Analysis of Seocho-gu Seocho-dong 1714-19 Building Sale Case: 2019 Transaction at ₩13.5 Billion, What's Its Current Value?
Hello. The area around Gyodae Station in Seocho-gu, the heart of Korea's legal and educational sectors, where high-end residential and commercial properties coexist, is always highly valued and attracts investors' attention. Today, we will conduct an in-depth analysis of a building sale case in Seocho-dong, Seocho-gu, exploring the market context at that time, its current (as of August 27, 2025) value changes, and the underlying factors contributing to its real estate value appreciation.
Seocho-dong Building Overview: ₩13.5 Billion Transaction in July 2019
First, let's look at the key information for this building.
- Location: 1714-19 Seocho-dong, Seocho-gu, Seoul, Republic of Korea
- Nearest Subway Station: Gyodae Station (Excellent accessibility)
- Transaction Date: July 2019
- Sale Price: ₩13.5 billion
- Land Price: ₩99.68 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 135.43 pyeong (approx. 447.7 sq. meters)
- Building Area: 516.41 pyeong (approx. 1,707 sq. meters)
- Zoning Classification: General Residential Zone 2
- Floors: B2 ~ 5F
- Road Conditions: 6-lane road × 2-lane road corner (Excellent commercial accessibility)
- Completion Year: November 19, 1988
- Official Land Price (at the time): Approx. ₩60.17 million/pyeong (approx. 1.66 times lower than land price)
Value Assessment in the Context of the 2019 Market
In July 2019, this building was traded for ₩13.5 billion, forming a price of ₩99.68 million per pyeong, which falls within the upper price range in Seocho-dong, Seocho-gu. Considering its land area of 135.43 pyeong and building area of 516.41 pyeong, it could be classified as a medium-to-large building. Although its location in a General Residential Zone 2 might have imposed some limitations on commercial use, its price fully reflected the overwhelming transportation premium near Gyodae Station.
Notably, its corner location at the intersection of a 6-lane and a 2-lane road offers excellent commercial accessibility, which would have been a major factor contributing to its high valuation at the time. The completion year of 1988 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 Gyodae Station, stable real estate demand in central Seoul, and various redevelopment prospects such as the Seocho District Urban Redevelopment Project. It is estimated that the per-pyeong price of commercial real estate in the Gangnam area (including 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 27, 2025:
- Applying a 20% growth rate to ₩99.68 million/pyeong from 2019 results in approximately ₩119.62 million/pyeong.
- Applying a 30% growth rate results in approximately ₩129.58 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩119 million and ₩129 million 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 Seocho-dong building:
- Optimal Location: Its corner location at the intersection of a 6-lane and a 2-lane road near Gyodae Station offers excellent transportation accessibility and is highly advantageous for attracting floating populations. This reflects the value of Seocho-gu's prime commercial district.
- Zoning Utilization: Although it is classified as a General Residential Zone 2 with some restrictions on commercial use changes, its suitability for small commercial, residential, and 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 1988, its excellent corner location and sufficient land area make it highly likely to attract demand for value enhancement through future reconstruction or major remodeling.
- Local Development Prospects: The Seocho District Urban Redevelopment Project and revitalization of the surrounding commercial area 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 Gyodae 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 6-lane × 2-lane 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 Gyodae Station allows for expectations of stable rental income.
However, being an older building (completed in 1988), 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 Gyodae 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. Gyodae Station is still considered an attractive investment destination with high growth potential and unchanging prime location value.
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