"Though Over 30 Years Old"... Police Hospital Station's 4.1 Billion KRW Small Building, Bought for 'This'

“Why would someone buy an old building at a high price?” This is a common thought when seeing real estate news.

Recently, a 5-story building over 30 years old, located in the Police Hospital Station area of Songpa-gu, Seoul, was sold for 4.17 billion KRW. The real reason the new owner bet on this ‘old building’ lay in the ‘land’ and ‘future’.

'Station Area, Main Road, 100 Pyeong'…Optimal Conditions for 'New Construction'

The core of this investment is the value of the ‘land’ on which the building stands, not the building itself.

Transaction Date: April 2019
Sale Price: 4.17 billion KRW (approx. 41.52 million KRW per 3.3㎡)
Key Points:

Police Hospital Station Area: A Line 3 station area, guaranteeing a stable commercial district with consistent foot traffic.
4-Lane Main Road: Boasts excellent visibility, easily noticed by both vehicles and pedestrians.
100 Pyeong Plot: A large plot exceeding 100 pyeong is a critical factor for maximizing business potential during new construction.

The Power of 'Third General Residential Zone' Calling for 'New Construction'

The 'big picture' envisioned by the new owner is a ‘value-up’ through ‘new construction’.

"The zoning of this land is the 'Third General Residential Zone', one of the most valuable residential areas where high-rise buildings, such as apartments, can be built."

That is, the strategy is to demolish the old building built in 1988, construct a ‘new small building’ that fully utilizes the floor area ratio (용적률), thereby increasing the property's value by more than double.

Investing in the 'Future'

This 4.17 billion KRW transaction exemplifies the classic approach to real estate investment.

"Invest not in the 'old present' but in the 'future' value guaranteed by 'location' and 'zoning'."

We look forward to seeing whether this site will become a new ‘landmark’ at Police Hospital Station under the new owner's hand.

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"Though Over 30 Years Old"... Police Hospital Station's 4.1 Billion KRW Small Building, Bought for 'This'