Busan Mandok-dong 2.7 Billion KRW Small Building Transaction Analysis: 'Golden Location' Investment Strategy in Front of Large Apartment Complex (ft. Redevelopment Potential)
A building located at 916-9 Mandok-dong, Buk-gu, Busan, was transacted for 2.755 billion KRW in February 2025, attracting the attention of investors. This small building, boasting ample land area, a location on a 4-lane main road, and surrounding redevelopment potential, what kind of appeal does it hold? We conduct an in-depth analysis of the secrets to successful investment and forecast its future value.
Mandok-dong 'Golden Location' Small Building Transaction Information
In February 2025, a building located at 916-9 Mandok-dong, Buk-gu, Busan, was sold for 2.755 billion KRW. It is a building with 3 basement floors and 6 above-ground floors, with a land area of 172.43 pyeong and a building area of 806.33 pyeong, completed on January 20, 1992.
- Location: 916-9 Mandok-dong, Buk-gu, Busan
- Transaction Price: 2.755 Billion KRW
- Land Area: 172.43 pyeong (570㎡)
- Building Area: 806.33 pyeong (2665.54㎡)
- Zoning Area: Zone 2 General Residential Area
'Abundant Hinterland Demand' in Front of Large Apartment Complex, Plus Redevelopment Potential
The biggest appeal of this building is that it is located directly in front of a large apartment complex, securing abundant hinterland demand. The residents of the large apartment complex, consisting of 5,000 households, can be a strong foundation guaranteeing stable rental income for this building. Furthermore, the ongoing redevelopment projects in Mandok 3 and 4 zones are also positive factors. Upon completion of the redevelopment, improvement of the residential environment and vitalization of the commercial area are expected, which could lead to an increase in building value.
- Abundant Hinterland Demand: 5,000 households in large apartment complex
- Mandok 3 & 4 Zone Redevelopment: Improvement of residential environment and commercial area vitalization
- High Investment Value: Stable rental income and future value increase
Low Price per Pyeong & Large Land Area, High Potential for Development
The land price of this building is 15.98 million KRW per pyeong, which is relatively low compared to the surrounding market prices. Also, the large land area of 172 pyeong presents various development possibilities. New construction of a 9-story building is also easy, and highly versatile investments such as integrated development of commercial and residential facilities can be expected.
- Low Price per Pyeong: 15.98 Million KRW, high price competitiveness
- Large Land Area: 172 pyeong, various development possibilities
- High Investment Return: Expectation of value increase through new construction
Small Building Investment, What is the Success Strategy?
This Mandok-dong small building transaction is a case study that possesses various investment appeals: low price, abundant hinterland demand, large land area, and development potential. However, small building investment always involves risks, so the following points must be carefully checked before investing.
- Building Condition and Age: Review the need for remodeling
- Future Development Plans: Analyze surrounding area development potential and impacts
- Tenant Demand: Survey commercial area characteristics and tenant preferences
- Profitability Analysis: Comprehensive profitability analysis including rental income and capital gains
- Expert Assistance: Seek assistance from a real estate expert for investment decision
Conclusion
The Busan Mandok-dong small building transaction case demonstrates a model of successful real estate investment. The reasonable price, abundant development potential, and excellent location conditions make it an attractive investment property that can bring high returns to investors. However, investment risks should be minimized through careful analysis and planning before investing.
The building at 916-9 Mandok-dong, Buk-gu, Busan, was sold in January 2025.
※ Transaction Details
- Location: 916-9 Mandok-dong, Buk-gu, Busan
- Subway Station: Namsanjeong Station
- Transaction Date: January 2025
- Sale Price: 2.755 Billion KRW
- Land Price (Per Pyeong): 15.98 Million KRW
- Land Area: 172.43 pyeong (570㎡)
- Building Area: 806.33 pyeong (2665.54㎡)
- Zoning Area: Zone 2 General Residential Area
- Floors: B3 ~ 6F
- Road Condition: 4-lane road
- Completion Year: 1992.01.20
- Official Land Price (Gongsi Jiga): Approx. 15.54 Million KRW
- Land Price vs. Official Land Price Ratio: Approx. 1.03 times
※ Past Transaction Details
- 1. Sale in Jul '14 for 2.52 Billion KRW (14.65 Million KRW per pyeong)
- 2. Sale in Jan '25 for 2.755 Billion KRW (15.98 Million KRW per pyeong) (Held for approx. 11 years)
- 3. 235 Million KRW Capital Gain over 11 years
- 21.36 Million KRW Annual Capital Gain
- 1.78 Million KRW Monthly Profit (Analyzing only simple capital gain)
Transaction information for the building in Mandok-dong, Busan, B3~6F, it was of considerable size and had excellent tenants.