Davichi's Kang Minkyoung's 6.5 Billion Won Hapjeong Building Sees Zero Market Profit... What Happened?

Purchased During 2022 Real Estate Boom, Value Has Not Increased
Expert: "Bought for Personal Use... Should Be Viewed Long-Term"

It has been analyzed that there is virtually no market profit on the building in Hapjeong-dong, Mapo-gu, Seoul, purchased three years ago by Kang Minkyoung, a member of the female duo Davichi.

On May 4, News1, citing Building Road Real Estate Brokerage, reported that Kang purchased a neighborhood living facility building in Hapjeong-dong with a land area of 145.45 square meters (44 pyeong), consisting of one basement floor and five above-ground floors, for 6.5 billion won in April 2022.

At the time, Kang is estimated to have financed about 5.5 billion won, approximately 80% of the purchase price, through a loan, with monthly interest payments estimated to be around 16 million won. A representative from Building Road Real Estate estimated the actual investment, including an additional 400 million won in transaction-related costs, to be about 1.4 billion won.

The building is located within a six-minute walk from Hapjeong Station, a transfer station for Seoul Subway Lines 2·6. It is approximately 400 meters from Sangsu Station on Line 6 and about 500 meters from Hapjeong Station on Line 2.

Davichi member Kang Minkyoung Yonhap News

After purchasing the building, Kang changed its exterior to white and is reportedly using it as the flagship store and fashion office for her own fashion brand.

However, since Kang purchased the building during a period of rising real estate prices and its value has not increased further, it is known that there is currently virtually no market profit.

Kim Kyunghyun, Deputy Director at Building Road Real Estate Brokerage, told News1, "Rather than for investment profit, she purchased the building for her own use, so she is paying interest instead of rent. It appears she bought it with a more long-term perspective."

He added, "Since the building is located in a vibrant commercial area, she is currently using it for direct management. If she decides to sell it after some time, she may be able to realize a market profit then."

Kang, who debuted as a member of Davichi in 2008, has released hit songs such as '8282', 'Don't Say Goodbye', 'Love and War', and 'Women's Generation'. In 2020, she launched an online women's clothing shopping mall.