Analysis of Seocho-gu Yangjae-dong 124 Building Sale Case: 2019 Transaction at ₩4.54 Billion, The Effect of Remodeling?
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, focusing on the interesting context of **value appreciation through remodeling**, exploring its current (as of August 28, 2025) value changes and the underlying factors contributing to its real estate value appreciation.
Yangjae-dong Building Overview: ₩4.54 Billion Transaction in July 2019
First, let's look at the key information for this building.
- Location: 124 Yangjae-dong, Seocho-gu, Seoul, Republic of Korea
- Nearest Subway Station: Yangjae Station (Excellent accessibility)
- Transaction Date: July 2019
- Sale Price: ₩4.54 billion
- Land Price: ₩58.90 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 77.08 pyeong (approx. 254.8 sq. meters)
- Building Area: 223.53 pyeong (approx. 739 sq. meters)
- Zoning Classification: General Residential Zone 3
- Floors: B1 ~ 5F
- Road Conditions: 8m × 6m corner (Excellent commercial accessibility)
- Completion Year: December 14, 1989
- Official Land Price (at the time): Approx. ₩18.99 million/pyeong (approx. 3.10 times lower than land price)
Past Transaction History and Remodeling Effect Analysis
This building is an interesting case that significantly increased its value through remodeling, beyond simple market appreciation.
- February 2016: Purchased for ₩2.5 billion (₩32.43 million per pyeong).
- Extensive **remodeling** was carried out after purchase.
- July 2019: Sold for ₩4.54 billion (₩58.90 million per pyeong) after approximately 4 years of ownership.
It recorded remarkable capital gains during the 4-year holding period:
- Generated ₩2.04 billion in capital gains over 4 years.
- This translates to approximately ₩510 million annually, or about ₩42.5 million per month (based on simple capital gains).
The approximately 82% increase in value compared to the purchase price shows that, in addition to the general real estate appreciation in Yangjae-dong, **direct value enhancement efforts through remodeling** had a significant impact. It demonstrates an effective investment strategy for increasing the value of older buildings.
Value Assessment in the Context of the 2019 Market
In July 2019, this building was traded for ₩4.54 billion, forming a price of ₩58.90 million per pyeong, which falls within the upper price range in Yangjae-dong, Seocho-gu. Considering its land area of 77.08 pyeong and building area of 223.53 pyeong, it could be classified as a small-to-medium sized building. Although its location in a General Residential Zone 3 might have imposed some limitations on commercial use, its price fully reflected the excellent transportation premium near Yangjae Station, coupled with the enhanced marketability of the remodeled building. Notably, its 8m × 6m corner location also provides excellent visibility and accessibility.
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&D 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 28, 2025:
- Applying a 20% growth rate to ₩58.90 million/pyeong from 2019 results in approximately ₩70.68 million/pyeong.
- Applying a 30% growth rate results in approximately ₩76.57 million/pyeong.
Therefore, the land price of this building could potentially be valued between the early ₩70 million range and the mid-to-high ₩70 million range 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 corner location at an 8m × 6m intersection 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 3 with some restrictions on commercial use changes, its suitability for small commercial, residential, and office use ensures consistent rental demand.
- Remodeling Effect: The extensive remodeling of the older building (completed in 1989) significantly improved its marketability and value, positively impacting its sale price.
- Local Development Prospects: The Yangjae District Redevelopment Project and large-scale R&D 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 Enhancement Through Remodeling: It clearly demonstrates that even an older building can generate significantly higher sale prices and profits compared to its purchase price through strategic remodeling.
- Power of Corner Location: A building on an 8m × 6m corner, with excellent visibility and accessibility, offers high utility for new construction/remodeling 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, prudence is advised in setting the development direction due to the land use restrictions in the General Residential Zone 3, and a meticulous review of the estimated costs and permitting process for remodeling or future reconstruction is necessary.
Conclusion: Seocho-gu Yangjae Station Building, A Model of Successful Remodeling Investment
The Seocho-gu Yangjae-dong building sale case clearly demonstrates how excellent location, value enhancement through remodeling, 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 the ability to generate additional profit through remodeling investment.
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