Why is Son Ye Jin’s luxury 22.4 billion KRW Gangnam building struggling to find tenants? Here’s the shocking reason

High actress Son Ye Jin’s multi-million-buck proper property funding in one of Seoul’s most sought-after business districts has but to repay, because the constructing she developed remains with out tenants despite its prime put and in style products and services.

Fixed with a March 9 legend from News1, Son Ye Jin purchased an frail two-story business constructing discontinuance to Gangnam Space in 2022 for 22.4 billion KRW (approximately 15.5 million USD). She then invested heavily in rebuilding and lengthening the enchancment, transforming it into a five-story business property with a basement stage, covering a total space of 724 sq. meters. The redevelopment was completed in June 2023, positioning the constructing as a top class apartment space in one of Seoul’s busiest and most neat trade districts.

On the opposite hand, despite its prime put and excessive foot web page visitors, the constructing has remained unoccupied, raising concerns about the funding’s profitability. The major field, as trade experts suggest, is the steep apartment prices. Leasing a 30-pyeong (approximately ninety 9 sq. meters) unit in the constructing reportedly prices as a minimum 9.00 million KRW (around 6,220 USD) monthly, to boot to to a maintenance payment of roughly 1.00 million KRW (around 691 USD). Whereas Gangnam is a prestigious trade hub, attainable tenants can even be hesitant to commit to such excessive apartment prices, particularly with different business areas available at competitive prices.

Adding to the financial strain, experiences recount that Son Ye Jin took out a 15.0 billion KRW (about 10.4 million USD) loan to finance the internet and redevelopment of the property. And not utilizing a tenants secured, the delay in apartment profits can even manufacture it more no longer easy to recoup her funding and organize the financial responsibilities tied to the loan.

The struggles Son Ye Jin is facing alongside with her property highlight a broader style in Seoul’s proper property market, particularly in excessive-slay business leases. Whereas Gangnam remains a hotspot for companies, shopper habits and leasing tendencies were curious. Many companies and entrepreneurs are truly making an strive for more flexible leasing choices or curious to emerging business areas the put apartment prices are decrease but foot web page visitors remains sincere.

Fixed with proper property analysts, except the actress or her management crew adjusts the apartment pricing or provides more incentives to intention companies, the constructing can even continue to take a seat down down vacant for an extended interval. Some experts suggest that introducing short leasing choices, lowering hire for early tenants, or offering promotional incentives can even abet sincere occupants and manufacture the property financially sustainable in some unspecified time in the future.

No matter these challenges, Son Ye Jin’s funding remains a treasured asset attributable to its prestigious put in Gangnam, an space identified for its business allure, upscale companies, and luxury plot of life. Whereas it can well also grab time to procure the stunning tenants piquant to fulfill the head class mark, the lengthy-term attainable of the property remains sincere. For now, all eyes are on how Son Ye Jin and her management crew will organize the competitive proper property market to recount her excessive-profile funding into a a success enterprise.