Haebangchon Namsan View New Building Transaction Analysis: 1.67 Billion Won, Investment Points of Scarcity and Value (ft. Sookmyung Women's Univ. Station)
Haebangchon, located in Yongsan-gu, Seoul, boasts a unique atmosphere blended with the natural scenery of Namsan, and has recently gained significant popularity among the younger generation and tourists. Along with the advantage of offering rare unobstructed views of Namsan in the city center, unique cafes, restaurants, and workshops are nestled in its alleys, creating a special commercial district. The news of a new-grade small building with a Namsan view being transacted in Haebangchon confirms the value and investment potential of the Haebangchon real estate market. Today, we will analyze a case study of a small building transaction in Haebangchon, costing around 1.67 billion Won, to examine the value of a Namsan view and a new-grade building, and the points to consider when investing in this area.
Yongsan-gu Yongsan-dong 2-ga 1-280, Transacted for 1.67 Billion Won
The building we will analyze is located at Yongsan-dong 2-ga, 1-280 in Yongsan-gu. It was transacted for 1.67 billion Won in February 2025. As a compact small building with a land area of 26.98 pyeong (approx. 89.2㎡), it is a 4-story above-ground building.
Key Features and Location Analysis of the Transacted Building:
- Stunning Namsan View: The biggest attraction of this building is the unobstructed view it offers of Namsan. Securing a permanent Namsan view in the heart of Seoul is extremely difficult, making this a factor that adds significant scarcity and value to the building. The view of Namsan from the upper floors maximizes the building's appeal, making it advantageous for attracting tenants or during future resale.
- New-Grade Building Condition: Completed in December 2022, the building is in new condition, being only about 2 years old at the time of transaction. A new building has lower initial maintenance costs compared to older buildings and features designs and facilities aligned with the latest trends, making it popular with tenants. Good building condition is an advantage that reduces the burden of additional costs after investment.
- Haebangchon Location: Situated at the foot of Namsan, Haebangchon has a unique atmosphere and sensibility that attracts a specific demographic. Recently, visits from the younger generation have increased, invigorating the commercial area, which is densely packed with unique shops.
- Near Sookmyung Women's Univ. Station: Located within walking distance of Sookmyung Women's Univ. Station on Line 4. While Sookmyung Women's Univ. Station provides public transportation access, additional verification may be needed as the actual walking time and slope may vary depending on the specific location of the building within Haebangchon.
- First Class General Residential Zone: This building is located in a 'First Class General Residential Zone'. This is an area primarily for low- and mid-rise residential buildings aimed at creating a pleasant residential environment, with low building coverage and floor area ratios, making it difficult to build tall structures. Building regulations are stricter than in commercial areas, potentially limiting the height or size of the building.
- Value of 61.89 Million Won Per Pyeong: The price of just over 60 million Won per pyeong for a plot of about 27 pyeong can be seen as a result of the Namsan view and the advantage of being a new-grade building within Haebangchon. The fact that this price was formed despite the limitations of being a First Class General Residential Zone indicates that location and building condition are crucial value factors.
- Building Status: Constructed up to 4 stories above ground, efficiently utilizing the space relative to the land area. The total floor area is 38.96 pyeong (approx. 128.78㎡).
- Road Condition: Fronts a 4m road. Due to the geographical characteristics of Haebangchon, there are many narrow roads, and a 4m road may impose some limitations on vehicle access and parking.
Haebangchon, Harmony of Namsan View and Unique Atmosphere Creates Appeal
Haebangchon attracts many people with its unique charm, going beyond being just a residential area.
- Namsan View: Being able to view Namsan, a symbol of downtown Seoul, up close is a strong differentiating point for Haebangchon. Locations that secure a Namsan view without being obstructed by tall buildings are highly scarce.
- Unique Commercial Area: Older houses and commercial buildings have been remodeled, giving rise to stylish cafes, restaurants, independent bookstores, and workshops, forming a distinct commercial district. It is primarily composed of small, independent shops rather than large commercial facilities, creating a cozy and trendy atmosphere.
- Increase in Young Visitors: The unique atmosphere and diverse attractions have led to a steady increase in visits from the younger generation, positively impacting commercial activity and real estate value appreciation. [[1]](https://world.seoul.go.kr/haebangchon-shinheung-market-reborn-art-market/)
Small Building Investment, The Value of a New-Grade Building and Namsan View
As seen in this transaction case, a new-grade building and a Namsan view are important value factors in small building investment.
