Gangnam-gu to Outsource Complex Facility Development Early Next Year
Used as Public Parking Lot for Decades
Adjacent Apartment Land Price Exceeds 200 Million KRW per 3.3㎡
Controversy Over Excessive Welfare Facility Expansion in Prime Wealthy Area
In Apgujeong-dong, Gangnam-gu, where redevelopment projects are gaining momentum, a prime piece of land valued at nearly 1 trillion won has remained underutilized for decades. This land is the Apgujeong 428 Public Parking Lot, located between Apgujeong District 2, which includes the Shinhyundai 9, 11, and 12 apartment complexes (1,924 households), and the Hyundai Department Store Apgujeong Main Branch. It is named after its address, 428 Apgujeong-dong.
According to Gangnam-gu on the 29th, the district is currently reviewing plans to develop this land, which is now used as a public parking lot, into a cultural complex facility by commissioning an external parking lot development plan early next year. A detailed development blueprint will be available after the results of the study come out in the second half of next year.
A Gangnam-gu official stated, “There have been ongoing criticisms that the land use efficiency of this site, currently used as a public parking lot, is low. Although a study was conducted in 2021, we plan to commission an additional parking lot development plan soon to explore mixed-use development options including cultural and assembly facilities.”
While the land value of this site is high, its usability is significantly limited. The parking fee at this public parking lot, operated by the Gangnam-gu Urban Management Corporation, is 400 won per 5 minutes, and the monthly subscription fee is 150,000 won. Although it is classified as a prime public roadside parking lot with relatively high fees, unlike other public off-street parking lots that operate 24 hours, this lot operates only 12 hours a day (9 a.m. to 9 p.m.).
Among the 54 public parking lots established by Gangnam-gu Office, this is the largest, accommodating 344 vehicles simultaneously. However, a significant portion of users are customers of the adjacent Hyundai Department Store and shuttle buses serving the department store. Considering operating hours, parking fees, and various discounts, industry insiders estimate the annual revenue to be around 1 to 2 billion won.
The left side of Apgujeong Station on Subway Line 3 and Hyundai Department Store is Apgujeong 428 Public Parking Lot. (Source: Naver Satellite Image)
Meanwhile, the nearby land prices are in the trillion-won range. The site area of Apgujeong 428 Public Parking Lot is 13,968 square meters (4,225 pyeong), larger than the adjacent Hyundai Department Store Apgujeong Main Branch, which is 10,330 square meters. However, since the land is designated as school land, the official land price is 34.81 million won per 3.3 square meters (pyeong), which is relatively low. The official land price of the adjacent Hyundai Apartments, designated as residential land, is 67.37 million won, but recent actual transaction prices have exceeded 200 million won per 3.3 square meters.
Considering that the adjacent department store’s annual sales reach 1.2 trillion won, some argue that continuing to keep one of Seoul’s most prime lands as a parking lot represents a significant opportunity cost economically. However, if a mixed-use facility exclusively for local residents is built in Apgujeong-dong, which is expected to become the country’s top affluent area with 50 to 70-story redevelopment projects in the future, there could be controversies over excessive expansion of welfare facilities.
Meanwhile, Apgujeong 428 Public Parking Lot originated as residual land from the Yeongdong land readjustment project conducted by Seoul City in the 1970s. It was reserved as school land during the Yeongdong development, but when there was no longer a need to build a school here, it was used as a parking lot. Development plans have repeatedly failed over time. The ownership of this land, previously held by Seoul City, was transferred to Gangnam-gu during the period when former President Lee Myung-bak served as Seoul mayor.
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