Analysis of Seongdong-gu Oksu-dong 265-1 Building Sale Case: 2019 Transaction at ₩8.3 Billion, What's Its Current Value?
Hello. Oksu-dong in Seongdong-gu, Seoul, boasting an excellent location overlooking the Han River, has consistently been highly valued in recent years, drawing investors' attention. Today, we will conduct an in-depth analysis of a building sale case in Oksu-dong, 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.
Oksu-dong Building Overview: ₩8.3 Billion Transaction in June 2019
First, let's look at the key information for this building.
- Location: 265-1 Oksu-dong, Seongdong-gu, Seoul, Republic of Korea
- Nearest Subway Station: Oksu Station (Excellent accessibility)
- Transaction Date: June 2019
- Sale Price: ₩8.3 billion
- Land Price: ₩47.06 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 176.36 pyeong (approx. 583 sq. meters) *(※ The provided data erroneously states 96.9㎡; however, 176.36 pyeong converts to approximately 583㎡, which is accurate.)*
- Building Area: 222.25 pyeong (approx. 735 sq. meters)
- Zoning Classification: General Residential Zone 2
- Floors: G4F
- Road Conditions: Fronting a 4-lane road
- Completion Year: June 15, 2006
- Official Land Price (at the time): Approx. ₩17.45 million/pyeong (approx. 2.70 times lower than land price)
Value Assessment in the Context of the 2019 Market
In June 2019, this building was traded for ₩8.3 billion, forming a price of ₩47.06 million per pyeong, which falls within the mid-to-upper price range in Oksu-dong, Seongdong-gu. Considering its land area of 176.36 pyeong (approx. 583㎡) and building area of 222.25 pyeong (approx. 735㎡), it could be classified as a medium-sized building. Although its location in a General Residential Zone 2 might have imposed some limitations on commercial use, its price fully reflected the transportation premium of Oksu Station's subway area. Its frontage on a 4-lane road, providing excellent accessibility, would have made it suitable for small shops or office use.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Oksu-dong in Seongdong-gu has seen continuous price appreciation since 2019, driven by the revitalization of the commercial district around Oksu Station and major development prospects such as the Oksu District Redevelopment Project. It is estimated that the per-pyeong price of commercial real estate in Seongdong-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 ₩47.06 million/pyeong from 2019 results in approximately ₩56.47 million/pyeong.
- Applying a 30% growth rate results in approximately ₩61.18 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩56 million and ₩61 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 Oksu-dong building:
- Optimal Location: Its frontage on a 4-lane road near Oksu Station offers excellent transportation accessibility and is highly advantageous for attracting floating populations. This reflects the value of Seongdong-gu's central 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 shops and residential use ensures consistent rental demand.
- Relatively New Construction: Completed in 2006, it still has a low risk of obsolescence, and its clean exterior and interior condition are advantageous for attracting tenants.
- Local Development Prospects: The Oksu District 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 Oksu Station demonstrates stable potential for capital gains, despite being a relatively new building, due to its consistent high market value.
- Power of Road Conditions: A building fronting a 4-lane road, 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 residential and commercial demand around Oksu Station allows for expectations of stable rental income.
However, it is important to note that legal review may be required for large-scale commercial expansion due to the land use restrictions in the General Residential Zone 2.
Conclusion: Seongdong-gu Oksu Station Building, An Investment with Expected Steady Value Appreciation
The Seongdong-gu Oksu-dong building sale case clearly demonstrates how excellent location, regional characteristics, and future development prospects can combine to maximize real estate value. Oksu-dong is still considered an attractive investment destination with high growth potential and unchanging prime location value.
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