Analysis of Yangcheon-gu Mok-dong 613-6,7 Building Sale Case: 2019 Transaction at ₩14.5 Billion, What's Its Current Value?
Hello. Mok-dong in Yangcheon-gu, a key residential and commercial area in southwestern Seoul, has always been highly valued for its educational environment and stable living conditions. Today, we will conduct an in-depth analysis of a building sale case located in Mok-dong in 2019, exploring the market context at that time, its current (2025) value changes, and the underlying factors contributing to its real estate value appreciation.
Mok-dong Building Overview: ₩14.5 Billion Transaction in March 2019
First, let's look at the key information for this building.
- Location: 613-6,7 Mok-dong, Yangcheon-gu, Seoul, Republic of Korea
- Nearest Subway Station: Deungchon Station (Excellent accessibility)
- Transaction Date: March 2019
- Sale Price: ₩14.5 billion
- Land Price: ₩53.67 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 270.19 pyeong (approx. 893.2 sq. meters)
- Building Area: 364.80 pyeong (approx. 1,206 sq. meters)
- Zoning Classification: Quasi-Residential Zone
- Floors: B1 ~ 2F
- Road Conditions: 6-lane road × 10m corner (Excellent commercial accessibility)
- Completion Year: September 29, 1982
- Official Land Price (at the time): Approx. ₩28.85 million/pyeong (approx. 1.86 times lower than land price)
Past Transaction History and Sale Profit Analysis
This building experienced a rapid increase in value from its sale in 2013 until 2019.
- April 2013: Sold for ₩7.6 billion (₩28.13 million per pyeong).
- March 2019: Sold for ₩14.5 billion (₩53.67 million per pyeong) after approximately 6 years of ownership.
Notably, it recorded a significant sale profit during the 6-year holding period:
- Generated ₩6.9 billion in sale profit over 6 years.
- This translates to approximately ₩1.15 billion annually, or about ₩95.83 million per month (based on simple sale profit).
This sale profit is interpreted as a combined result of the upward trend in real estate values in the Mok-dong area and the excellent locational characteristics of the building.
Value Assessment in the Context of the 2019 Market
In March 2019, this building was traded for ₩14.5 billion, forming a price of ₩53.67 million per pyeong, which falls within the upper price range in Yangcheon-gu Mok-dong. Considering its land area of 270.19 pyeong and building area of 364.80 pyeong, it could be classified as a medium-sized small building (꼬마빌딩, kkomabil-ding) or a large commercial facility. Its frontage on a 6-lane road and a 10m corner would have maximized its overwhelming visibility and commercial utilization value.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Mok-dong in Yangcheon-gu has seen continuous price appreciation since 2019, driven by development prospects around Deungchon Station (redevelopment, commercial revitalization, etc.) and stable real estate demand in the western Seoul area. It is estimated that the per-pyeong price of commercial real estate in western Seoul 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 in 2025:
- Applying a 20% growth rate to ₩53.67 million/pyeong from 2019 results in approximately ₩64.40 million/pyeong.
- Applying a 30% growth rate results in approximately ₩69.77 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩64 million and ₩70 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 Mok-dong building:
- Optimal Location: Its 10m corner location on a 6-lane main road near Deungchon Station is highly advantageous for attracting floating populations, maximizing its commercial value with excellent visibility and accessibility. This reflects the stable real estate demand in Mok-dong.
- Zoning Potential: Although it is classified as a Quasi-Residential Zone with limited commercial use change possibilities, its suitability for small-scale commercial facilities and offices allows for consistent rental demand.
- Reconstruction/Remodeling Expectations: Completed in 1982, it is an aging building. However, its corner location on a 6-lane main road increases expectations for value appreciation through future reconstruction or large-scale remodeling.
- Past Successful Sale Record: The overwhelming sale profit of ₩6.9 billion over 6 years clearly demonstrates the investment value of this building and the high growth potential of the Mok-dong area.
Investment Implications and Precautions
This case presents the following important implications for investors:
- Rapid Value Appreciation: The approximately 91% value increase over 6 years suggests the explosive growth potential of small buildings in a key area of southwestern Seoul.
- Power of Corner Location: Its optimal location on a 6-lane road with a 10m corner provides a basis for generating profits through various means, such as retail leasing or utilization as a large commercial facility.
- Stable Rental Demand: The office and commercial demand around Deungchon Station allows for expectations of stable rental income.
However, being an aging building and facing zoning restrictions in a quasi-residential area suggests that a thorough review of value enhancement plans through remodeling or redevelopment is necessary for long-term investment.
Conclusion: Yangcheon-gu Mok-dong Small Building, Overwhelming Investment Appeal
The Mok-dong building sale case in Yangcheon-gu clearly demonstrates the appeal of small buildings that can realize excellent location, high growth potential, and successful investment returns simultaneously. I hope this analysis has been helpful in gaining a deeper understanding of the real estate market.
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