"After Purchasing Low-Rise Building, 10 Billion Won Profit" Gong Hyo-jin Puts Seogyo-dong Building Up for Sale

Increasing Value Through Reconstruction After Purchasing Low-Rise Buildings
Expected to Yield at Least 5 Billion KRW in Capital Gains

Actress Gong Hyo-jin has put up for sale a building in Seogyo-dong that she purchased in 2016 for 6.3 billion KRW, with an asking price of 16 billion KRW. If the transaction occurs at the desired price, she would realize a profit of approximately 10 billion KRW in just seven years based on simple calculations.

According to the real estate industry on the 4th, Gong Hyo-jin is pushing to sell the 'ROY714' building located at 366-7 Seogyo-dong, Mapo-gu, Seoul, which she owns. The listing price is 16 billion KRW, approximately 103 million KRW per 3.3㎡ of land.

Actress Gong Hyo-jin has put up for sale a building in Seogyo-dong, which she purchased in 2016 for 6.3 billion won, at 16 billion won. If the transaction is made at the desired price, she would make a profit of about 10 billion won in just 7 years based on a simple calculation.
[Photo by Asia Economy DB]

According to the real estate registry, the building was purchased by the building rental company 'ROY714' in January 2016 for a total of 6.3 billion KRW. The company secured a 5 billion KRW loan using another building it owned in Hannam-dong as collateral and invested 1.3 billion KRW of personal funds to acquire the two-story detached house. At that time, the price per 3.3㎡ was in the 40 million KRW range, significantly cheaper than the surrounding 70 million KRW range.

'ROY714' is a corporation in which Gong Hyo-jin owns 50% of the shares and serves as the representative. Purchasing real estate under a corporate name allows for borrowing more money and obtaining more favorable interest rates compared to individual purchases, which appears to be the strategy utilized.

Shortly after the purchase, she demolished the building and completed a new building in September 2017 with a total of nine floors: three basement levels and six above ground. The total floor area is 1,745.09㎡, securing a much larger space than before through new construction.

Experts analyze that purchasing a low-rise building and rebuilding it increased the building's value. They predict that excluding construction costs, Gong Hyo-jin will make at least a 5 billion KRW capital gain.

Meanwhile, Gong Hyo-jin married singer-songwriter Kevin Oh, who is ten years her junior, in October last year.