BIGBANG member Daesung’s building in Gangnam is expected to yield more than 65 billion KRW in capital gains after 7 years, according to a report by News1 on the 6th.
Daesung purchased a 275-pyeong (approx. 910 square meters) building located on Dosan-daero in Nonhyeon-dong, Gangnam, for 310 billion KRW in November 2017. At the time, the land price per pyeong was about 11.258 million KRW, with Daesung financing 140 billion KRW through a loan and the remaining 170 billion KRW in cash.
The building is situated across from Dosan Park, offering excellent visibility. It is also conveniently located within an 8-10 minute walk from Apgujeong Rodeo Station and Gangnam District Office Station. Located in a busy commercial area with many brand stores around, it holds significant commercial value.
Since purchasing the building, Daesung has maintained it without any major expansions, repainting the exterior in a dark gray color for a clean and modern look. The building’s usage was changed from neighborhood facilities to office facilities in line with tenant business changes, and its exterior was preserved, suggesting that Daesung is focused on long-term investment value.
Real estate expert Kim Kyung-hyun from Building Road Real Estate Agency told News1, “Daesung’s building is located in both a general commercial zone and a 3rd type general residential zone, so a minimum of 11 floors can be added. Additionally, if the two parcels behind the building are developed together, it could be reconstructed into a larger building.”
Considering that the per-pyeong price of nearby buildings in the area was about 32.4 million KRW in 2022, and the current asking price is around 37.9 million KRW per pyeong, Daesung’s building is now estimated to be worth around 964 billion KRW. If this trend continues, Daesung is expected to gain about 654 billion KRW in capital gains.
Kim added, “Daesung has made a capital gain of about 654 billion KRW in 7 years compared to the purchase price, and with the current rental income levels, an annual return of over 6% can be expected.”
