Analysis of Yongsan-gu Itaewon-dong 74-54 Building Sale Case: 2019 Transaction at ₩2.7 Billion, What's Its Current Value?
Hello. Itaewon-dong in Yongsan-gu, where diverse cultures coexist and its exotic charm continuously draws people, holds fascinating investment value comparable to its unique commercial district. Today, we will conduct an in-depth analysis of a building sale case in Itaewon-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.
Itaewon-dong Building Overview: ₩2.7 Billion Transaction in June 2019
First, let's look at the key information for this building.
- Location: 74-54 Itaewon-dong, Yongsan-gu, Seoul, Republic of Korea
- Nearest Subway Station: Itaewon Station (Excellent accessibility)
- Transaction Date: June 2019
- Sale Price: ₩2.7 billion
- Land Price: ₩51.00 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 52.94 pyeong (approx. 175 sq. meters)
- Building Area: 69.27 pyeong (approx. 229 sq. meters)
- Zoning Classification: General Residential Zone 2
- Floors: B1 ~ 2F
- Road Conditions: Fronting a 4m road
- Completion Year: May 25, 1978
- Official Land Price (at the time): Approx. ₩31.34 million/pyeong (approx. 1.63 times lower than land price)
Past Transaction History and Sale Profit Analysis
This building experienced significant value appreciation from its sale in 2011 until 2019.
- May 2011: Sold for ₩1.267 billion (₩23.93 million per pyeong).
- June 2019: Sold for ₩2.7 billion (₩51.00 million per pyeong) after approximately 8 years of ownership.
It recorded a remarkable sale profit during the 8-year holding period:
- Generated ₩1.433 billion in sale profit over 8 years.
- This translates to approximately ₩179.12 million annually, or about ₩14.93 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 Itaewon-dong area of Yongsan-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 ₩2.7 billion, forming a price of ₩51.00 million per pyeong, which falls within the mid-to-upper price range in Itaewon-dong, Yongsan-gu. Considering its land area of 52.94 pyeong and building area of 69.27 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 premium of Itaewon Station's vibrant commercial district. However, a 4m road, while suitable for small shops or residential use, may present some limitations in terms of accessibility.
Current (2025) Market Price Estimate: How Much Has Its Value Increased?
Itaewon-dong in Yongsan-gu has seen continuous price appreciation since 2019, driven by the revitalization of the commercial district around Itaewon Station, its unique characteristic as a foreign resident hub, and major development prospects such as the creation of Yongsan Park and the Yongsan International Business District. It is estimated that the per-pyeong price of commercial real estate in Yongsan-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 in 2025:
- Applying a 20% growth rate to ₩51.00 million/pyeong from 2019 results in approximately ₩61.20 million/pyeong.
- Applying a 30% growth rate results in approximately ₩66.30 million/pyeong.
Therefore, the land price of this building could potentially be valued between ₩61 million and ₩66 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 Itaewon-dong building:
- Unique Location: Its location on a 4m road near Itaewon Station offers good commercial accessibility and the advantage of attracting diverse cultural commerce and floating populations unique to Itaewon.
- 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 1978, it has the potential to increase its value through future reconstruction or major remodeling, especially considering the premium value of the Itaewon commercial district.
- Future Development Prospects: Major development prospects across Yongsan-gu, such as the development of the Yongsan International Business District and the creation of Yongsan Park, serve as powerful prospects that will further increase the value of Itaewon-dong in the long term.
Investment Implications and Precautions
This case presents the following important implications for investors:
- Stable Value Appreciation: The high value appreciation of 114% over 8 years demonstrates the robust growth potential of real estate in the area near Itaewon Station.
- Strength of Multicultural Commercial Zone: Itaewon's unique commercial district creates diverse rental demand, allowing for expectations of stable income.
- Reconstruction/Remodeling Opportunity: The fact that it's an older building can actually be an investment opportunity for future value enhancement.
However, the 4m road frontage may limit expandability, and a meticulous review of the estimated costs and permitting process for reconstruction or remodeling of an older building (completed in 1978) is necessary.
Conclusion: Yongsan Itaewon-dong Building, An Investment with Unique Charm and Potential
The Yongsan-gu Itaewon-dong building sale case clearly demonstrates how unique regional characteristics, consistent value appreciation, and future development prospects can combine to maximize real estate value. Itaewon is still considered an attractive investment destination with high growth potential and unique charm.
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