Gwangmyeong City Approves Management Disposition Plan for District 4 on 28th
Gwangmyeong New Town, Major Redevelopment of 25,000 Households
7 out of 11 Project Sites Reach Management Disposition Approval or Higher
Gwangmyeong Eco Xi Move-in Scheduled for November
General Sales Expected Within the Year for Districts 2, 10, and 15
[Asia Economy Reporter Onyu Lim] The New Town redevelopment project in the Gwangmyeong area of Gyeonggi Province, consisting of 25,000 households, is gaining momentum. Following the approval of the management disposition plan for District 5 in October last year, District 4 recently received approval as well, bringing the number of districts with approved plans among the 11 districts where the project is progressing normally to seven, which have passed the critical 90% completion mark. Through large-scale redevelopment, most of the old city areas densely populated with aging houses around Gwangmyeong and Cheolsan-dong are expected to transform into a new town-level residential area.
According to the maintenance industry on the 30th, Gwangmyeong City approved the management disposition plan for the housing redevelopment maintenance project of Gwangmyeong New Town District 4 on the 28th. Accordingly, District 4 in the area of 88-14, Gwangmyeong 2-dong, will have a new apartment complex with up to 40 floors and 1,957 households. District 4 is considered one of the prime locations within Gwangmyeong New Town, as it is right in front of Gwangmyeongsageori Station on Seoul Subway Line 7, offering excellent access to the Gangnam area. Hyundai Development Company is in charge of construction. A representative from real estate agency Y in the area said, "With the approval of the management disposition plan, the premium for an exclusive area of 84㎡ rose from about 340 million KRW at the beginning of this month to about 380 million KRW currently."
Following District 5, which has 3,091 households and received approval last October, District 4 also obtained management disposition approval, signaling that the Gwangmyeong New Town project is entering its completion phase. Excluding the areas that were canceled, seven out of the 11 districts where the project is proceeding normally have received management disposition approval. The management disposition plan finalizes matters related to allocation areas per union member, estimated maintenance project costs, and compensation for tenant losses. This essentially resolves most of the project's uncertainties.
The district at the most advanced stage of the project within Gwangmyeong New Town is District 16, which will have 2,101 households. Construction is underway, and it will welcome residents in November under the brand name "Gwangmyeong Eco Xi Weave." District 15 is expected to have general sales in the first half of the year. Relocation and demolition are also ongoing in several districts. District 14 has completed relocation and is currently undergoing demolition, while Districts 10 and 2 are in the process of relocation, making general sales possible as early as this year. District 1 (3,585 households) has applied for management disposition approval. Additionally, District 11, the largest in the New Town with a total of 4,314 households, has received project implementation approval.
Gwangmyeong New Town has a total project scale of 25,000 households, making it the largest New Town in the Gyeonggi area. It borders Seoul along the Anyangcheon and Mokgamcheon streams and is a strategic location connected to Seoul city center and the Gangnam area within about 30 minutes via KTX Gwangmyeong Station and Seoul Subway Lines 1 and 7. With additional benefits such as the opening of the Sinansan Line and the Wolgot-Pangyo Line, steady investment from both local and external investors has continued. Apartments in the Cheolsan and Haan-dong residential districts have either completed reconstruction or are undergoing project promotion, causing the entire city to be bustling with large-scale maintenance projects.
However, there are concerns about the final hurdles each district must overcome, such as the Housing and Urban Guarantee Corporation (HUG)'s price control and the price ceiling system. Even for District 15, the general sale schedule has been delayed due to significant differences in opinions between the union and HUG regarding the sale price. The union insists that the average price per 3.3㎡ should be at least 20.47 million KRW, citing that the general sale price of Lotte Castle & SK View Class Tige at Cheolsan Station in Cheolsan-dong, sold in September 2018, was an average of 22.6 million KRW per 3.3㎡. On the other hand, HUG is known to base its proposal on District 16, which was sold at an average of 17.55 million KRW per 3.3㎡ in December 2017. Since the general sale price is directly linked to additional contributions from union members, not only the concerned district but the entire New Town is closely watching the outcome of the price calculation.
Jang Jaehyun, head of Real Today, advised, "Gwangmyeong New Town is a valuable area in the long term as it borders Seoul. However, since the initial investment cost has already become very high, the short-term investment value may vary depending on the general sale price."
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