Purchased for 12.6 Billion Won, Now Worth 30 Billion Won
Bought Above Market Price, But Area Emerged as a Hot Spot
The value of a building in Hannam-dong, purchased by actor Jang Donggun 14 years ago, is reported to have increased by approximately 17.4 billion won.
According to major media outlets on the 25th, citing Building Road Real Estate Brokerage, Jang purchased a building near "Comme des Garcons-gil" in Hannam-dong, Yongsan-gu, Seoul, in June 2011 for 12.6 billion won under his personal name.
The building sits on a land area of approximately 330.6 square meters (about 100 pyeong), with a total floor area of 1,466 square meters, and consists of two basement levels and five above-ground floors. It is located a three-minute walk from Hangangjin Station on Line 6, with "Comme des Garcons-gil" and the luxury residential complex "Nine One Hannam" nearby.
Jang has held the building since purchasing it from former Kyobo Bookstore chairman Shin Moonjae in 2011. At the time of purchase, the maximum secured amount for the loan was set at 4.8 billion won, suggesting a principal loan amount of about 4 billion won. It appears that Jang Donggun bought the building with approximately 9.3 billion won in cash, including transaction-related costs.
Jang purchased the building at a price about 4.15 billion won higher than the 8.45 billion won paid by the previous owner two years earlier.
Furthermore, in February 2012, eight months later, singer Psy bought a similarly sized building on the same street for 7.85 billion won, which was 4.75 billion won less than what Jang paid. This led some to view Jang's purchase as an example of an unsuccessful real estate investment, as it was considered expensive compared to the market price at the time.
However, the area has since emerged as a "hot place," with rental prices rising significantly. The current rental yield of the building is estimated to be at least 5% based on the purchase price. The first floor of the building now houses a Porsche Studio, an imported car brand.
Based on a recent case in which a corner building on a nearby main road was sold for 3.5 billion won per pyeong, real estate industry insiders estimate the current value of Jang's building at approximately 30 billion won.
Meanwhile, the value of Psy's building in Hannam-dong, located nearby, is currently assessed at 21.41 billion won. Compared to 13 years ago, this represents an increase of 13.56 billion won. The building currently houses a Starbucks.
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