Purchased parking lot site for 11.9 billion KRW in 2006
Building construction started in 2020... Current market value 50 billion KRW
Actor Kim Hee-ae's building in Cheongdam-dong is estimated to have gained approximately 40 billion KRW in capital gains over 18 years.
On the 27th, News1 reported on Kim Hee-ae's real estate investment case in Cheongdam-dong, Gangnam-gu, Seoul, citing the announcement from Building Road Real Estate Brokerage Corporation. In July 2006, Kim Hee-ae purchased three parking lot plots with a total land area of 196.35 pyeong located along Dosan-daero in Cheongdam-dong, Gangnam-gu, Seoul, for 11.9 billion KRW. At the time of purchase, the price per pyeong was approximately 60.61 million KRW, with a maximum bond amount estimated at 3.6 billion KRW and a loan principal of about 3 billion KRW. The remaining 8.9 billion KRW appears to have been paid in cash.
The property is located in Cheongdam-dong, known as a luxury shopping street, just a 7-minute walk from Apgujeong Rodeo Station on the Suin-Bundang Line. Surrounding the area are global luxury brands such as Louis Vuitton, Gucci, and Armani.
After purchasing the property in 2006 for use as a parking lot, Kim Hee-ae operated it as such for 14 years without significant development, before starting new building construction in 2020. Industry insiders view the purchase as an investment focused more on value appreciation than parking rental income from the start. The completed building now spans from four basement floors to five above ground. From basement level 2 to the 5th floor, high-end tenants such as dermatology clinics and flagship stores occupy the space, while basement levels 3 and 4 are used for management and mechanical parking.
Kim Kyung-hyun, manager at Building Road Real Estate Brokerage Corporation, explained, "The building benefits from a unique structure that utilizes the sloped terrain, exposing basement level 1 like a ground floor, which provides an advantage in terms of floor area ratio. Thanks to this, construction was possible down to basement level 4, and although it is a 5-story building, it visually appears like a 6-story structure."
The current market value of the building owned by Kim Hee-ae is estimated at about 50 billion KRW. Based on a newly constructed building nearby that was traded at 230 million KRW per pyeong in June, and considering Kim Hee-ae's building’s advantageous corner location, it is valued at 254 million KRW per pyeong. Applying this to the land area of 196.35 pyeong results in approximately 50 billion KRW.
Manager Kim analyzed, "Compared to the purchase price in 2006, it is expected to yield about 38.1 billion KRW in capital gains over 18 years. The current monthly rent is known to be around 100 million KRW, and based on the purchase cost, an annual yield of over 6.5% can be expected."
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