Son Ye-jin’s 22.4 Billion KRW Gangnam Building Remains Vacant Due to High Rent
According to a report by News1 on March 9, citing real estate agency Building Road, Son Ye-jin purchased an aging two-story commercial building near Gangnam Station in 2022. She then rebuilt it into a five-story structure in June last year, but it has yet to secure tenants.
In August 2022, Son Ye-jin acquired the property, a 277.7㎡ (approx. 84 pyeong) lot with a two-story building, for 22.4 billion KRW. She immediately began construction on a new building, which now spans a total floor area of 724㎡ (219 pyeong) across one basement level and five above-ground floors.
The report also states that she took out a 15 billion KRW loan, considering the maximum secured bond amount of 18 billion KRW.
Despite its prime location in an area known for heavy foot traffic, the building remains vacant. Industry analysts suggest that the main reason for this prolonged vacancy is the high rental costs, which may be deterring potential tenants. The estimated rent for a second-floor space is 300,000 KRW per 3.3㎡ (pyeong), which translates to approximately 9 million KRW per month for a 30-pyeong unit. Additionally, maintenance fees are reported to be around 1 million KRW per month, further increasing the financial burden for prospective tenants.
As a result, experts believe that it may take some time before suitable businesses commit to leasing space in the building. While the location is undoubtedly desirable, the high costs associated with renting in the newly constructed property may require adjustments or negotiations to attract tenants willing to pay premium prices. Until then, the building continues to stand as an empty yet valuable asset in the heart of Gangnam.
