Jeon Ji-hyun's Building in Deungchon-dong Increased by 4.7 Billion Won in 3 Years

Purchased the Building in 2022... Current Market Value at 5.52 Billion KRW
Long-term Lease as LG Best Shop Store

Actress Jeon Ji-hyun's building in Deungchon-dong, Gangseo-gu, Seoul, which she purchased three years ago, is reported to have increased in value by 4.7 billion KRW compared to the purchase price over the three years.

According to Building Road real estate brokerage firms on the 2nd, the assessed value of Jeon's Deungchon-dong building as of the 24th of last month is 52.96 billion KRW. The land appraisal value is 47.96 billion KRW, and the building appraisal value is 5 billion KRW.

In February 2022, Jeon purchased a building under her name located near the Gangseo-gu Office intersection on Gonghang-daero, with a land area of 2,839㎡ (859 pyeong) and three above-ground floors, for 50.5 billion KRW.

The building was constructed in 2019 and is known to be in excellent condition, similar to a newly built structure. It is also conveniently located within a 10-minute walk to Gayang Station on Subway Line 9, providing good transportation access. Additionally, the ‘Daejang Hongdae Line,’ which will run from Hongdae Entrance Station in Seoul to Daejang District in Bucheon, is planned to be developed at the Gangseo-gu Office entrance intersection.

Actor Jeon Ji-hyun, Yonhap News

According to the certified copy of the register, the maximum bond amount is 33.06 billion KRW, suggesting a loan principal of 28 billion KRW and a cash purchase amount of 22.5 billion KRW.

Since the purchase, Jeon's building has been used as an LG Best Shop electronics store. LG Best Shop is reported to have signed a long-term 10-year lease agreement since the building's construction. The security deposit is 600 million KRW, and the monthly rent is 160 million KRW.

The yield based on the purchase price is 3.9%. Calculating the interest rate at 3.5% per annum at the time of purchase in 2022, the net income after deducting loan interest from the rent is estimated to be around 70 to 80 million KRW per month.

Considering that the average increase rate of individual official land prices across Seoul announced last year was 1.3%, the current estimated market price is calculated to be 55.2 billion KRW.

It is interpreted that Jeon purchased the building for stable cash flow from a high-quality tenant business and long-term capital gains.

Furthermore, this building currently has a floor area ratio of about half of the legal maximum of 250%, so future reconstruction or remodeling is also considered possible.