Analysis of Seongdong-gu Oksu-dong Building Sale Case (265-1): 2019 Transaction at ₩8.3 Billion, What's Its Current Value?
Hello. When understanding real estate market trends, specific past transaction cases serve as crucial reference points. Today, we aim to gain insights by analyzing the 2019 sale case of a building located in Oksu-dong, Seongdong-gu, Seoul, examining its value at that time and its current changes.
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)
- Building Area: 222.25 pyeong (approx. 735 sq. meters)
- Zoning Classification: General Residential Zone 2
- Floors: 4 stories above ground
- Road Conditions: Fronting a 4-lane road (Good traffic and accessibility)
- Completion Year: June 15, 2006
- Official Land Price (at the time): Approx. ₩17.45 million/pyeong (approx. 2.70 times higher 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. This was considered a mid-to-upper range price in the Oksu-dong real estate market at the time. Considering its land area (176.36 pyeong) and building area (222.25 pyeong), it would have been categorized as a substantial 'small building' (꼬마빌딩, kkomabil-ding) with a balanced land and building value.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
It's noteworthy that the per-pyeong price of apartments and commercial real estate in Seongdong-gu, Seoul, has increased by an average of about 20% to 30% over the approximately 5-6 years since 2019, according to market analysis. By applying this growth rate, we can estimate the 2019 land price in today's terms.
- Applying a 20% growth rate to the ₩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 be estimated at ₩56 million to ₩61 million per pyeong in 2025. This would have led to a significant increase in the overall sale price as well.
Key Factors Driving Real Estate Value Appreciation
Behind this value increase are several positive factors inherent to the Oksu-dong building:
- Excellent Location: Its adjacency to a 4-lane road near Oksu Station provides excellent accessibility. This is a crucial factor directly influencing commercial vitality and increasing rental income potential.
- Stability of Zoning: While its classification as a General Residential Zone 2 might limit commercial use changes, its suitability for stable residential demand and small-scale commercial establishments provides a basis for maintaining consistent value.
- Future Development Prospects: The active atmosphere of remodeling within Oksu-dong itself, combined with the vibrant redevelopment movements in nearby Seongsu-dong, holds long-term potential for further increasing Oksu-dong's value. This indirectly has a positive impact on this building's value appreciation.
Implication: The Dynamism of the Seongdong-gu Real Estate Market
This case of the Oksu-dong building clearly demonstrates the dynamism of the real estate market in Seongdong-gu, particularly in Oksu-dong. It provides insight that small buildings in well-located areas with development potential can expect consistent value appreciation.
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