[Exclusive] Hannam 2 District Passes Building Review... Second After Hannam 3 District

[Asia Economy Reporter Donghyun Choi] The redevelopment project of Hannam 2 District in Yongsan-gu, Seoul, has passed the architectural review, a critical milestone in the project, after a second attempt. It is the second project in the Hannam New Town redevelopment sites to pass the architectural review, following Hannam 3 District.

According to industry sources on the 12th, the Seoul Metropolitan Government held an architectural committee meeting the previous day and approved the architectural review for the "Hannam 2 Redevelopment Promotion Zone Housing Redevelopment Project." The architectural review is a procedure conducted before permits are granted when constructing buildings above a certain scale, assessing urban aesthetics and public interest. The industry regards the architectural review as the most challenging step before the project implementation approval. Although Hannam 2 District failed to pass the architectural review last month, it succeeded on the second attempt this time. A union official said, "We were worried since Hannam 3 District passed the architectural review only after seven attempts, but we are glad it passed quickly," adding, "We will expedite the project implementation approval application process."

Hannam 2 District is a redevelopment site covering 82,821㎡ around 272-3 Bogwang-dong. The plan includes 1,537 apartment units with a total floor area of 336,940㎡ and ancillary welfare facilities. The building coverage ratio is 32.92%, and the floor area ratio is 195.96%. The project pace is the second fastest in Hannam New Town, following Hannam 3 District. Recently, Hannam 3 District has been rapidly advancing the project by selecting Hyundai Construction as the contractor, which has encouraged Hannam 2 District to accelerate its efforts.

Another reason the Hannam 2 District union is rushing the project is to avoid the upcoming rule, effective in September, that mandates a maximum 30% quota for rental housing in redevelopment projects. To avoid this rule, included in the amendment to the Enforcement Decree of the Act on Maintenance and Improvement of Urban Areas and Dwelling Conditions passed at the Cabinet meeting in June, the project must receive implementation approval or submit an application by the end of this month. However, Hannam 2 District still has education and environmental impact assessments pending, making it unlikely to submit the implementation approval application within this month. Furthermore, since the government and Seoul City are maintaining policies to expand housing supply by relaxing floor area ratios and maximizing rental units, it is also possible that the number of rental units will increase further during the project implementation approval process.