G-Dragon’s Cheongdam-dong Building Value Doubles After 7 Years

On August 10th, News1 reported exclusively that G-Dragon’s building in Cheongdam-dong, cited by Building Road Real Estate Brokerage Corporation, has yielded a profit of over 8.4 billion won after seven years.

The report states that in November 2017, G-Dragon acquired a building with one basement and six floors on the ground, covering a land area of 96 pyeong, for a total cost of 8.85 billion won (equivalent to 91.97 million won per pyeong). The purchase was made under G-Dragon’s name, with a maximum bond amount of 3.6 billion won. The remaining 5.85 billion won was paid in cash, while a loan of 3 billion won was taken.

According to Kim Kyung-hyun, director of Road Real Estate Brokerage Corporation, the estimated purchase cost for this property is approximately 9.36 billion won, including an additional 500 million won for acquisition tax, legal fees, and brokerage costs. The loan-to-value ratio is 33%, indicating a higher proportion of cash (66%) will be used for the purchase.

Seven years have passed and there has been a significant increase in rents. However, the current rate of return based on the purchase cost is expected to be low, falling in the range of 5%. A recent valuation of the building’s market price shows that it has risen by at least 8 billion won. Additionally, there have been transactions for nearby buildings at a price of 1.8 ~ 2.5 billion won per pyeong.

Director Kim clarified that even with a conservative estimate of 1.8 billion won per pyeong, the total value of G-Dragon’s building, which has a land area of 96 pyeong, would amount to 17.3 billion won. Additionally, he mentioned that the building’s market price is expected to exceed 8.4 billion won after seven years.

The name of G-Dragon’s building, “March Rabbit” , was inspired by the idea of a rabbit guiding others into Wonderland. This building has been recognized by international media as one of the most stunning structures worldwide. Situated in Cheongdam-dong, on the Dosan-daero side street near Cheongdam Park, the building can be reached within six minutes on foot from Cheongdam Station on Line 7. With the upcoming opening of the Wirye-Sinsa Line at Cheongdam Intersection, the area is predicted to become a highly sought-after location, with the building being just a three-minute walk away.

The information was obtained from insight (https://www.insight.co.kr/news/476104).