Noryangjin Station Main Road Hospital Building, 2 Billion KRW Transaction Analysis Did Investment Fail Despite Noryangjin New Town Potential? (ft. Past Transactions, Profitability Analysis)
A hospital building located on the 4-lane main road at 236-4 Noryangjin-dong, Dongjak-gu, was transacted for 2 billion KRW, attracting investors' attention. Despite being an area with the Noryangjin New Town development potential, an analysis of the investment return over 3 years showed a result close to 'investment failure'. We analyze the cause of the investment failure by comprehensively reviewing past transaction history, current rental situation, and surrounding market prices, and suggest future investment directions.
Noryangjin Station Main Road Hospital Building, 2 Billion KRW Transaction Information
In March 2025, a hospital building located at 236-4 Noryangjin-dong, Dongjak-gu, was transacted for 2 billion KRW. This building, consisting of a total of 4 floors from basement 1st floor to ground 3rd floor, has a land area of 20.87 pyeong and a building area of 50.02 pyeong. It was completed in 1988 and boasts excellent visibility, being adjacent to Noryangjin Station and located on a 4-lane main road.
- Location: 236-4 Noryangjin-dong, Dongjak-gu
- Sale Price: 2 Billion KRW
- Land Area: 20.87 pyeong
- Building Area: 50.02 pyeong
- Completion Year: 1988.10.17
- Zoning Area: Zone 3 General Residential Area
Past Transaction History and Profitability Analysis
This building was transacted for 1.84 billion KRW in April 2022 and was re-transacted for 2 billion KRW after 3 years. Calculating only the simple capital gain shows a profit of 160 million KRW, but considering actual investment costs such as acquisition tax and financing interest, it is judged to have resulted in a loss.
- April 2022 Sale Price: 1.84 Billion KRW (87.62 Million KRW per pyeong)
- March 2025 Sale Price: 2 Billion KRW (95.82 Million KRW per pyeong)
- Capital Gain: 160 Million KRW
- Annual Profit: 53.33 Million KRW
- Monthly Profit: 4.44 Million KRW
Analysis of Investment Failure Causes
The reasons for the low profitability during the 3-year investment period can be analyzed as follows:
- High acquisition tax and financing interest: Decrease in actual profitability
- Insufficient understanding of rental situation and surrounding market prices: Failure to set an appropriate sale price
- High sale price close to 100 million KRW per pyeong: Expected difficulty in future sales
In particular, as the current sale price is high, close to 100 million KRW per pyeong, difficulty in future sales is anticipated.
Suggesting Investment Direction
Considering the Noryangjin New Town development potential, investment should be made from a long-term perspective. Remodeling to maximize rental income and increase building value can be considered. Also, it is important to set an appropriate sale price by closely analyzing the surrounding market prices and rental situation.
Conclusion
The Noryangjin Station main road hospital building, despite the Noryangjin New Town development potential, showed a result close to investment failure based on the 3-year investment return analysis. When investing in the future, it is necessary to consider actual investment costs such as acquisition tax and financing interest, and make a cautious investment decision by closely analyzing the surrounding market prices and rental situation.
The building at 236-4 Noryangjin-dong, Dongjak-gu, was sold in March 2025.
※ Transaction Details
- Location: 236-4 Noryangjin-dong, Dongjak-gu
- Subway Station: Noryangjin Station
- Transaction Date: March 2025
- Sale Price: 2 Billion KRW
- Land Price (Per Pyeong): 95.82 Million KRW
- Land Area: 20.87 pyeong (69㎡)
- Building Area: 50.02 pyeong (165.36㎡)
- Zoning Area: Zone 3 General Residential Area
- Floors: B1 ~ 3F
- Road Condition: 4-lane road
- Completion Year: 1988.10.17
- Official Land Price (Gongsi Jiga): Approx. 35.41 Million KRW
- Land Price vs. Official Land Price Ratio: Approx. 2.71 times
※ Past Transaction Details
- 1. Sale in Apr '22 for 1.84 Billion KRW (87.62 Million KRW per pyeong)
- 2. Sale in Mar '25 for 2 Billion KRW (95.82 Million KRW per pyeong) (Held for approx. 3 years)
- 3. 160 Million KRW Capital Gain over 3 years
- 53.33 Million KRW Annual Capital Gain
- 4.44 Million KRW Monthly Profit (Analyzing only simple capital gain)