Analysis of Songpa-gu Seokchon-dong 213, 213-12 Building Sale Case: 2019 Transaction at ₩10.8735 Billion, What's Its Current Value?
Hello. Seokchon-dong in Songpa-gu, Seoul, with its ancient tombs and traces of Baekje history, harmonizes with the core commercial district and residential environment of the Jamsil area. Today, we will analyze a building sale case in Seokchon-dong, exploring its investment value through past transaction history, its current (as of August 29, 2025) value changes, and the underlying factors contributing to its real estate value appreciation.
Seokchon-dong Building Overview: ₩10.8735 Billion Transaction in June 2019
First, let's look at the key information for this building.
- Location: 213, 213-12 Seokchon-dong, Songpa-gu, Seoul, Republic of Korea
- Nearest Subway Station: Seokchongobun Station (Excellent accessibility)
- Transaction Date: June 2019
- Sale Price: ₩10.8735 billion
- Land Price: ₩50.00 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 217.47 pyeong (approx. 718.9㎡)
- Building Area: 512.08 pyeong (approx. 1,693㎡)
- Zoning Classification: General Residential Zone 3
- Floors: B1 ~ 5F
- Road Conditions: 4-lane road × 8m × 4m three-sided corner (Overwhelming accessibility and visibility)
- Completion Year: February 1, 1984
- Official Land Price (at the time): Approx. ₩28.03 million/pyeong (approx. 1.78 times lower than land price)
Past Transaction History and Sale Profit Analysis
This building is a case that consistently proved its value and generated profits through multiple sales.
- November 2006: Sold for ₩5.83 billion (₩26.81 million per pyeong).
- September 2015: Sold for ₩8.385 billion (₩38.56 million per pyeong).
- June 2019: Sold for ₩10.8735 billion (₩50.00 million per pyeong) after approximately 5 years of ownership.
Notably, it recorded significant capital gains during a relatively short holding period of approximately 5 years from 2015 to 2019.
- Generated ₩2.4885 billion in capital gains over 5 years.
- This translates to approximately ₩497.7 million annually, or about ₩41.48 million per month (based on simple capital gains).
These capital gains are interpreted as a combined result of the upward trend in real estate values in the Seokchon-dong area of Songpa-gu and the excellent location and utility value of the building.
Value Assessment in the Context of the 2019 Market
In June 2019, this building was traded for ₩10.8735 billion, forming a price of ₩50.00 million per pyeong, which falls within the upper price range in Seokchon-dong, Songpa-gu. Considering its land area of 217.47 pyeong and building area of 512.08 pyeong, it could be classified as a large building. Although its location in a General Residential Zone 3 might have imposed some limitations on commercial use, its price fully reflected the overwhelming transportation premium near Seokchongobun Station.
Notably, its three-sided corner location at the intersection of a 4-lane road, an 8m road, and a 4m road would have acted as a strong point for its excellent visibility and commercial accessibility. The completion year of 1984 suggests potential for value enhancement through future reconstruction or large-scale remodeling.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Seokchon-dong in Songpa-gu has seen continuous price appreciation since 2019, driven by the revitalization of the commercial district around Seokchongobun Station, stable real estate demand in the central Jamsil area, and various development prospects such as the Songpa District Redevelopment Project. It is estimated that the per-pyeong price of commercial real estate in Songpa-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 29, 2025:
- Applying a 20% growth rate to ₩50.00 million/pyeong from 2019 results in approximately ₩60.00 million/pyeong.
- Applying a 30% growth rate results in approximately ₩65.00 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩60 million and ₩65 million per pyeong in 2025, which would lead to a very 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 Seokchon-dong building:
- Optimal Location: Its three-sided corner location at the intersection of a 4-lane road, an 8m road, and a 4m road near Seokchongobun Station offers excellent transportation accessibility and is highly advantageous for attracting floating populations. This reflects the value of Songpa-gu's central commercial district.
- Zoning Utilization: Although it is classified as a General Residential Zone 3 with some restrictions on commercial use changes, its suitability for educational institutions, small commercial facilities, and residential use ensures consistent rental demand.
- Reconstruction/Remodeling Potential: Despite being an older building completed in 1984, its excellent three-sided corner location and sufficient land area make it highly likely to attract demand for value enhancement through future reconstruction or large-scale remodeling.
- Local Development Prospects: The Songpa 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 Seokchongobun 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 three-sided corner where a 4-lane road and two other roads meet, 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 Seokchongobun Station allows for expectations of stable rental income.
However, being an older building (completed in 1984), 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 3.
Conclusion: Songpa-gu Seokchon-dong Building, An Investment with Excellent Location and Development Potential
The Songpa-gu Seokchon-dong building sale case clearly demonstrates how excellent location, regional characteristics, and future development prospects can combine to maximize real estate value. Seokchon-dong is still considered an attractive investment destination with high growth potential and unchanging prime location value.
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