Dongnimmun Station 700 Million Won Small Building, 260 Million Won Loss in 1 Year! The Trap of 'Small Investment' Next to Inwangsan I-Park? (ft. New Construction, Tenants, Seoul Small Building)
A small building located in Muak-dong, Jongno-gu, Seoul, in the Dongnimmun Station area, was sold for 680 million Won, shocking investors. This building, which was transacted for 945 million Won just one year ago, recorded a sales loss of 265 million Won in just one year. Although it has high scarcity value as you can purchase both land and building at the price of an apartment, can this small building truly be a success story of 'small investment'? From now on, we will delve into the hidden story of the Dongnimmun Station small building transaction.
Dongnimmun Station 700 Million Won Small Building, 260 Million Won Loss in 1 Year... What is the Reason for Investment Failure?
In March 2025, the building at Muak-dong 46-938, Jongno-gu, was sold for 680 million Won. This building, located a short distance from Dongnimmun Station, is a 1-story building with a land area of 35 pyeong and a building area of 10.01 pyeong. It is located in a Second Class General Residential Zone and fronts an 8m road.
What is astonishing is that this building was transacted for 945 million Won just one year ago, in June 2024. It recorded a sales loss of 265 million Won in just one year, amounting to a loss of over 22 million Won per month. The large loss incurred in a short period came as a big shock to investors.
Key Features and Location Analysis:
- 700 Million Won Small Building Transaction: 260 million Won loss in 1 year
- Investment Failure: Over 22 million Won loss per month
- Small Investment Trap: Careful investment required
Hilly Terrain & Low Accessibility, Value Increase Through New Construction is Essential
Despite the locational condition of being in the Dongnimmun Station area, the reason for the decrease in the value of this building is analyzed to be multi-faceted. Firstly, the disadvantage of being located on hilly terrain reduces accessibility, and this is highly likely to have led to a decrease in building value. Furthermore, not being on a main traffic route means that attracting tenants may be difficult.
Therefore, improvement through new construction is essential to increase the value of this building. However, even after new construction, careful selection of tenant types is necessary, and it may be more suitable for personal use.
- Hilly Terrain: Low accessibility
- Not on Main Traffic Route: Difficulty attracting tenants
- New Construction Essential: Building value increase needed
Purchasing Land + Building at Apartment Price, High Scarcity, But...
The fact that you can purchase both land and building at the price of an apartment increases the scarcity value of this building. However, low accessibility and limited usability can act as factors that lower the investment yield. Particularly, the large loss incurred in one year is an example showing the risk of small small building investment.
Therefore, if you are considering investing in small small buildings, it is dangerous to invest simply based on price. You must carefully make investment decisions after comprehensively considering various factors such as locational conditions, building condition, and surrounding environment.
- Purchasing Land + Building at Apartment Price: High scarcity
- Low Accessibility & Limited Usability: Low investment yield
- Risk of Small Small Building Investment: Careful investment required
Conclusion
The Dongnimmun Station small building transaction is an example showing the duality of small small building investment. Despite the advantage of being able to purchase land and building at the price of an apartment, low accessibility and limited usability can lead to a large loss. Therefore, if you are considering investing in small buildings, careful analysis and judgment are necessary.
The building at Muak-dong 46-938, Jongno-gu, was sold in March 2025.
※ Transaction Details
- Location: Jongno-gu Muak-dong 46-938
- Subway Station: Dongnimmun Station
- Transaction Date: March 2025
- Sale Price: 680 million Won
- Land Price (Per Pyeong): 19.43 million Won
- Land Area: 35.00 pyeong (115.7㎡)
- Building Area (Total Floor Area): 10.01 pyeong (33.10㎡)
- Zoning District: Second Class General Residential Zone
- Floors: 1 story above ground
- Road Condition: 8m
- Year of Completion: (Information not available)
- Official Standard Land Price (공시지가): Approx. 16.26 million Won (Per Pyeong)
- Land Price Relative to Official Standard Price: Approx. 1.19 times
※ Past Transaction History
- June 2024: 945 million Won sale (27.00 million Won per pyeong)
- March 2025: 680 million Won sale (19.43 million Won per pyeong) (Held for approx. 1 year)
- 1 year: 265 million Won sales loss
- Monthly: 22.08 million Won loss (Simple sales loss analysis only)