Analysis of Seocho-gu Yangjae-dong 10-70 Building Sale Case: 2019 Transaction at ₩3.2 Billion, What's Its Current Value?
Hello. The area around Yangjae Station, a central business and residential hub in Gangnam, Seoul, and an evolving R&D special zone, is always highly valued and attracts investors' attention. Today, we will conduct an in-depth analysis of a building sale case in Yangjae-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.
Yangjae-dong Building Overview: ₩3.2 Billion Transaction in July 2019
First, let's look at the key information for this building.
- Location: 10-70 Yangjae-dong, Seocho-gu, Seoul, Republic of Korea
- Nearest Subway Station: Yangjae Station (Excellent accessibility)
- Transaction Date: July 2019
- Sale Price: ₩3.2 billion
- Land Price: ₩63.27 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 50.58 pyeong (approx. 167.2 sq. meters)
- Building Area: 126.56 pyeong (approx. 418 sq. meters)
- Zoning Classification: General Residential Zone 2
- Floors: B1 ~ 4F
- Road Conditions: Fronting a 6m road
- Completion Year: October 16, 1995
- Official Land Price (at the time): Approx. ₩30.72 million/pyeong (approx. 2.06 times lower than land price)
Value Assessment in the Context of the 2019 Market
In July 2019, this building was traded for ₩3.2 billion, forming a price of ₩63.27 million per pyeong, which falls within the mid-to-upper price range in Yangjae-dong, Seocho-gu. Considering its land area of 50.58 pyeong and building area of 126.56 pyeong, it could be classified as a small building. Although its location in a General Residential Zone 2 might have imposed some limitations on commercial use, its price fully reflected the excellent transportation premium near Yangjae Station. Its frontage on a 6m road would have made it suitable for small shops or residential use.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Yangjae-dong in Seocho-gu has seen continuous price appreciation since 2019, driven by the revitalization of the commercial district around Yangjae Station and major development prospects such as the large-scale Yangjae R&CD Special Zone development. It is estimated that the per-pyeong price of commercial 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 27, 2025:
- Applying a 20% growth rate to ₩63.27 million/pyeong from 2019 results in approximately ₩75.92 million/pyeong.
- Applying a 30% growth rate results in approximately ₩82.25 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩75 million and ₩82 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 Yangjae-dong building:
- Optimal Location: Its frontage on a 6m road near Yangjae Station offers excellent transportation accessibility and forms the central commercial district of Yangjae-dong, ensuring consistent floating population.
- 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 ensures consistent rental demand.
- Reconstruction/Remodeling Potential: Despite being an older building completed in 1995, its premium location value near Yangjae Station makes it highly likely to attract demand for value enhancement through future remodeling or reconstruction.
- Local Development Prospects: The Yangjae District Urban Redevelopment Project and large-scale R&CD Special Zone development 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 Yangjae Station ensures stable potential for capital gains, despite its age, due to its continued high market value.
- Power of Road Conditions: A building on a 6m road 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 and residents around Yangjae Station allows for expectations of stable rental income.
However, being an older building (completed in 1995), 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 Yangjae Station Building, An Investment with Shining Growth Potential
The Seocho-gu Yangjae-dong building sale case clearly demonstrates how excellent location, regional characteristics, and future development prospects can combine to maximize real estate value. Yangjae Station is still considered an attractive investment destination with high growth potential and unchanging prime location value.
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