On September 13th, Building Road Real Estate Brokerage reported that South Korean actor Park Seo-joon purchased a building in Sinsa-dong, Gangnam-gu, Seoul in March 2020 for 96.42 million won per 3.3㎡, totaling 10.9 billion won.
This building, constructed in 1986, features five above-ground floors and one basement floor, covering a land area of 113 pyeong and a total floor area of 328 pyeong.
Strategically located between Eonju-ro and Apgujeong-ro, the property is just a five-minute walk from Apgujeong Rodeo Station on the Suin-Bundang Line.
Park Seo-joon acquired the building near Dosan Park and Apgujeong Rodeo Street solely under his name.
After the purchase, he had the tenants vacate the premises and undertook a comprehensive renovation to enhance the building’s value.
Post-renovation, it’s noted that Park Seo-joon rented the 3rd to 5th floors at reasonable rates to personal staff, including those for hair and makeup.
It’s estimated that approximately 60% of the 10.9 billion won purchase price was financed via loans. When factoring in additional expenses such as acquisition tax, brokerage fees, and legal fees, the total cash expenditure on the purchase is around 4.86 billion won.
According to Kim Kyung-hyun from Building Road Real Estate Brokerage, Park Seo-joon acquired the property at a competitive price, especially with the building facing a 12-meter road.
Kim added that the renovation costs were about 5 million won per pyeong. Thus, with a 328 pyeong floor area, and including the initial purchase price and additional costs, the total expenditure after renovations is estimated at 13.2 billion won.
This year, there have been over 14 transactions involving nearby properties, listed between 179 million won and 300 million won per pyeong.
Kim further explained that since the building is in near-new condition, utilising a conservative market rate of 200 million won per pyeong, Park Seo-joon’s building—given its land area of 113 pyeong—could be valued at approximately 22.6 billion won, resulting in a profit of 9.4 billion won over four years.
Furthermore, he noted that this area has recently experienced active transactions, and if Park Seo-joon’s building were to be listed, it could easily fetch over 220 million won per pyeong.
Source: Nate
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