Chungmuro 'Printing Alley' 1.83 Billion Won Small Building Transaction, Dongguk University Commercial Area + New Construction Issue?
The Chungmuro area in Jung-gu, Seoul, is a region that creates a unique atmosphere with its historical printing alley, representing Korea's printing industry, the young commercial area of Dongguk University, and its status as a mecca for the film industry. News of a small building located in this Chungmuro Station and Dongguk University vicinity, in the printing alley, being transacted for the late 1 billion Won range is clearly showing the potential of investing in specialized commercial areas in that region to many real estate investors. This building possesses the potential of both a university commercial area and a specialized commercial area, but it also faces the challenge of a new construction issue. We will conduct an in-depth analysis of the investment value of this building.
Jung-gu Mukjeong-dong 27-4, Transacted for 1.83 Billion Won
The building we will examine is located at Mukjeong-dong 27-4, Jung-gu, and it is a small building whose sale was completed for 1.83 billion Won in March 2025. It is located on the backstreet of Toegye-ro near Chungmuro Station and Dongguk University.
Key Features and Location Analysis of the Transacted Building:
- Adjacent to Chungmuro Station and Dongguk University Commercial Area: Located within walking distance of Chungmuro Station on Subway Lines 3 and 4, and close to Dongguk University, making it a location that can be influenced by the university commercial area. Chungmuro Station provides excellent accessibility to major downtown areas of Seoul, and Dongguk University plays an important role in revitalizing the surrounding commercial area by securing abundant foot traffic from students and faculty.
- Printing Alley Specialized Commercial Area: It is located in the Chungmuro printing alley, a specialized commercial area where printing shops are concentrated. This is advantageous for securing demand for specific business types, and it also has the potential to transform into a new type of commercial space based on its unique atmosphere.
- Investment in the 1 Billion Won Range: The sale price of 1.83 billion Won can be assessed as a reasonable level considering its locational value near the Chungmuro Station and Dongguk University commercial area, its location in the printing alley specialized commercial area, its land area of 28.19 pyeong, and its building scale (2 stories above ground, total floor area 44.76 pyeong). It was an attractive investment opportunity for investors to secure a building in a specialized commercial area near a core downtown commercial area of Seoul for a relatively manageable amount in the late 1 billion Won range.
- Third Class General Residential Zone: This building is located in a 'Third Class General Residential Zone'. This is an area aimed at creating a pleasant residential environment primarily with mid- to high-rise residential buildings. However, based on its locational characteristics near the Chungmuro Station and Dongguk University commercial area, it has the potential for diverse uses such as commercial spaces, offices, and residential. Development through new construction or remodeling utilizing a high floor area ratio (maximum 250%) is possible.
- Land Area and Total Floor Area: The land area is 28.19 pyeong (approx. 93.2㎡), and the total floor area is 44.76 pyeong (approx. 147.98㎡). The total floor area is high relative to the land area, indicating efficient utilization of the floor area ratio during construction, which is a factor that favors securing rental space and increasing yield.
- Fronting a 2-Lane Road: It fronts a 2-lane road, providing good vehicle and pedestrian access. While not a main road, it is located within a specialized street like the printing alley, ensuring a certain level of exposure to foot traffic.
- Building Status: It is a 2-story building completed on September 16, 1996. It is an aging building over 20 years old. This is an investment case focused on future value appreciation potential through new construction or remodeling, utilizing its location near the Chungmuro Station and Dongguk University commercial area, and the printing alley specialized commercial area, rather than the building's current condition.
Potential of University Commercial Area + Specialized Commercial Area, Expected Rental Income
The Chungmuro printing alley small building can expect stable rental income by simultaneously utilizing the potential of the university commercial area and the specialized commercial area.
- Influence of Dongguk University Commercial Area: Abundant foot traffic from Dongguk University students, faculty, and visitors increases the rental demand for surrounding commercial facilities. Renting out to businesses targeting students, such as cafes, restaurants, and stationery stores, may be easy.
- Specialized Demand in Printing Alley: There is steady specialized demand from printing-related businesses. By leveraging the unique atmosphere of the printing alley, tenants in related fields such as design studios and publishing-related offices can be attracted.
- Transformation into a New Commercial Space: By combining the historical background of the printing alley with the recent trend of young people preferring retro aesthetics and remodeling it into a commercial space with a unique concept, demand for a new type of commercial space can be created.
New Construction Issue, Detailed Analysis and Cost Review Necessary
The Chungmuro small building is an old building, requiring new construction. However, with the recent significant increase in new construction costs, the profitability of a new construction project must be carefully analyzed.
- Increase in New Construction Costs: Due to recent increases in construction material prices, the profitability of a new construction project may be lower than expected. Accurate estimation of expected new construction costs and a thorough funding plan are necessary.
- Building Regulations and Laws: Specific building regulations, floor area ratio, height restrictions, etc., applicable to the Third Class General Residential Zone and the specialized printing alley area must be carefully reviewed, and expert advice should be sought. Additional regulations specific to the printing alley as a specialized area may exist.
- Profitability Analysis: The expected rental income after new construction or remodeling must be compared with investment costs, and profitability should be analyzed in detail. Current rental status, expected rental rates, and potential vacancy risks must be comprehensively considered.
Land Price Relative to Official Standard Price, Relatively Reasonable Investment Judgment
The land price of this building, transacted at approximately 64.91 million Won per pyeong, is about 2.19 times the official standard land price (공시지가) of approximately 29.62 million Won per pyeong.
