In 2006, a house was purchased for 1.05 billion won and a small building was built.
Current market price estimated at 8.2 billion… “Strength of location in Cheongdam-dong”
The Cheongdam-dong building owned by singer BoA is expected to make a market profit of 7.1 billion won in about 18 years.
According to Building Road Real Estate Brokerage on the 24th, BoA purchased a house with an area of 59 pyeong near Luxury Street in Cheongdam-dong, Gangnam-gu, Seoul in May 2006 for 1.055 billion won. At the time of purchase, the price per pyeong of land was approximately 17.88 million won.
BoA was 19 years old at the time, and became the owner of a building in Cheongdam-dong before she turned 20. Later, in 2008, he demolished the existing house and built a small building with 1 floor underground and 5 floors above ground, and was named as a building owner at the age of 21.
The building is located behind Luxury Street in Cheongdam-dong, about a 15-minute walk from Apgujeong Rodeo Station on the Suin Bundang Line. Although it does not have a large floating population, it is highly valued for its private environment and high-end residential area.
Currently, this building is comprised of tenants from various high-end industries, and is maintaining its value through Cheongdam-dong’s unique demand and stable profit structure.
The current market price of the building owned by BoA is estimated at approximately 8.2 billion won. This is the result of applying it to a land area of 59 pyeong, based on a case traded nearby for 139 million won per pyeong last July. This is a market profit of approximately 7.1 billion won compared to the purchase price.
Kim Gyeong-hyun, manager of Building Road Real Estate Brokerage, said, “BoA’s building recorded a significant increase in asset value due to its locational advantage in the back of Cheongdam-dong and the characteristics of a newly constructed small building.” “It can be evaluated as a representative example of successful investment,” he said.
Meanwhile, Team Leader Jeon Ye-seong of Building Road Real Estate Brokerage Corporation runs the YouTube channel ‘Little Building Yongsik Ye-seong’, which provides real estate information.
(Seoul = News 1)
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How does celebrity ownership of properties impact their market value in metropolitan areas?
Interview Between Time.news Editor and Real Estate Expert
Time.news Editor (TNE): Welcome, everyone! Today, we have an insightful interview with real estate expert, Kim Gyeong-hyun, who has extensive knowledge about the property market in Gangnam, Seoul. Kim, thank you for joining us.
Kim Gyeong-hyun (KG): Thank you for having me! It’s a pleasure to discuss real estate trends with you.
TNE: Let’s dive right in. We recently published an article about a property owned by singer BoA in Cheongdam-dong that was purchased for 1.05 billion won in 2006 but is now valued at around 8.2 billion won. What factors do you think contributed to such a dramatic increase in value?
KG: The increase is primarily due to the strategic location in Cheongdam-dong, which is known for its luxury shopping and high-end residential environment. When BoA purchased the property, she acquired it in a prime area that has only grown more desirable over the years.
TNE: It’s remarkable that BoA became a property owner at just 19 years old. How do you think her celebrity status influenced the property’s value?
KG: While her celebrity status certainly brings attention to the property, the fundamental value of real estate lies in the location and the property itself. BoA’s building, which she developed into a well-constructed small commercial building, benefits from Cheongdam-dong’s affluent clientele, ensuring high demand from tenants. This combination represents a successful investment.
TNE: You mentioned tenant diversity. What types of businesses are currently occupying her building, and how do they impact the market value?
KG: The building houses tenants from various high-end industries. This tenant mix contributes to the building’s stability and desirability. The demand in Cheongdam-dong creates a robust profit structure, and properties with reputable tenants tend to maintain or even increase their value over time.
TNE: Given the current market price estimation of about 8.2 billion won, how does this reflect the real estate trends in Gangnam overall? Is this kind of profit typical for properties in the area?
KG: This type of profit is not unheard of in Gangnam, especially in burgeoning areas like Cheongdam-dong. The core factors include limited land availability, consistent interest from high-end businesses, and strong investment from both local and foreign investors. Properties in desirable locales, when well-maintained and strategically developed, often see substantial market value increases.
TNE: For someone looking to invest in real estate today, particularly in high-demand areas like Gangnam, what advice would you give?
KG: I would advise potential investors to focus on location, property condition, and the types of tenants that are likely to occupy the space. Thorough research and understanding of the market dynamics are crucial. Engaging with real estate professionals can provide invaluable insights tailored to their investment goals.
TNE: That’s excellent advice, Kim. Before we wrap up, any final thoughts on the impact of celebrity influence in real estate?
KG: While celebrity influence can certainly enhance property visibility and initial interest, ultimately, the property’s intrinsic value is determined by its location and functionality. Celebrity-owned properties may attract curiosity, but smart investors always look beyond the glitz to the underlying fundamentals.
TNE: Fantastic insights, Kim! Thank you for sharing your expertise on this fascinating topic. We look forward to hearing more from you in the future.
KG: Thank you! It was a pleasure to be here.
TNE: And thank you to our audience for tuning in! Stay informed about real estate trends and more on Time.news.