BIGBANG’s Daesung Earns Over 60 Billion KRW in Passive Income Over 7 Years

Real Estate Success: BIGBANG’s Daesung Anticipates Substantial Capital Gains

According to a recent report by News1, Daesung, a member of the renowned K-pop group BIGBANG, is poised to achieve impressive financial gains from his real estate investment in Gangnam, Seoul. After seven years of ownership, the expected capital gain for his property could exceed 65 billion KRW.

Acquisition Details

In November 2017, Daesung invested 310 billion KRW in a sizeable building spanning 275 pyeong (approximately 910 square meters) situated on Dosan-daero in Nonhyeon-dong. At the time of purchase, the per-pyeong land price hovered around 11.258 million KRW. The financing split included 140 billion KRW sourced via a loan, complemented by 170 billion KRW in cash payments.

Prime Location and Commercial Potential

This property benefits from a strategic location across from Dosan Park, affording it strong visibility and accessibility. It is conveniently within a 8-10 minute walk from both Apgujeong Rodeo Station and Gangnam District Office Station. Nestled in a vibrant commercial hub populated with numerous retail brands, the building holds substantial commercial value.

Investment Strategy and Property Management

Since acquiring the building, Daesung has focused on maintaining its condition rather than undertaking extensive renovations. The exterior has been refreshed with a modern dark gray paint, while the building’s designation was updated from neighborhood to office facilities in accordance with tenant needs. This strategic focus indicates Daesung’s commitment to long-term investment growth.

Expert Insights on Future Developments

Real estate expert Kim Kyung-hyun from the Building Road Real Estate Agency shared insights regarding the property’s potential. He noted that the building is situated within both a general commercial and a 3rd type general residential zone, making it possible to add at least 11 floors. Moreover, if two adjacent parcels are developed in conjunction, there may be opportunities for a larger reconstruction project.

Current Market Evaluation

As of 2022, the average per-pyeong rate for properties in the surrounding area was approximately 32.4 million KRW. Presently, the asking price has escalated to around 37.9 million KRW per pyeong, leading to an updated valuation of Daesung’s building at approximately 964 billion KRW. Should this upward trend persist, Daesung is projected to realize around 654 billion KRW in capital gains.

Projected Returns on Investment

According to Kim, Daesung’s investment has the potential to generate a capital gain of about 654 billion KRW over the seven-year tenure, with current rental income levels indicating an expected annual return exceeding 6%.

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