Analysis of Gangnam Cheongdam-dong 15.2 Billion Won Plot: 'Eterno Apgujeong' New Construction Plot Analysis in Apgujeong Luxury Street Investment Success Story (ft. Apgujeong Rodeo Station, 10.7 Billion Won Capital Gain)
In Cheongdam-dong, the heart of Gangnam and the best luxury street in Korea, a real estate transaction worth billions of Won has been completed. This is the plot at Cheongdam-dong 90-4, adjacent to Apgujeong Rodeo Station, which is planned to be transformed into a new construction plot for a high-end residential building called 'Eterno Apgujeong'. This plot recorded a historical capital gain of 10.7 billion Won in just 12 years, bringing enormous profits to investors. What is the investment value of this Cheongdam-dong plot, and how was such astonishing profit possible? Today, we will delve into this transaction case to conduct an in-depth analysis of the new construction plot investment strategy in Gangnam Cheongdam-dong luxury street and the potential for future value appreciation.
Gangnam-gu Cheongdam-dong 90-4 Plot, Transacted for 15.2 Billion Won
The real estate we will examine is the plot at Cheongdam-dong, 90-4 in Gangnam-gu, whose sale was completed for 15.2 billion Won in February 2025. This plot was previously transacted for 4.5 billion Won in August 2013, exactly 12 years prior.
Key Features and Location Analysis of the Transacted Plot:
- Core Location in Apgujeong Luxury Street: This plot is located in the heart of Apgujeong Luxury Street, one of the most symbolic spaces in Gangnam, Seoul. It is an area concentrated with high-end brand stores, galleries, and upscale restaurants, making it a location with very high scarcity and symbolic value.
- Adjacent to Apgujeong Rodeo Station: Located within walking distance of Apgujeong Rodeo Station on the Suin-Bundang Line. The convenient transportation environment of the station area enhances accessibility for visitors and residents, adding to the value of the plot.
- 91.75 Pyeong Land Area: The land area is 91.75 pyeong (approx. 303.3㎡), a sufficient size for constructing a high-end residential building. Particularly, land close to 100 pyeong in a core area of Gangnam has high scarcity value.
- Second Class General Residential Zone: This plot is located in a 'Second Class General Residential Zone'. This is an area primarily for low- and mid-rise residential buildings aimed at creating a pleasant environment. However, in commercially active and high-end residential areas like Cheongdam-dong Luxury Street, it has high value through zoning changes or efficient architectural design.
- 6m x 4m Corner Road Condition: It is a corner plot fronting 6m and 4m roads, with good visibility. While not a main road, it is located on a back street of the luxury street, offering the advantage of being quiet yet having secured accessibility.
- Existing Building and New Construction Plan: Previously, there was a building of B1F to 2F scale completed in 1989. Through this sale, the existing building will be demolished, and a high-end residential building named 'Eterno Apgujeong' is planned to be newly constructed. Like a 'blank canvas', this plot has the potential to become a new landmark on Apgujeong Luxury Street through new construction.
10.7 Billion Won Capital Gain in 12 Years! Proving to be a 'Golden Goose'
The fact that this plot recorded an astonishing capital gain of 10.7 billion Won over a period of 12 years is a result of the combined effect of the unique power of the Apgujeong Cheongdam-dong luxury street location and the rapid appreciation of the Gangnam real estate market.
Investment Profit Analysis:
- August 2013 Transaction Price: 4.5 billion Won (approx. 48.91 million Won per pyeong)
- February 2025 Transaction Price: 15.2 billion Won (approx. 165.67 million Won per pyeong)
- Holding Period: Approx. 11 years and 6 months (Approx. 11.5 years)
- Total Capital Gain: Approx. 10.7 billion Won (Simple capital gain analysis)
- Annual Average Capital Gain: Approx. 930.43 million Won (Simple capital gain analysis)
- Monthly Average Profit: Approx. 77.53 million Won (Simple capital gain analysis)
In just 12 years, the plot price increased by 10.7 billion Won, or over 237%. The price per pyeong also jumped more than 3 times in 12 years, from the high 40 million Won range to the mid-160 million Won range. This calculation is based solely on simple capital gain and does not include rental income generated during the holding period, building maintenance costs, taxes, etc. Including rental income would result in a much higher actual investment yield. Like a 'time capsule', this plot demonstrates that asset value has exploded over a period of 12 years.
Key Secrets to Investment Success:
- Securing a Core Location in Apgujeong Luxury Street: Acquiring a core location in Cheongdam-dong Luxury Street, the best luxury street and high-end residential area in Korea, was the most fundamental prerequisite for successful investment. The overwhelming scarcity and symbolic value of the location are powerful drivers of asset value appreciation.
- Leveraging the Long-Term Appreciation Trend of the Gangnam Real Estate Market: The investor effectively leveraged the market conditions where land values in core areas like Cheongdam-dong in the Gangnam real estate market sharply increased during the period from 2013 to 2025, realizing high capital gains.
- Selecting a Plot with Potential: Regardless of the age of the existing building, the foresight to invest based on its potential as a 'new construction plot' where new buildings, such as high-end residential buildings, could be constructed, given the location on Apgujeong Luxury Street and its designation as a Second Class General Residential Zone, was crucial.
- 'Eterno Apgujeong' New Construction Plan: Expectations for the plot's future value were further heightened with the confirmed plan to construct 'Eterno Apgujeong', a high-end residential brand. The fact that a high-end building is planned to be built further enhances the value of the plot itself.
Apgujeong Luxury Street, High-End Residential New Construction Boom and Investment Value
Cheongdam-dong Luxury Street is an area where new construction of high-end residential buildings has been active recently.
- Demand for High-End Residential Buildings: There is steady demand from high-net-worth individuals for high-end residential buildings on scarce land in core areas of Gangnam.
