"Real Estate Averaging" Song Seung-heon Expects 67.8 Billion KRW Profit

Purchase Price of Two Buildings Near Sinsa Station Around 15 Billion KRW
Current Value is 82.8 Billion KRW

Actor Song Seung-heon reportedly made a huge profit by using the 'water dilution' technique, a secret method known only to real estate experts, according to a report by News1 on the 17th citing a brokerage firm. Following the Starbucks building he originally owned near Sinsa Station, he also purchased the adjacent commercial building, becoming a major player in the Sinsa-dong real estate market.

In 2006, Song Seung-heon purchased a building in Jamwon-dong with a land area of 163 pyeong, a total floor area of 403 pyeong, and consisting of one basement floor to four above-ground floors, for 11.4 billion KRW. The building faces Gangnam-daero in front, a food alley behind, and is next to Sinsa Station. It is a one-minute walk from Exit 4 of Sinsa Station on Line 3, and a seven-minute walk from Nonhyeon Station, a transfer station for Line 7 and the Shinbundang Line. In 2017, ten years after the purchase, news broke that the Shinbundang Line would be added to Sinsa Station, and later the Wirye-Sinsa Line was also announced, significantly increasing the building’s market value. Five years after acquiring the building, Song Seung-heon remodeled it and opened a Starbucks on the first floor.

Song Seung-heon also purchased the building behind the main building for 3.6 billion KRW. He won an auction for an 84.5% stake in an old commercial building with one basement floor and two above-ground floors for 3 billion KRW, and later bought the remaining 15.5% stake for 650 million KRW. This site is in a Category 3 General Residential Area, which limits new construction to a building coverage ratio of 50% and a floor area ratio of 250% if built alone, but since it adjoins the Starbucks building site on the main road, its investment value increased. There are high expectations for redevelopment into a 13-14 story building. This investment utilized the 'water dilution' technique, a special secret method used by true real estate investment experts.

Recent nearby transactions show cases where the price per pyeong was 350 million KRW in October 2021, and current asking prices are around 360 million KRW per pyeong. Applying the median price of 355 million KRW per pyeong, the value of the buildings owned by Song Seung-heon reaches approximately 82.86 billion KRW. Considering that the purchase price of the two buildings was about 15 billion KRW, the expected profit amounts to 67.8 billion KRW.

In addition, Song Seung-heon owns several other real estate assets, including an apartment in Banpo-dong and a luxury villa in Cheongdam-dong. The commercial building near Jonggak Station, purchased for 23.5 billion KRW in 2018 through a 13 billion KRW loan under the family company 'Storm S Company,' was put on the market for 27 billion KRW last April.