Hyun Bin, Who Purchased an Old House, Gains 14 Billion Won in Market Price Using This Method

Purchased an Old House, Demolished It, and Built a New Building Himself
Expected to Make a 14 Billion KRW Capital Gain Based on Recent Market Prices

Actor Hyun Bin is expected to make a capital gain of 14 billion KRW from a small building he purchased as an old house 12 years ago and rebuilt.

According to Building Road Real Estate Brokerage Corporation on the 12th, Hyun Bin purchased an old house on a 110-pyeong (approximately 363.6㎡) land located on a side street of Dosan-daero in Cheongdam-dong, Gangnam-gu, Seoul, near the southern end of Yeongdong Bridge, for 4.8 billion KRW in September 2013.

Yonhap News

The house was an old building completed in 1991, and at the time of purchase, it was relatively cheaper than the surrounding market price.

Hyun Bin obtained permission to use the building as a neighborhood living facility, demolished the old house, and directly constructed a small building with 4 basement floors and 7 above-ground floors (total floor area of 481 pyeong) in 2015.

The construction cost is estimated to be about 8 billion KRW at the time, including demolition, design, supervision fees, the expected construction cost of 2.5 billion KRW, and other incidental expenses. It is known that Hyun Bin completed the building construction entirely in cash without any loans, registering the ownership under a family corporation.

Currently, the agency to which Hyun Bin belongs uses three floors of the building. The other floors are leased to tenants in related industries suitable for the Cheongdam-dong area.

Looking at recent market prices, a building on a side street of Dosan-daero that was remodeled in 2015 was traded at 182 million KRW per 3.3㎡ in April last year. Also, a building located 130 meters away from Hyun Bin’s building was traded at 227 million KRW per 3.3㎡ in December 2022.

Accordingly, the estimated appraisal value of Hyun Bin’s building is 14 billion KRW higher than the purchase price. Similar buildings in the neighborhood with comparable construction years are listed at 200 million to 250 million KRW per pyeong.