Valuation check: 135 m² serviced apartment in Seoul, asking ₩1,014,000,000

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DaanGale

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Finding only one completed sale changed how much confidence I place in the three asking-price comparisons. The property is a 3-bed serviced apartment in Seoul, about 135 m² and in average condition, with an asking price of ₩1,014,000,000. Its natural light and location appeal to me, but the dated finishes and possible insurance burden need to be reflected somewhere.

My first income estimate assumed eleven months of rent, and I may also have allowed too little for repairs. Rather than applying neat percentage adjustments, I’m considering separate checks for renovation cost, price per square metre and the way larger units actually trade. Which fact should I establish first: the exact micro-location, remaining lease term and renewal provisions, full service charges, parking arrangement, or usable outdoor space?

I’ll also commission a local appraisal before treating my calculation as a dependable value.
 
I would give the completed sale much more weight than the three listings, provided it is genuinely comparable in building, use and location. For floor area, compare prices per square metre but don’t assume the rate scales evenly to 135 m². For condition, renovation estimates are more useful than a generic percentage deduction. The missing fact most likely to change my view is the full service-charge burden and who pays it.
 
When you say eleven months of rent, is that gross rent before service charges, management costs, insurance and vacancy-related expenses? That distinction matters more than a finely tuned floor-area adjustment.

I’d also want the lease length and any break or renewal terms. A current rent figure is less persuasive if it cannot reasonably continue. Parking should be separated where possible rather than buried in the apartment value.
 
I’m not sure service charges are the single biggest unknown. With only one completed comparable, exact micro-location and whether it is in the same building or a genuinely similar building could dominate everything else. Light can also vary materially by floor and orientation even within one development.

I would grade condition room by room—kitchen, bathrooms, flooring and building systems—rather than label the whole unit “average.” Dated but functional is different from work that must be done immediately.
 
Build a small comparison table rather than forcing one adjustment range: completed or asking price, floor area, price per m², building and micro-location, floor/light, condition, parking, outdoor space, service charges and lease details. Mark unknowns instead of estimating them.

Then obtain repair quotations and test the income calculation under both the present reserve and a higher one. If the valuation only supports ₩1,014,000,000 with optimistic assumptions on several missing items, that is useful information in itself.
 
This has clarified where my analysis is weak. I don’t yet have a reliable split showing which service charges fall on the owner, and my lease information is not detailed enough to judge how durable the rent is. I’ll request both, confirm whether the completed sale matches the same micro-location and building type, and separate parking where the evidence allows.

I’ll also replace the broad condition discount with actual repair estimates and run the eleven-month income case with a larger reserve before taking everything to the local appraiser.
 
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