MC Mong Sells Gangnam Building to Noh Hong Chul

MC Mong's company, The Mu Co., Ltd., sold a building in Sinsa-dong, Gangnam-gu, Seoul, to broadcaster Noh Hong-chul. The building is one basement level and five above-ground floors, with a land area of 253.95㎡ and a total floor area of 593.17㎡. The Mu purchased this building last November from broadcaster Kang Ho-dong for 16.6 billion won, but sold it to Noh Hong-chul for 15.2 billion won after a year and a half, incurring a loss of approximately 1.4 billion won. Considering acquisition tax, registration tax, and financing costs, the actual loss is estimated to be over 2 billion won.

The new owner of the building is broadcaster Noh Hong-chul, who signed the purchase agreement early this month and recently completed the ownership transfer registration. Noh Hong-chul appears to have financed most of the purchase with loans, as a mortgage with a maximum claim amount of 18 billion won has been established on the property. This suggests the actual loan amount is around 14 to 15 billion won. To facilitate the building purchase, Noh Hong-chul provided his own building, acquired in 2018 for approximately 12.2 billion won, as joint collateral.

The previous owner, Kang Ho-dong, purchased the building in 2018 for 14.1 billion won and sold it to MC Mong's side for 16.6 billion won six years later, realizing a capital gain of about 2.5 billion won.

This transaction is interpreted as a case demonstrating the continued chill in the Garosu-gil building market. Local real estate agents report a lack of building purchase inquiries, and according to the Seoul Commercial Area Analysis Service, Sinsa-dong saw more business closures than openings last year. Furthermore, the vacancy rate for medium-to-large commercial spaces near Sinsa Station has risen to 15.6%, and the vacancy rate in the Garosu-gil commercial area exceeds 40%. Consequently, the monthly rental income per 3.3㎡ has also fallen by 13.1% compared to a year ago.