Building Purchased for 5.1 Billion Won in 2018 Now Valued at 11 Billion Won
Value Boosted by Proximity to Ttukseom Station and Remodeling
The asset value of a building in Seongsu-dong, Seoul, owned by rapper and producer Zico, has reportedly increased by approximately 5.2 billion won over the eight years since its purchase.
On January 17, Building Road Real Estate Agency announced that Zico purchased a building located in Seongsu-dong, Seongdong-gu, under his own name for 4.8 billion won in February 2018. The actual purchase cost, including acquisition tax and brokerage fees, is estimated to be around 5.1 billion won.
It is understood that Zico utilized a loan of about 3 billion won at the time of purchase. The maximum secured amount on the registry is 3.6 billion won, which is generally about 120% of the actual loan amount, according to standard estimates.
The building is located in a quasi-industrial area and consists of one basement level and four above-ground floors, with a total floor area of approximately 890.1 square meters (260 pyeong). The basement and first floor are leased as commercial spaces, while the second to fourth floors are rented as office spaces. Originally completed in 1987, the building underwent remodeling in 2014, and both its exterior and interior are reportedly in good condition.
The surrounding location is also considered a positive factor. The building is just a three-minute walk from Ttukseom Station on Subway Line 2, which is seen as a competitive advantage for attracting tenants.
The current market value of the building is estimated to be around 11 billion won. This represents an increase of about 5.2 billion won compared to the purchase price, reflecting recent transactions in the area where buildings of similar age have been sold for approximately 110 million won per pyeong. A representative from Building Road Real Estate Agency explained, "Based on a land area of 100 pyeong, the current value is estimated at around 11 billion won."
The representative added, "Although there were some opinions that Zico paid a relatively high price compared to the surrounding market at the time of purchase, it appears he approached the investment from a long-term perspective. The fact that there were few comparable sales in the area back then was likely another consideration."
Meanwhile, actor Kim Minjun also made a profitable investment in the same area. In 2015, Kim Minjun purchased a nearby three-story building for 1.32 billion won and sold it in 2019 for 2.04 billion won, earning a capital gain of 720 million won in about four years.
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