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Why is Son Ye Jin’s luxury 22.4 billion KRW Gangnam building struggling to find tenants? Here's the shocking reason
Son Ye Jin’s luxury Gangnam building remains vacant despite its prime location. The five-story property, completed in 2023, has yet to secure tenants, drawing attention to her investment. Read more!
Top actress Son Ye Jin’s multi-million-dollar real estate investment in one of Seoul’s most sought-after commercial districts has yet to pay off, as the building she developed remains without tenants despite its prime location and modern facilities.
According to a March 9 report from News1, Son Ye Jin purchased an old two-story commercial building near Gangnam Station in 2022 for 22.4 billion KRW (approximately 15.5 million USD). She then invested heavily in rebuilding and expanding the structure, transforming it into a five-story commercial property with a basement level, covering a total area of 724 square meters. The redevelopment was completed in June 2023, positioning the building as a premium rental space in one of Seoul’s busiest and most desirable business districts.
However, despite its prime location and high foot traffic, the building has remained unoccupied, raising concerns about the investment’s profitability. The primary challenge, as industry experts suggest, is the steep rental prices. Leasing a 30-pyeong (approximately 99 square meters) unit in the building reportedly costs at least 9.00 million KRW (around 6,220 USD) per month, in addition to a maintenance fee of approximately 1.00 million KRW (around 691 USD). While Gangnam is a prestigious business hub, potential tenants may be hesitant to commit to such high rental costs, especially with alternative commercial spaces available at competitive prices.
Adding to the financial pressure, reports indicate that Son Ye Jin took out a 15.0 billion KRW (about 10.4 million USD) loan to finance the purchase and redevelopment of the property. With no tenants secured, the delay in rental income could make it more challenging to recoup her investment and manage the financial obligations tied to the loan.
The struggles Son Ye Jin is facing with her property highlight a broader trend in Seoul’s real estate market, particularly in high-end commercial rentals. While Gangnam remains a hotspot for businesses, consumer habits and leasing trends have been shifting. Many companies and entrepreneurs are now seeking more flexible leasing options or moving to emerging commercial areas where rental prices are lower but foot traffic remains steady.
According to real estate analysts, unless the actress or her management team adjusts the rental pricing or offers more incentives to attract businesses, the building may continue to sit vacant for an extended period. Some experts suggest that introducing short-term leasing options, reducing rent for early tenants, or offering promotional incentives could help secure occupants and make the property financially sustainable in the long run.
Despite these challenges, Son Ye Jin’s investment remains a valuable asset due to its prestigious location in Gangnam, an area known for its commercial appeal, upscale businesses, and luxury lifestyle. While it may take time to find the right tenants willing to meet the premium price, the long-term potential of the property remains strong. For now, all eyes are on how Son Ye Jin and her management team will manage the competitive real estate market to turn her high-profile investment into a profitable venture.
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