Analysis of Hansung University Station Ultra-Station Area 1.4 Billion Won New Construction Plot: Seongbuk-dong Investment Information (ft. Future Value)
Seongbuk-dong, Seongbuk-gu, Seoul, is a traditional area with a long history and tranquil atmosphere. Recently, the area around Hansung University Station has been gaining attention as a new investment destination, as its convenient transportation environment and development potential are being recognized. News of a new construction plot located in the ultra-station area of Hansung University Station being transacted for around 1.4 billion Won is attracting significant attention from many real estate investors. This is because opportunities to invest a small amount in the 1 billion Won range in a core station area in Seoul for a plot where new construction is possible are rare. Today, we will delve into this transaction case to conduct an in-depth analysis of the investment value and locational advantages of the Hansung University Station ultra-station area new construction plot, and its potential for future value appreciation.
Seongbuk-dong 1-ga 75-3, Seongbuk-gu, Transacted for 1.4 Billion Won
The land we will examine is located at Seongbuk-dong 1-ga, 75-3 in Seongbuk-gu, and it was transacted for 1.4 billion Won in February 2025.
Key Features and Location Analysis of the Transacted Land:
- Hansung University Station Ultra-Station Area: It is an undisputed ultra-station area plot located within walking distance of Hansung University Station on Subway Line 4. Line 4 is a core line with excellent access to downtown Seoul and Gangnam, and Hansung University Station is an important station that secures abundant foot traffic and revitalizes commercial activity in the surrounding area. Excellent public transportation convenience is a key factor increasing the value of the land.
- Potential for Investment in the 1 Billion Won Range: The sale price of 1.4 billion Won is a relatively manageable amount for purchasing land where new construction is possible in a core station area in Seoul. It offers very attractive accessibility for investors seeking small investments in the 1 billion Won range, and can be a good opportunity for investors expecting value appreciation through new construction.
- Potential for New Construction: Although information about the completion year of the existing building is not available, the focus of the transaction being on a 'new construction plot' suggests that there was a plan to build a new building for utilization. New construction allows for building design and construction tailored to the investor's purpose, and building to the latest standards can maximize tenant attraction and building value appreciation.
- Second Class General Residential Zone: This land is located in a 'Second Class General Residential Zone'. This is an area primarily for low- and mid-rise residential buildings aimed at creating a pleasant environment. However, based on its locational characteristics as a Hansung University Station ultra-station area, it has the potential for diverse uses such as small commercial facilities and offices. While there are limitations on building coverage ratio and floor area ratio, efficient architectural design is possible by utilizing the characteristics of the zoning district.
- Fronting a 6m Road: It fronts a 6m road, providing good vehicle and pedestrian access. Although not a main road, it is located on a back road of a station area, ensuring a certain level of exposure to foot traffic.
- Land Area and Price Per Pyeong: The land area is 29.49 pyeong (approx. 97.5㎡), and the sale price of 1.4 billion Won corresponds to approximately 47.47 million Won per pyeong based on the land area. The price in the high 40 million Won range per pyeong is interpreted as a result reflecting the locational strength of the Hansung University Station ultra-station area and the potential for new construction.
Maximizing Future Value Through New Construction
Purchasing a plot where new construction is possible is an important investment strategy that can maximize future value appreciation.
- Customized Building Construction: The size, design, interior facilities, etc., of the building can be freely designed and constructed according to the investor's purpose (rental income, company headquarters use, etc.). This is advantageous for increasing building utilization and maximizing tenant preference.
- Application of Latest Standards: Building to the latest construction standards and energy efficiency standards can reduce maintenance costs and increase building operational efficiency.
- High Tenant Attraction: New buildings are equipped with clean and modern facilities, making them highly competitive in attracting tenants. This contributes to securing stable rental income.
- Building Value Appreciation Potential: New construction can significantly increase the physical and market value of the building compared to purchasing and remodeling an old building. This has high potential to lead to high capital gains upon future sale. Like painting on a 'blank canvas', the potential for new construction holds infinite possibilities.
Diverse Utilization Possibilities in Second Class General Residential Zone
Although it is land located in a Second Class General Residential Zone, it can be constructed and utilized for various purposes by leveraging the locational characteristics of the Hansung University Station ultra-station area.
- Residential Facilities: It can be constructed as residential facilities such as small apartments, urban living apartments, or luxury homes to meet the abundant residential demand from nearby office workers and university students.
- Commercial Facilities and Offices: Commercial spaces (cafes, restaurants, retail shops, etc.) can be constructed on the ground floor, and small offices on the upper floors, to generate rental income. Station areas have steady demand for commercial and office facilities.
- Mixed-Use Development: A strategy of constructing a mix of residential and commercial/office facilities to increase land utilization is also possible.