- Maximizing Development Value: Demolishing existing aging buildings and constructing high-end residential buildings by utilizing the floor area ratio, etc., is being used as a method to maximize the value of the land.
- Future Landmark: High-end buildings like 'Eterno Apgujeong' go beyond simple residences, becoming new landmarks in the area and adding symbolic value and worth.
- High Construction Costs: However, constructing high-end residential buildings requires enormous construction costs. An investment plan that considers construction costs in addition to land purchase costs is necessary.
Future Investment Outlook and Precautions
Investing in plots on Gangnam-gu Cheongdam-dong Luxury Street is an attractive investment property expected to see long-term asset value appreciation based on the unique location of Apgujeong Luxury Street and strong future development boosts such as the confirmed new construction of 'Eterno Apgujeong'. The past case of recording an astonishing capital gain of 10.7 billion Won in 12 years clearly demonstrates this potential.
However, the following points should be carefully considered during investment:
- High Initial Investment Cost: Purchasing plots in core areas of Gangnam requires enormous initial investment costs. A thorough funding plan must be established.
- Construction Costs and Time: Enormous construction costs and the possibility of unexpected increases, as well as the construction period, must be fully considered.
- Market Volatility: The Gangnam real estate market can be volatile. Careful judgment regarding market conditions due to external factors such as interest rate fluctuations, economic conditions, and government policies is necessary.
- Building Regulations and Laws: Even in a Second Class General Residential Zone, specific building regulations and use limitations applicable to the special area of Cheongdam-dong Luxury Street must be carefully checked, and expert advice should be sought.
- Expert Advice: Investing in high-value plots exceeding 10 billion Won can be very complex and involve risks. It is important to seek assistance from a reliable real estate expert for thorough analysis and prudent investment decisions.
Detailed Transaction Analysis
Let's examine the specific transaction details of the plot at Cheongdam-dong 90-4, Gangnam-gu.
※ Transaction Details
- Location: Gangnam-gu Cheongdam-dong 90-4
- Subway Station: Apgujeong Rodeo Station (Adjacent to Suin-Bundang Line)
- Transaction Date: February 2025
- Sale Price: 15.2 billion Won
- Land Price (Per Pyeong): 165.67 million Won
- Land Area: 91.75 pyeong (303.3㎡)
- Building Area (Total Floor Area): 95.86 pyeong (316.90㎡) (Existing building size)
- Zoning District: Second Class General Residential Zone
- Floors: B1F ~ 2F (Existing building floor count)
- Road Condition: 6m*4m Corner
- Year of Completion: 1989.07.11 (Existing building completion year)
- Official Standard Land Price (공시지가): Approx. 69.09 million Won (Per Pyeong)
- Land Price Relative to Official Standard Price: Approx. 2.40 times
Past Transaction History (August 2013):
- Transaction Price: 4.5 billion Won (48.91 million Won per pyeong)
Change Compared to Past Transaction (Held for approx. 11.5 years):
- Total Capital Gain: 10.7 billion Won
- Annual Capital Gain: 930.43 million Won
- Monthly Profit: 77.53 million Won (Simple capital gain analysis)
Key Features:
- Core location in Apgujeong Luxury Street
- Adjacent to Apgujeong Rodeo Station
- 15.2 billion Won transaction (10.7 billion Won capital gain in 12 years)
- Land area 91.75 pyeong (New construction plot)
- Second Class General Residential Zone
- 6m*4m Corner
- 'Eterno Apgujeong' planned for new construction after demolition of existing building
This transaction is a case where a plot with an existing building of B1F to 2F scale and a total floor area of 95.86 pyeong on a land area of approximately 91.75 pyeong was transacted for 15.2 billion Won, at approximately 165.67 million Won per pyeong. It boasts the best locational conditions as a core location in Apgujeong Luxury Street, adjacent to Apgujeong Rodeo Station, and is a 91.75-pyeong plot located in a Second Class General Residential Zone. Compared to the purchase price in 2013 (4.5 billion Won), it recorded a massive capital gain of 10.7 billion Won in just 12 years, clearly demonstrating the astonishing profitability of land investment in core areas of Gangnam. Despite being in a Second Class General Residential Zone, its high value was recognized based on the unique locational value of Apgujeong Luxury Street and the potential for future development boosts such as the new construction of 'Eterno Apgujeong', which was reflected in the high ratio of land price relative to the official standard price.
Conclusion: Gangnam Cheongdam-dong Luxury Street, A Golden Opportunity for High-End Residential New Construction Plot Investment
The case study of the 15.2 billion Won plot transaction on Gangnam-gu Cheongdam-dong Luxury Street clearly demonstrates the overwhelming investment value of the unique Apgujeong Luxury Street location and its potential as a new construction plot for high-end residential buildings. The combination of its location adjacent to Apgujeong Rodeo Station, the symbolic value of the luxury street, and the powerful development boost of the confirmed new construction of 'Eterno Apgujeong' resulted in an enormous capital gain of 10.7 billion Won in just 12 years. Demolishing the existing aging building and constructing a high-end residential building suited to the regional characteristics was the core strategy for maximizing the land value.
Investing in plots on Gangnam Cheongdam-dong Luxury Street requires enormous initial investment costs. However, it is an attractive option expected to see long-term asset value appreciation based on its unique location, demand for high-end residential buildings, and powerful future development boosts. The fact that a high-end building like 'Eterno Apgujeong' is planned to be built further enhances the value of the plot itself. However, it is important to carefully analyze risk factors such as high initial investment costs, construction costs and time, and market volatility, and make wise investment decisions with expert advice. Investing in new construction plots in core areas of Gangnam can be a golden opportunity when combined with thorough planning and execution.