Gangnam-gu Yeoksam-dong, Seolleung Station Station Area 3.9 Billion KRW New Building Site Transaction Analysis Is the Easing of Long-Term Special Capital Gains Deduction for One Home an Investment Opportunity?
A new building site located at 697-64 Yeoksam-dong, Gangnam-gu, has been transacted for 3.93135 billion KRW, attracting investors' attention. Coupled with the locational advantage of being in the Seolleung Station area and policy changes such as the easing of the long-term special capital gains deduction for one home and the relaxation of floor area ratio, demand for new building sites is expected to increase. However, actual investment returns require careful analysis.
Gangnam-gu Yeoksam-dong New Building Site, 3.9 Billion KRW Transaction Information
In March 2025, a new building site located at 697-64 Yeoksam-dong, Gangnam-gu, was transacted for 3.93135 billion KRW. This building, consisting of a total of 3 floors from basement 1st floor to ground 2nd floor, has a land area of 52.03 pyeong and a building area of 75.49 pyeong. It is located in the Seolleung Station area, offering convenient transportation, and is densely surrounded by various amenities.
- Location: 697-64 Yeoksam-dong, Gangnam-gu
- Sale Price: 3.93135 Billion KRW
- Land Area: 52.03 pyeong
- Building Area: 75.49 pyeong
- Zoning Area: Zone 2 General Residential Area
- Subway Station: Seolleung Station
Past Transaction History and Profitability Analysis
This building was transacted for 3.8 billion KRW in September 2024 and was re-transacted for 3.93135 billion KRW after 1 year. Calculating only the simple capital gain shows a profit of 131.35 million KRW, but considering actual investment costs such as acquisition tax and financing interest, it is judged to have resulted in a loss.
- September 2024 Sale Price: 3.8 Billion KRW (73.08 Million KRW per pyeong)
- March 2025 Sale Price: 3.93135 Billion KRW (75.56 Million KRW per pyeong)
- Capital Gain: 131.35 Million KRW
- Monthly Profit (Based on simple capital gain): 10.95 Million KRW
Impact of Easing Long-Term Special Capital Gains Deduction for One Home on New Building Site Investment
With the amendment of the Income Tax Act Enforcement Decree, the provision for the long-term special capital gains deduction for one homeowner has been adjusted from the time of transfer to the time of contract. This is expected to have a positive impact on investors who were hesitant about transacting residential buildings due to tax issues, leading to an increase in transaction volume.
Furthermore, for a limited period of 3 years, benefits from the relaxation of the floor area ratio can be received, allowing for an additional 50% floor area ratio during new construction. This can act as a factor increasing the demand for new building sites.
Considerations and Analysis for Investment
This building is located in the Seolleung Station area, making it suitable for use as a company building or for generating rental income. However, its location in a residential area where commercial activity is not well developed, as well as narrow roads and hilly terrain, can be disadvantages. These factors should be comprehensively considered when investing.
Conclusion
The new building site in Yeoksam-dong, Gangnam-gu, can see its investment value increase coupled with policy changes such as the easing of the long-term special capital gains deduction for one home and the relaxation of the floor area ratio. However, actual investment returns require careful analysis, and a cautious investment decision should be made considering the locational advantages and disadvantages.
The building at 697-64 Yeoksam-dong, Gangnam-gu, was sold in March 2025.
※ Transaction Details
- Location: 697-64 Yeoksam-dong, Gangnam-gu
- Subway Station: Seolleung Station
- Transaction Date: March 2025
- Sale Price: 3.93135 Billion KRW
- Land Price (Per Pyeong): 75.56 Million KRW
- Land Area: 52.03 pyeong (172㎡)
- Building Area: 75.49 pyeong (249.54㎡)
- Zoning Area: Zone 2 General Residential Area
- Floors: B1 ~ 2F
- Road Condition: 4m road
- Completion Year: 1990.04.23
- Official Land Price (Gongsi Jiga): Approx. 27.27 Million KRW
- Land Price vs. Official Land Price Ratio: Approx. 2.77 times
※ Past Transaction Details
- 1. Sale in Sep '24 for 3.8 Billion KRW (73.08 Million KRW per pyeong)
- 2. Sale in Mar '25 for 3.93135 Billion KRW (75.56 Million KRW per pyeong) (Held for approx. 1 year)
- 3. 131.35 Million KRW Capital Gain over 1 year
- 10.95 Million KRW Monthly Profit (Analyzing only simple capital gain)