It almost got him in trouble.
Reported on November 6, KST, BIG BANG‘S Daesung he has increased his net worth by over ₩65.0 billion KRW (about $47.1 million USD) over the past seven years without having to sweat much for it.
In 2017, the idol purchased a 275 pyeong (approximately 910 square meter) building in Gangnam for ₩31.0 billion KRW (approximately $22.5 million USD). Daesung financed ₩14.0 billion KRW (about $10.1 million) via a loan and the remainder in cash for the purchase.
Located in an upscale neighborhood, Daesung Building is located right across from Dosan Park and is within walking distance of major locations such as Apgujeong Rodeo Station and Gangnam District Office Station. The area is a busy shopping space with many luxury brand shops. The building’s use was changed from neighborhood facilities to office facilities during Daesung’s ownership.
According to real estate expert Kim Kyung Hyun of Building Road Real Estate Agency, the Daesung building is located in a major cross-section of a general commercial zone and a residential area, making it suitable for the addition of at least 11 floors. Adjacent lots could also be developed to make it bigger.
Over the past seven years, the price of land in this particular area has skyrocketed. When Daesung purchased the building, it was at ₩113 million KRW (approximately $81,600 USD) per pyeong, while the current asking price is approximately ₩379 million KRW (approximately $275,000 USD) per pyeong. Based on the price of the land alone, the property is estimated to be worth KRW 96.4 billion (about $69.9 million). If Daesung chooses to sell the building, he will get a capital gain of approx [ktw] 65.4 billion [/krw].
If Daesung continues to rent the space instead of selling it, at the current monthly rate level, it can earn an annual return of more than 6%, according to Kim.
Meanwhile, this building was embroiled in controversy in 2019 when it was reported to house an illegal entertainment and prostitution brokerage establishment. The entertainment venue had reportedly been operating secretly since 2005, disguising itself as a signless restaurant and photography studio. At the time, Daesung’s representatives stated that he had purchased the building before his enlistment and was unaware of the fact. He was later cleared of all charges after a police investigation.
You can read more about celebrity real estate stories right here.
BIG BANG
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