Analysis of Yeongdeungpo-gu Sin-gil-dong 3712 Building Sale Case: 2019 Transaction at ₩1.318 Billion, What's Its Current Value?
Hello. Sin-gil-dong in Yeongdeungpo-gu, a key transportation hub in southwestern Seoul and an area with active redevelopment projects, has consistently attracted attention in the real estate market in recent years. Today, we will conduct an in-depth analysis of a building sale case in Sin-gil-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.
Sin-gil-dong Building Overview: ₩1.318 Billion Transaction in June 2019
First, let's look at the key information for this building.
- Location: 3712 Sin-gil-dong, Yeongdeungpo-gu, Seoul, Republic of Korea
- Nearest Subway Station: Sinpung Station (Excellent accessibility)
- Transaction Date: June 2019
- Sale Price: ₩1.318 billion
- Land Price: ₩39.25 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 33.58 pyeong (approx. 111 sq. meters)
- Building Area: 41.40 pyeong (approx. 137 sq. meters)
- Zoning Classification: General Residential Zone 2
- Floors: B1 ~ 2F
- Road Conditions: 6m × 4m corner (Good commercial accessibility)
- Completion Year: April 1, 1970
- Official Land Price (at the time): Approx. ₩10.90 million/pyeong (approx. 3.60 times lower than land price)
Past Transaction History and Sale Profit Analysis
This building experienced significant value appreciation from its sale in 2014 until 2019.
- March 2014: Sold for ₩763 million (₩22.72 million per pyeong).
- June 2019: Sold for ₩1.318 billion (₩39.25 million per pyeong) after approximately 6 years of ownership.
It recorded a remarkable sale profit during the 6-year holding period:
- Generated ₩555 million in sale profit over 6 years.
- This translates to approximately ₩92.5 million annually, or about ₩7.71 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 Sin-gil-dong area of Yeongdeungpo-gu and the potential of the building itself.
Value Assessment in the Context of the 2019 Market
In June 2019, this building was traded for ₩1.318 billion, forming a price of ₩39.25 million per pyeong, which falls within the mid-to-upper price range in Sin-gil-dong, Yeongdeungpo-gu. Considering its land area of 33.58 pyeong and building area of 41.40 pyeong, it could be classified as a small building. Although its location in a General Residential Zone 2 might have imposed some limitations on commercial use, its price fully reflected the transportation premium near Sinpung Station. Its 6m × 4m corner location would have made it suitable for small shops or residential use.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Sin-gil-dong in Yeongdeungpo-gu has seen continuous price appreciation since 2019, driven by the revitalization of the commercial district around Sinpung Station and major development prospects such as the Yeongdeungpo District Redevelopment Project. It is estimated that the per-pyeong price of commercial real estate in Yeongdeungpo-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 ₩39.25 million/pyeong from 2019 results in approximately ₩47.10 million/pyeong.
- Applying a 30% growth rate results in approximately ₩51.02 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩47 million and ₩51 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 Sin-gil-dong building:
- Optimal Location: Its 6m × 4m corner location near Sinpung Station offers good transportation accessibility and is suitable for small commercial facilities or residential use. This reflects the value of Yeongdeungpo-gu's central commercial district.
- Zoning Utilization: Although it is classified as a General Residential Zone 2 with some restrictions on commercial use changes, its suitability for small shops and residential use ensures consistent rental demand.
- Reconstruction/Remodeling Potential: Despite being an older building completed in 1970, its corner location, coupled with the impact of the Yeongdeungpo area's redevelopment, makes it highly likely to attract demand for value enhancement through future reconstruction or large-scale remodeling.
- Local Development Prospects: The Yeongdeungpo 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:
- Stable Value Appreciation: The high value appreciation of 73% over 6 years demonstrates that small buildings in the area near Sinpung Station can also have robust growth potential.
- Power of Corner Location: A building at a 6m × 4m corner, with excellent visibility and accessibility, offers high utility for new construction of small retail shops or multi-family housing, serving as a basis for generating stable rental income.
- Abundant Rental Demand: The residential and commercial demand around Sinpung Station allows for expectations of stable rental income.
However, being an older building (completed in 1970), 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 2.
Conclusion: Yeongdeungpo-gu Sin-gil-dong Building, An Investment with Shining Reconstruction Potential
The Yeongdeungpo-gu Sin-gil-dong building sale case clearly demonstrates how excellent location, regional characteristics, and future development prospects can combine to maximize real estate value. Sin-gil-dong is still considered an attractive investment destination with high growth potential and unchanging prime location value.
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