- Advantages of a New-Grade Building: A building completed recently is less likely to incur major repair or replacement costs for some time, allowing for stable operation after investment. Tenants also tend to prefer new buildings, making rental management easier.
- Namsan View Premium: The scarce Namsan view acts as a premium factor that increases the building's value. Especially when used for commercial purposes, spaces with good views can be advantageous for setting higher rents or reducing vacancy rates.
- Utilization Options: As a new-grade building, the buyer can use it directly as a company headquarters or residence, or rent out each floor to generate income, offering various utilization possibilities.
Considerations When Investing in Haebangchon Small Buildings
While investing in Haebangchon small buildings has attractive potential, a cautious approach is needed due to the area's characteristics.
- Geographical Characteristics and Accessibility: Haebangchon is located on a hilly terrain with many steep slopes. This can reduce pedestrian convenience, and public transportation access also needs to be considered comprehensively, including the distance to Sookmyung Women's Univ. Station and bus routes. Mobility can be particularly inconvenient in adverse weather conditions like snow or rain.
- Difficulty in Securing Parking Space: Due to the nature of an older urban area, parking space is often very limited. It is essential to confirm whether the building itself has sufficient parking or if nearby public parking is convenient.
- Commercial Area and Rental Demand Analysis: The Haebangchon commercial area is rapidly changing, and foot traffic and preference can vary depending on specific alleys or locations. Analyze the specific characteristics of the commercial area where the investment property is located and accurately assess which types of rental demand (commercial, residential, etc.) are consistent.
- Building Regulation Check: In addition to the building regulations of the First Class General Residential Zone, it is essential to confirm if there are any additional scenic regulations or height restrictions due to being near Namsan. A legal review is crucial if there are plans for future expansion or remodeling.
For Haebangchon Small Building Investment, Expert Assistance is Important
Investing in Haebangchon small buildings is a complex investment that requires comprehensive analysis of various factors such as regional characteristics, building condition, and regulations. It is important to seek assistance from a reliable real estate expert to conduct market analysis, building valuation, and identification of potential risks. With expert advice, you can minimize investment risks and establish a successful investment plan.
Detailed Transaction Analysis
Let's examine the specific transaction details of the building at Yongsan-dong 2-ga 1-280.
※ Transaction Details
- Location: Yongsan-gu Yongsan-dong 2-ga 1-280
- Subway Station: Sookmyung Women's Univ. Station
- Transaction Date: February 2025
- Sale Price: 1.67 billion Won
- Land Price (Per Pyeong): 61.89 million Won
- Land Area: 26.98 pyeong (89.2㎡)
- Building Area (Total Floor Area): 38.96 pyeong (128.78㎡)
- Zoning District: First Class General Residential Zone
- Floors: 4 stories above ground
- Road Condition: 4m
- Year of Completion: December 21, 2022
- Official Standard Land Price (공시지가): Approx. 19.35 million Won (Per Pyeong)
- Land Price Relative to Official Standard Price: Approx. 3.20 times (Shows that the actual transaction price was higher than the official standard price.)
This transaction is a case where a new-grade small building with a land area of approximately 27 pyeong and a total floor area of about 39 pyeong (4 stories above ground) was transacted for 1.67 billion Won, at approximately 61.89 million Won per pyeong. The price exceeding 60 million Won per pyeong, despite being in a First Class General Residential Zone, is interpreted as a result of the scarcity of the Haebangchon location, the Namsan view premium, and the advantage of being a new-grade building. Although the building area is small relative to the land area, suggesting that the floor area ratio may not have been maximized (needs confirmation of the maximum floor area ratio in the First Class General Residential Zone), it is also possible that the design prioritized securing the Namsan view.
Conclusion: Haebangchon Small Building, The Value of Namsan View and Scarcity
The case study of the 1.67 billion Won small building in Haebangchon, Yongsan-gu, demonstrates how highly real estate in the Haebangchon area is valued when combined with a Namsan view and a new-grade building. Despite some drawbacks such as accessibility to Sookmyung Women's Univ. Station and steep terrain, the scarce Namsan view and the advantage of being a new-grade building with low maintenance burden were key factors increasing the investment value.
Investing in Haebangchon small buildings involves attractive elements like a unique commercial district atmosphere and Namsan view, but requires thorough analysis of geographical characteristics, public transport and parking convenience, and local commercial area and building regulations. We hope you can seize successful Haebangchon small building investment opportunities through careful analysis and expert advice.