- Diverse Options: There is flexibility to construct for the most suitable purpose according to the investor's goals and market conditions, utilizing it as a 'versatile space'.
Land Price Relative to Official Standard Price, Relatively Reasonable
The price of this land, transacted at approximately 47.47 million Won per pyeong, is about 1.83 times the official standard land price (공시지가) of approximately 26.00 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 1.83 suggests that it reflects the locational strength of the Hansung University Station ultra-station area and the potential for new construction. Considering it is a core station area in Seoul, it can be assessed as being transacted at a relatively reasonable level.
- Reasonable Investment Opportunity: It was an attractive opportunity for the investor to secure a new construction plot in a core station area in Seoul at a reasonable land price relative to the official standard price. Like reasonable consumption focused on 'cost-effectiveness', it is an important indicator for evaluating investment appeal.
Future Investment Outlook and Precautions
Investing in a Hansung University Station ultra-station area new construction plot is an attractive investment property that can expect future value appreciation based on excellent transportation accessibility, potential for new construction, and the diverse utilization possibilities of a Second Class General Residential Zone.
However, the following points should be carefully considered during investment:
- New Construction Costs and Time: Significant construction costs and time are required depending on the intended use. Risks such as unexpected cost increases or delays in construction time must be fully considered.
- Building Regulations and Laws: Specific building regulations and laws, such as building coverage ratio, floor area ratio, and height restrictions applicable to the Second Class General Residential Zone, must be carefully checked, and expert advice should be sought.
- Rental/Sales Demand and Competitive Environment: The expected rental rates or sale prices after new construction, the risk of vacancy/unsold units, and the competitive environment with surrounding new buildings must be carefully analyzed.
- Regional Development Plans: Identify whether there are any ongoing or planned additional development projects around Hansung University Station and predict the impact these developments will have on the land value.
- Initial Investment Cost: The cost of purchasing the land and new construction requires significant initial investment. A thorough funding plan must be established.
Detailed Transaction Analysis
Let's examine the specific transaction details of the land at Seongbuk-dong 1-ga 75-3, Seongbuk-gu.
※ Transaction Details
- Location: Seongbuk-dong 1-ga 75-3, Seongbuk-gu
- Subway Station: Hansung University Station (Line 4 Ultra-Station Area)
- Transaction Date: February 2025
- Sale Price: 1.4 billion Won
- Land Price (Per Pyeong): 47.47 million Won
- Land Area: 29.49 pyeong (97.5㎡)
- Building Area (Total Floor Area): 28.34 pyeong (93.67㎡) (Existing building size)
- Zoning District: Second Class General Residential Zone
- Floors: 1 story above ground (Existing building floor count)
- Road Condition: 6m road
- Year of Completion: (Information on existing building completion year not available)
- Official Standard Land Price (공시지가): Approx. 26.00 million Won (Per Pyeong)
- Land Price Relative to Official Standard Price: Approx. 1.83 times
Key Features:
- Hansung University Station ultra-station area
- New construction plot (existing building presumed to be old)
- Small investment in the 1 billion Won range
- Land area 29.49 pyeong, Second Class General Residential Zone
- Fronting a 6m road
This transaction is a case where land with an existing building of 1 story above ground and a total floor area of 28.34 pyeong on a land area of approximately 29.49 pyeong was transacted for 1.4 billion Won, at approximately 47.47 million Won per pyeong. It boasts the best locational conditions as a Hansung University Station ultra-station area and is a 29.49-pyeong plot located in a Second Class General Residential Zone. In February 2025, it was a very attractive investment opportunity to invest in land where new construction is possible in a core station area in Seoul for a relatively manageable amount in the mid-1 billion Won range. The locational strength and potential for new construction were reflected in the high ratio of land price relative to the official standard price. It is an investment case where a building tailored to the investment purpose can be built through new construction, with expectations for rental income and asset value appreciation.
Conclusion: Hansung University Station New Construction Plot, Utilizing Ultra-Station Area Location and Development Potential
The case study of the 1.4 billion Won new construction plot transaction in Seongbuk-dong, Seongbuk-gu, Seoul, shows that even with a small investment in the 1 billion Won range, attractive investment opportunities can be found in core areas of Seoul when the strength of a Hansung University Station ultra-station area location is combined with the potential for new construction in a Second Class General Residential Zone. Excellent transportation accessibility and the potential to maximize value through customized building construction are key factors that increase the investment appeal of this plot.
Investing in a Hansung University Station ultra-station area new construction plot is an attractive option that offers potential for stable rental income or sales profit, and long-term asset value appreciation, based on a convenient transportation environment and development potential. However, it is important to carefully analyze risk factors such as new construction costs and time, building regulations, and rental/sales risk, and make wise investment decisions with expert advice.