According to Building Road Real Estate Brokerage on Sep 13th, Park Seo-joon acquired a building in Sinsa-dong, Gangnam-gu, Seoul in March 2020 at 96.42 million won per 3.3㎡ of land, totaling 10.9 billion won.
The building, completed in 1986, has five floors above ground and one basement floor, with a land area of 113 pyeong and a total floor area of 328 pyeong.
The building is located between Eonju-ro and Apgujeong-ro, a five-minute walk from Apgujeong Rodeo Station on the Suin-Bundang Line.
Park Seo-joon purchased the building near Dosan Park and Apgujeong Rodeo Street solely under his name.
After acquiring the building in 2020, he had all the tenants vacate and carried out a full renovation to increase its value.
After the extensive renovations, it is reported that Park Seo-joon rented out the 3rd to 5th floors at affordable prices to his personal staff, such as those handling hair and makeup.
It is estimated that about 60% of the 10.9 billion won purchase price was financed through a loan. Including additional costs such as acquisition tax, brokerage fees and legal fees, the cash spent on the purchase is estimated to be around 4.86 billion won.
Kim Kyung-hyun, a representative of Building Road Real Estate Brokerage, analyzed, “He seems to have bought the building at a reasonable price, considering the market at the time, with the building facing a 12-meter road.“
Kim also noted, “The renovation cost was about 5 million won per pyeong. When multiplying this by the 328 pyeong floor area and adding the purchase price and additional costs, the total cost after renovation is estimated to be 13.2 billion won.”
There have been over 14 transactions of nearby buildings this year, priced between 179 million won and 300 million won per pyeong.
Kim explained, “Since the building is in nearly new condition, if we calculate at the lower end of the market rate, at 200 million won per pyeong, and multiply that by Park Seo-joon’s building’s land area of 113 pyeong, the building’s value could reach 22.6 billion won, resulting in a profit of 9.4 billion won over four years.”
Additionally, he mentioned, “This area has seen active building transactions recently, with many prospective buyers. If Park Seo-joon’s building were to be listed, it could easily sell for over 220 million won per pyeong.“
Meanwhile, Team Leader Jeon Ye-seong of Building Road Real Estate Brokerage runs the YouTube channel “Little Building Yong-sik Ye-seong” to provide real estate information.
Source: Nate
