Sinnonhyeon Station Food Alley 21 Billion Won Building Quick Sale Transaction Analysis: Gangnam Station Area Investment Information (ft. 4-Year Holding, 9 Billion Won Profit, Kiyoung F&B Acquisition)
Sinnonhyeon Station Food Alley, one of the representative bustling areas in Gangnam, is a core commercial district abundant with young foot traffic and continuous vibrant commercial activity. Concentrated with various restaurants, pubs, and commercial facilities, it is always a region that attracts the attention of investors. News of a small building located in this Sinnonhyeon Station Food Alley being quickly sold for 21 billion Won, recording a massive capital gain of 9 billion Won in just 4 years, is showing the astonishing potential of Gangnam station area investment to many real estate investors. Today, we will delve into this transaction case to conduct an in-depth analysis of the secrets to successful investment in small buildings in the Sinnonhyeon Station Food Alley and the investment appeal of quick sale properties in the Gangnam station area. We will also note that Kiyoung F&B, the operating company behind 'Kiyoung Charcoal Chicken' and 'Ddujjim', acquired this building.
Gangnam-gu Nonhyeon-dong 183-4,5, Transacted for 21 Billion Won
The building we will examine is located at Nonhyeon-dong, 183-4,5 in Gangnam-gu, and it was transacted for 21 billion Won in February 2025. This building was previously transacted for 12 billion Won in February 2021, exactly 4 years prior.
Key Features and Location Analysis of the Transacted Building:
- Prime Location in Sinnonhyeon Station Ultra-Station Area: It is an undisputed ultra-station area building located within walking distance of Sinnonhyeon Station on Subway Line 9. Sinnonhyeon Station is a transportation hub where Gangnam-daero and Teheran-ro meet, boasting overwhelming public transportation convenience and attracting vast foot traffic. Situated in the heart of the Gangnam Food Alley, it is a prime location for commercial facilities.
- Abundant Foot Traffic in Gangnam Food Alley: The area around the building is a representative Gangnam Food Alley concentrated with various restaurants, pubs, and cafes. It is bustling with young people and office workers on weekday evenings and weekends, with active commercial activities, which is advantageous for securing stable rental income for commercial spaces within the building.
- Zoning District: It belongs to the 'Second Class General Residential Zone'. While this is an area aimed at creating a pleasant environment primarily with low- and mid-rise residential buildings, in commercially active areas like the Sinnonhyeon Station Food Alley, there are many cases where properties are utilized as commercial facilities through zoning changes or efficient space utilization. Despite being a Second Class General Residential Zone, its commercial value is highly evaluated due to its location.
- Land Area and Total Floor Area: The land area is 163.65 pyeong (approx. 541㎡), and the total floor area is 460.60 pyeong (approx. 1522.65㎡). 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.
- Building Status: It is a B1F to 5F building completed on November 7, 1985. Having been completed approximately 40 years ago, it has the potential to further increase its value through remodeling or new construction of its exterior and interior facilities.
- Road Condition: It fronts a 2-lane road. Located on a back street within the Sinnonhyeon Station Food Alley, it still has sufficient accessibility for commercial facilities as it is in a high-traffic area even with a 2-lane road.
9 Billion Won Profit in 4 Years, The Astonishing Power of Sinnonhyeon Station Investment
The background to this building's ability to record a massive capital gain of 9 billion Won in just 4 years is a result of the combined effect of the unique golden location of the Sinnonhyeon Station Food Alley and the rapid appreciation of the Gangnam real estate market.
Investment Profit Analysis:
- February 2021 Transaction Price: 12.0 billion Won (approx. 73.17 million Won per pyeong)
- February 2025 Transaction Price: 21.0 billion Won (approx. 128.32 million Won per pyeong) (Held for exactly 4 years)
- 4 years: 9.0 billion Won capital gain
- Annual: 2.25 billion Won capital gain
- Monthly: 187.50 million Won profit (Simple capital gain analysis only)
In just 4 short years, the building's price increased by 9 billion Won, or 75%. The price per pyeong also jumped significantly in 4 years, from the low 70 million Won range to the high 120 million Won range. This calculation is based solely on simple capital gain and does not include rental income generated during the holding period, building maintenance costs, taxes, etc. Including rental income would result in an even higher actual investment yield. This transaction, which generated immense profit in a short period, is a clear example showing the appeal of investing in core station areas of Gangnam.