- Difference between Market Price and Official Standard Price: It is common for actual transaction prices to be higher than the official standard price. However, a ratio of 2.19 suggests that it reflects the locational strengths of being near Chungmuro Station and Dongguk University commercial area, the printing alley specialized commercial area, the 28.19 pyeong land area, and the Third Class General Residential Zone zoning, indicating it was purchased at a reasonable price.
- Reasonable Investment Judgment: A relatively low ratio relative to the official standard price suggests it was an attractive investment opportunity for investors to secure a building on a specialized street near a core downtown commercial area of Seoul at a low purchase price and to expect value appreciation and rental income through remodeling or new construction.
Future Investment Outlook and Precautions
Investing in the Chungmuro printing alley small building is an attractive investment property that can expect future value appreciation based on its location near Chungmuro Station and Dongguk University commercial area, the potential of the printing alley specialized commercial area, and the potential for utilization in a Third Class General Residential Zone. The advantage is securing a building near a core downtown commercial area of Seoul for a reasonable investment amount in the late 1 billion Won range.
However, the following points should be carefully considered during investment:
- New Construction Costs and Period: Due to the age of the building, new construction or extensive remodeling is likely necessary. Expected new construction/remodeling costs, construction period, and vacancy risks during construction must be carefully assessed, and a thorough funding plan must be established.
- Building Regulations and Laws: Specific building regulations, floor area ratio, height restrictions, etc., applicable to the Third Class General Residential Zone and the specialized printing alley area must be carefully reviewed, and expert advice should be sought.
- Rental Status and Vacancy Risk: Current rental status, expected rental rates, and potential vacancy risks must be analyzed in detail. Strategies to predict and respond to changes in demand in the university commercial area and specialized commercial area are necessary.
- Changes in Surrounding Commercial Area: Changes in the surrounding environment in the Chungmuro area or potential changes in the competitive environment due to the entry of new commercial facilities may occur. Strategies to predict and respond flexibly to changes in commercial area trends are needed.
- Market Volatility: The real estate market can be affected by external factors such as interest rate fluctuations and economic conditions. Careful judgment regarding market conditions is necessary during investment.
- Expert Advice: Investing in buildings on specialized streets near core downtown commercial areas of Seoul, especially when considering new construction or remodeling, is complex and requires specialized analysis. 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 building at Mukjeong-dong 27-4, Jung-gu.
※ Transaction Details
- Location: Jung-gu Mukjeong-dong 27-4
- Subway Station: Chungmuro Station (Near Lines 3 and 4)
- Transaction Date: March 2025
- Sale Price: 1.83 billion Won
- Land Price (Per Pyeong): 64.91 million Won
- Land Area: 28.19 pyeong (93.2㎡)
- Building Area (Total Floor Area): 44.76 pyeong (147.98㎡)
- Zoning District: Third Class General Residential Zone
- Floors: 2 stories above ground
- Road Condition: 2-lane road (Printing alley)
- Year of Completion: 1996.09.16
- Official Standard Land Price (공시지가): Approx. 29.62 million Won (Per Pyeong)
- Land Price Relative to Official Standard Price: Approx. 2.19 times
Key Features:
- Adjacent to Chungmuro Station and Dongguk University Commercial Area
- Printing Alley Specialized Commercial Area
- 1.83 Billion Won Transaction (Late 1 Billion Won Range)
- Land Area 28.19 pyeong, Total Floor Area 44.76 pyeong
- Third Class General Residential Zone
- 2-story building (Completed in 1996, aging)
- Fronting a 2-lane road
- New construction or remodeling needed
This transaction is a case where an aging building with a total floor area of 44.76 pyeong (2 stories above ground) on a land area of approximately 28.19 pyeong was transacted for 1.83 billion Won, at approximately 64.91 million Won per pyeong. It has the locational conditions of being near Chungmuro Station and Dongguk University commercial area, and in the printing alley specialized commercial area, and belongs to a Third Class General Residential Zone. In March 2025, it was an attractive investment opportunity to secure a building on a specialized street near a core downtown commercial area of Seoul for a relatively manageable amount in the late 1 billion Won range. Although the building was aging, completed in 1996, its potential for value increase and rental income through new construction or remodeling was highly evaluated based on its location near Chungmuro Station and Dongguk University commercial area, the potential of the printing alley specialized commercial area, and the Third Class General Residential Zone zoning. The ratio of land price relative to the official standard price (2.19 times) suggests a relatively reasonable purchase price.
Conclusion: Chungmuro Small Building, Harmony of University Commercial Area, Specialized Commercial Area, and New Construction/Remodeling Potential
The case study of the 1.83 billion Won small building in the Chungmuro printing alley, Mukjeong-dong, Jung-gu, Seoul, clearly demonstrates how attractive an investment opportunity in a core downtown commercial area of Seoul can be with a small investment in the late 1 billion Won range, when combining its locational strengths near Chungmuro Station and Dongguk University commercial area, the uniqueness of the printing alley as a specialized commercial area, and the potential for utilization in a Third Class General Residential Zone. Although the building is aging, the potential to significantly increase its value and rental income through new construction or remodeling is key. Remodeling and rental strategies that leverage the characteristics of both the university commercial area and the printing alley are important.
Investing in a Chungmuro small building is an attractive option that offers the potential for stable rental income along with long-term asset value appreciation, based on excellent transportation accessibility, abundant foot traffic (university commercial area), the potential of the specialized commercial area, and the development potential through new construction/remodeling. However, it is important to carefully analyze risk factors such as building age and new construction/remodeling costs, building regulations, rental status and vacancy risk, changes in the surrounding commercial area, and market volatility, and make wise investment decisions with expert advice. Investing in a specialized commercial area like the Chungmuro printing alley can be a successful investment when combined with thorough analysis and planning.