yield suggests that additional verification is needed before investing.
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