Key Secrets to Investment Success:
- Securing a Prime Location in Sinnonhyeon Station Food Alley: Acquiring the unique core location of the Sinnonhyeon Station Food Alley, which is abundant with young foot traffic and vitality, was the most fundamental prerequisite for successful investment. The power of the location is the basis for stable rental income and building value appreciation.
- Leveraging the Rapid Appreciation of the Gangnam Real Estate Market: The investor effectively leveraged the market conditions where the value of Gangnam real estate, especially commercial properties in station areas, sharply increased during the period from 2021 to 2025, realizing high capital gains. The strategy of reading the market trend was effective.
- Selecting a Building with Potential: Despite being built in 1985, the insight to invest based on the building's fundamental size and locational advantages, such as its ultra-station area location near Sinnonhyeon Station, a land area of 163 pyeong, and a total floor area of 460 pyeong, was crucial. It was a building with potential for further value increase through remodeling or new construction.
- Spotting a Quick Sale Property: The fact that it was a 'quick sale' transaction suggests the possibility that the property became available at a slightly lower price than market value due to the seller's circumstances. The ability to quickly spot quick sale properties in the market and seize the investment opportunity was important.
- Strategic Acquisition by Kiyoung F&B: The fact that Kiyoung F&B, an external dining franchise company operating famous brands like 'Kiyoung Charcoal Chicken' and 'Ddujjim', acquired this building is an interesting investment point. It is likely that they plan to utilize the building strategically, perhaps as their headquarters or by opening their own brand stores. This can further enhance the building's commercial value and rental stability.
Second Class General Residential Zone, Diverse Development Possibilities
Being located in a Second Class General Residential Zone might initially suggest lower utility than a commercial zone, but in the specific location of the Sinnonhyeon Station Food Alley, it offers diverse development possibilities.
- Commercial Facility Utilization: Under current laws, it is possible to construct sufficient neighborhood living facilities, such as shops and restaurants, within the limits of building coverage ratio and floor area ratio even in a Second Class General Residential Zone. As it is already a vibrant food alley commercial area, utilization as commercial facilities is easy.
- Mixed-Use Development of Residential and Other Purposes: There is also the possibility of mixed-use development by utilizing the floor area ratio, etc., for purposes such as residential units (e.g., urban living apartments) or office facilities on the upper floors.
- Future Value: Combining the locational advantage of being in the Sinnonhyeon Station ultra-station area with the potential of a Second Class General Residential Zone, the building's value can be further increased through future remodeling or new construction.
Land Price Relative to Official Standard Price, Reasonable Level
The land price of this building, transacted at approximately 128.32 million Won per pyeong, is about 2.76 times the official standard land price (공시지가) of approximately 46.48 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 2.76 suggests that while reflecting the market value of the core location in the Sinnonhyeon Station Food Alley, there might still be potential for further value increase compared to other prime locations in core Gangnam.
- Reasonable Quick Sale: Considering it was a 'quick sale', the level of 2.76 times the official standard price might have been an opportunity for the buyer to acquire a core location building at a reasonable price. It is an important indicator for evaluating investment appeal.
Conclusion: Gangnam Station Area Quick Sale, Don't Miss the Investment Opportunity
The Gangnam Sinnonhyeon Station Food Alley is a vibrant commercial district where young people, office workers, and tourists constantly visit. The overwhelming location of the Sinnonhyeon Station ultra-station area, abundant foot traffic, and the potential for diverse development in a Second Class General Residential Zone further enhance the building's investment value. This transaction, which recorded a remarkable capital gain of 9 billion Won in just 4 years, is a clear example showing how much profit a quick sale property in a Gangnam station area can bring to an investor.
Investing in quick sale properties in the Gangnam station area is an attractive opportunity with potential for high investment returns. However, thorough analysis of the market conditions, the building's physical condition and potential, and relevant laws and regulations is essential, along with the high investment cost. It is important to carefully analyze quick sale properties with the help of a reliable real estate expert and make prudent investment decisions.