On August 10th, News1 cited Building Road Real Estate Brokerage Corporation and exclusively reported that G-Dragon’s building in Cheongdam-dong has generated a profit of over 8.4 billion won after seven years.
According to the report, G-Dragon purchased this building, which has one basement and six floors on the ground with a land area of 96 pyeong, in November 2017 at the price of 8.85 billion won (91.97 million won per pyeong). G-Dragon purchased the building under his name, and the maximum bond amount was 3.6 billion won. The loan was 3 billion won, and the remaining 5.85 billion won was paid in cash.
Road Real Estate Brokerage Corporation director Kim Kyung-hyun said, “Including 500 million won in additional costs such as acquisition tax, legal fees and brokerage costs, the purchase cost is estimated to be around 9.36 billion won. The loan-to-value ratio is 33%, which means the proportion of cash is higher (66%)”.
Seven years later, rents have increased significantly and the current rate of return based on the purchase cost is expected to be low in the 5% range. According to a recent estimate of the building’s market price, it has risen by at least 8 billion won. Several nearby buildings have been traded for 1.8 ~ 2.5 billion won per pyeong.
Director Kim explained, “Even if we conservatively estimate the value at 1.8 billion won per pyeong, multiplying that by the land area of G-Dragon’s building of 96 pyeong results in 17.3 billion won in total”, adding “This means the market price of the building is likely to be more than 8.4 billion won after seven years”.
G-Dragon’s building was named “March Rabbit”, inspired by the concept of a rabbit leading others into Wonderland. The building has been featured in foreign media outlets as one of the most beautiful buildings in the world. Located in Cheongdam-dong, on the Dosan-daero side street near Cheongdam Park, the building is a six-minute walk from Cheongdam Station on Line 7. Once Wirye-Sinsa Line opens at Cheongdam Intersection, the area is expected to become a prime location and the building is expected to be only three-minute walk away.
Source: insight
