Analysis of Yangcheon-gu Sinwol-dong 514-2 Building Sale Case: 2019 Transaction at ₩5.8 Billion, What's Its Current Value?
Hello. Sinwol-dong in Yangcheon-gu, establishing itself as a major residential area in southwestern Seoul, has recently attracted attention due to various development prospects such as the Sinwol-Mok-dong District Redevelopment. Today, we will conduct an in-depth analysis of a building sale case in Sinwol-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.
Sinwol-dong Building Overview: ₩5.8 Billion Transaction in May 2019
First, let's look at the key information for this building.
- Location: 514-2 Sinwol-dong, Yangcheon-gu, Seoul, Republic of Korea
- Nearest Subway Station: Sinjeongnegeori Station (Excellent accessibility)
- Transaction Date: May 2019
- Sale Price: ₩5.8 billion
- Land Price: ₩30.98 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 187.25 pyeong (approx. 619 sq. meters)
- Building Area: 387.20 pyeong (approx. 1,280 sq. meters)
- Zoning Classification: General Residential Zone 3
- Floors: B1 ~ 4F
- Road Conditions: 4-lane road × 2-lane road corner (Excellent commercial accessibility)
- Completion Year: August 27, 1983
- Official Land Price (at the time): Approx. ₩12.05 million/pyeong (approx. 2.57 times lower than land price)
Value Assessment in the Context of the 2019 Market
In May 2019, this building was traded for ₩5.8 billion, forming a price of ₩30.98 million per pyeong, which falls within the mid-to-upper price range in Sinwol-dong, Yangcheon-gu. Considering its land area of 187.25 pyeong and building area of 387.20 pyeong, it could be classified as a medium-sized building. Although its location in a General Residential Zone 3 might have imposed some limitations on commercial use, its price fully reflected the transportation premium near Sinjeongnegeori Station. Notably, its corner location at the intersection of a 4-lane and a 2-lane road would have acted as a strong point for its excellent visibility and commercial accessibility.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Sinwol-dong in Yangcheon-gu has seen continuous price appreciation since 2019, driven by the revitalization of the commercial district around Sinjeongnegeori Station and major development prospects such as the large-scale Mok-dong-Sinwol District Redevelopment Promotion Project. It is estimated that the per-pyeong price of commercial real estate in Yangcheon-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 ₩30.98 million/pyeong from 2019 results in approximately ₩37.17 million/pyeong.
- Applying a 30% growth rate results in approximately ₩40.27 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩37 million and ₩40 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 Sinwol-dong building:
- Optimal Location: Its corner location at the intersection of a 4-lane and a 2-lane road near Sinjeongnegeori Station offers excellent transportation accessibility and is integrated into the central commercial district of Yangcheon-gu, ensuring consistent floating population.
- 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 1983, its excellent 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 Mok-dong-Sinwol 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:
- Development Potential: Older buildings in areas undergoing large-scale development, such as redevelopment projects, have high potential for capital gains.
- Power of Corner Location: A building at a corner of a 4-lane and a 2-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 Sinjeongnegeori Station allows for expectations of stable rental income.
However, being an older building (completed in 1983), 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: Yangcheon-gu Sinwol-dong Building, An Investment with Shining Growth Potential
The Yangcheon-gu Sinwol-dong building sale case clearly demonstrates how excellent location, regional characteristics, and future development prospects can combine to maximize real estate value. Sinwol-dong is still considered an attractive investment destination with high growth potential and unchanging prime location value.
#SinwolDongBuilding #YangcheonGuRealEstate #SmallBuildingInvestment #SinjeongnegeoriStation #RealEstateInvestment #SinwolDong #RealEstateMarketPrice #SmallBuilding #RealEstateValue #RealEstateAnalysis #YangcheonGuCommercialRealEstate #RealEstateMarketTrends #RealEstateFinancialTech #MokdongSinwolDistrict #Reconstruction #Remodeling
