Jung-gu Ssangnim-dong 25-15 Small Building Investment Case Analysis: 2020 Transaction at ₩3.6 Billion, What's Its Current Value?

Hello. Ssangnim-dong in Jung-gu, the heart of Seoul, is an attractive area where the vibrant energy of Dongdaemun Design Plaza (DDP) coexists with a long-standing commercial district. Today, we will analyze the 2020 sale case of a small building located here in Ssangnim-dong, exploring its hidden investment value and changes in its current value.

Ssangnim-dong Small Building Overview: ₩3.6 Billion Transaction in August 2020

First, let's look at the key information for this building.

Location: 25-15 Ssangnim-dong, Jung-gu, Seoul, Republic of Korea
Nearest Subway Station: Dongdaemun History & Culture Park Station (Triple Transfer Station for Lines 2, 4, 5), Euljiro 4-ga Station (Double Transfer Station for Lines 2, 5) within walking distance
Transaction Date: August 2020
Sale Price: ₩3.6 billion
Land Price: ₩81.09 million per pyeong (approx. 3.3 sq. meters)
- Land Area: 44.39 pyeong (approx. 146.7 sq. meters)
Building Area: 114.27 pyeong (approx. 377.6 sq. meters)
Zoning Classification: General Commercial Zone (Building Coverage Ratio 60%, Floor Area Ratio 800% / 600% within the Four Gates area)
Floors: B1 ~ 4F
Road Conditions: Main road, Super-prime station area (30m walk from Dongdaemun History & Culture Park Station Exit 6)
Completion Year: 1986 (Remodeled in 2014)
Occupancy Status: No vacancies (fully occupied), Rental yield approx. 3%
Key Features: Entirely commercial-use building, near CJ CheilJedang Headquarters, rented for offices and retail

Value Assessment in the Context of the 2020 Market

In August 2020, this building was sold for ₩3.6 billion, fetching a price of ₩81.09 million per pyeong. Considering it's a small commercial building in a general commercial zone within the super-prime area of Dongdaemun History & Culture Park Station, it was already considered highly priced at that time.

Despite being a small commercial facility with a land area of 44.39 pyeong and a building area of 114.27 pyeong, it was an attractive investment, providing stable cash flow with a rental yield of approximately 3% at full occupancy. Notably, the fact that the sale price of ₩3.6 billion matches the land price of ₩3.6 billion indicates that the building's value was largely based on the land value.

Current (2025) Market Price Estimate: How Much Has Its Value Increased?

Since 2020, the Dongdaemun and Jung-gu areas have seen a continuous increase in real estate prices due to the revitalization of DDP, redevelopment around Cheonggyecheon Stream, and the overwhelming benefit of being a triple-transfer subway station. It is estimated that the per-pyeong price of commercial real estate in central Seoul has increased by approximately 25% to 35% during this period.

By applying this growth rate to the 2020 land price, we can estimate its current market value in 2025:

Applying a 25% growth rate to ₩81.09 million/pyeong from 2020 results in approximately ₩101.36 million/pyeong.
Applying a 35% growth rate results in approximately ₩109.47 million/pyeong.

Therefore, the land price of this building could potentially be valued between ₩100 million and ₩110 million per pyeong in 2025, which would have led to a very significant increase in its overall sale price.

Key Factors Driving Real Estate Value Appreciation

Behind this value appreciation are several positive factors inherent to the Ssangnim-dong building:

Overwhelming Location: Being a mere 30m walk from Dongdaemun History & Culture Park Station, a triple-transfer station for Lines 2, 4, and 5, maximizes transportation and commercial accessibility. Proximity to Euljiro 4-ga Station (double-transfer) further enhances its prime location.
General Commercial Zone Potential: Its zoning as a General Commercial Zone (Building Coverage Ratio 60%, Floor Area Ratio 800% / 600% within the Four Gates area) allows for easy new construction and expansion in the future, increasing its development value.
Stable Rental Demand: The abundant resident population near CJ CheilJedang Headquarters and the commercial district along the main road ensure stable rental demand. The current full occupancy status is a testament to this.
Successful Remodeling: The disadvantage of being an older building completed in 1986 has been offset by a successful remodeling in 2014. Its neat exterior and interior have reduced vacancy risk and increased its appeal to tenants.
Future Development Prospects: The redevelopment of surrounding aging buildings and development pressure in the central Seoul station areas further enhance the long-term value appreciation of this building.

Investment Implications

This case presents the following important investment implications:

Scarcity: A building entirely designated for commercial use (올근생) in a general commercial zone within a super-prime station area, acquired at a ₩3.6 billion price point (now significantly higher), was a rare opportunity, making it highly attractive to investors.
Stable Rental Income: A 3% rental yield at full occupancy provides a steady cash flow, forming a basis for increasing investment efficiency through bank loans.
Development Potential: A high Floor Area Ratio signifies the potential to maximize building value through future new construction, promising capital gains beyond mere rental income.
Risk Management: The lack of an elevator and its older completion year (1986) could have been drawbacks. However, the overwhelming super-prime location and the successful 2014 remodeling have offset these disadvantages, contributing to maintaining the building's appeal.

Conclusion: Jung-gu Ssangnim-dong Small Building, An Excellent Investment Choice

The Ssangnim-dong building sale case in Jung-gu is an exemplary model of how small building investments, harmonizing location, development potential, and stable rental income, can lead to successful outcomes. We hope you gain insights into real estate investment through this analysis.

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Jung-gu Ssangnim-dong 25-15 Small Building Investment Case Analysis: 2020 Transaction at ₩3.6 Billion, What's Its Current Value?