Analysis of Songpa-gu Geoyeo-dong 21-16,17 Building Sale Case: 2019 Transaction at ₩4.9 Billion, What's the Current Value of This New Construction Site?

Hello. Geoyeo-dong in Songpa-gu, emerging as a new residential hub in southeastern Seoul, has garnered attention in recent years due to active redevelopment and commercial revitalization. Today, we will analyze a 2019 sale case of a building in Geoyeo-dong, delving into its potential as a new construction site, the market context at that time, and the changes in its current (2025) value.

Geoyeo-dong Building Overview: ₩4.9 Billion Transaction in March 2019

First, let's look at the key information for this building (site).

Location: 21-16,17 Geoyeo-dong, Songpa-gu, Seoul, Republic of Korea
Nearest Subway Station: Geoyeo Station (Excellent accessibility)
Transaction Date: March 2019
Sale Price: ₩4.9 billion
Land Price: ₩39.74 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 123.30 pyeong (approx. 407.6 sq. meters)
Building Area: 78.73 pyeong (approx. 260 sq. meters)
Zoning Classification: Quasi-Residential Zone
Floors: 1 story above ground
Road Conditions: 8m × 6m corner
Completion Year: April 7, 1994
Estimated Official Land Price (at the time): Approx. ₩17.20 million/pyeong (approx. 2.31 times lower than land price) *(※ This value is estimated by reverse calculation based on the provided ratio. Official land prices are generally lower than market prices.)*
Remarks: Explicitly stated as sold for new construction site (reflecting possibility of demolishing existing building and building new)

Value Assessment in the Context of the 2019 Market

In March 2019, this site was traded for ₩4.9 billion, forming a price of ₩39.74 million per pyeong, which falls within the middle price range in Geoyeo-dong, Songpa-gu. Although there was a small existing building with a land area of 123.30 pyeong and a building area of 78.73 pyeong, the remark stating it was sold as a 'new construction site' is important.

This suggests that the investor purchased the property based on the land's potential rather than the existing building's value, planning to maximize its commercial or residential value by utilizing the locational advantage of an 8m × 6m corner and building a new structure. Various zoning changes within the quasi-residential area would also have been considered.

Current (2025) Market Price Estimate: How Much Has Its Value Increased?

Geoyeo-dong in Songpa-gu has seen continuous price appreciation since 2019, ranking among the top areas in Seoul due to overwhelming development prospects such as commercial revitalization around Geoyeo Station and large-scale redevelopment projects in the Geoyeo-Macheon district. It is estimated that the per-pyeong price of commercial real estate in Songpa-gu has increased by an average of 25% to 35% during this period.

Applying this growth rate to the 2019 land price, we can estimate its current value in 2025:

Applying a 25% growth rate to ₩39.74 million/pyeong from 2019 results in approximately ₩49.67 million/pyeong.
Applying a 35% growth rate results in approximately ₩53.65 million/pyeong.

Therefore, the land price of this site could potentially be valued between ₩49 million and ₩53 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 Geoyeo-dong site:

Optimal Location: Its location at an 8m × 6m corner near Geoyeo Station offers excellent subway accessibility, along with superb visibility, which enhances its commercial utilization value. This makes it advantageous for commercial revitalization once a new building is constructed.
Zoning Potential: Classified as a Quasi-Residential Zone, while apartment construction is difficult, it can be used for various purposes such as neighborhood living facilities, officetels, and multi-family housing when newly built, maximizing rental income.
Local Development Prospects: The Geoyeo-Macheon District redevelopment project and the commercial revitalization along Cheonho-daero are powerful prospects that drive the long-term value of Geoyeo-dong as a whole. The creation of new residential complexes will increase floating populations and stimulate surrounding commercial areas.
Value as a New Construction Site: The existing building was aged and sold reflecting its redevelopment value, signifying an opportunity for investors to create value through new construction.

Investment Implications and Precautions

This case presents the following important implications for investors:

Value Creation Through New Construction: This is a good example of an investment strategy focused on the potential of the land and maximizing profit through new construction rather than the value of an older existing building.
Utilization of Corner Location: A corner lot is advantageous for various rental income models, such as retail shops or multi-family housing, and can command higher value upon future sale.
Stable Rental Demand: The abundant residential and commercial demand around Geoyeo Station allows for expectations of stable rental income once the new building is completed.

However, it is necessary to meticulously review the land use restrictions within the quasi-residential zone and the construction regulations (building coverage ratio, floor area ratio) that will apply to new construction. Cost and risk management during the construction period are also important.

Conclusion: Songpa-gu Geoyeo-dong New Construction Site, An Investment with Rich Growth Potential

The Songpa-gu Geoyeo-dong building sale case demonstrates how excellent location, development potential, and value creation through new construction can combine to lead to explosive real estate value appreciation. Geoyeo-dong is still considered an attractive investment destination with high growth potential.

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Analysis of Songpa-gu Geoyeo-dong 21-16,17 Building Sale Case: 2019 Transaction at ₩4.9 Billion, What's the Current Value of This New Construction Site?