Old Downtown Reconstruction and Redevelopment into New Residential Towns... Notable Complexes to Watch in Q4

Over 25,000 Redevelopment and Reconstruction Units for General Sale in Q4
Large Complex Sales Scheduled in Seoul, Incheon, and Gumi, Gyeongbuk

[Asia Economy Reporter Kim Yuri] As old downtown areas are reborn as emerging residential towns through large-scale redevelopment and reconstruction, they are attracting the attention of demanders. Many old downtown areas within the region have well-established living infrastructure such as transportation and education. In addition, with large-scale maintenance projects underway, infrastructure such as roads is being improved, which is expected to enhance the residential environment.

The area around Cheongnyangni Station, a representative old downtown in Seoul, began redevelopment with Cheongnyangni 3 District (Cheongnyangni Station Harrington Place) in April last year, followed sequentially by the Dongbu Agricultural Market site (Cheongnyangni Station Hanyang Susajin 192), Cheongnyangni 4 District (Cheongnyangni Station Lotte Castle SKY-L65), and others. Starting from this, about 10 maintenance projects are being promoted in the areas of Cheongnyangni, Jegi-dong, Yongdu-dong, and Jeonnong-dong, including Cheongnyangni 6, 7, and 8 Districts and Jegi 1, 4, and 6 Districts.

The Cheongnyangni Station area is transforming into a new residential town with about 8,000 households, and transportation and living infrastructure are also being expanded. Cheongnyangni Station, where six lines including Line 1, Bundang Line, Gyeongui-Jungang Line, and Gyeongchun Line intersect, is expected to have four more lines in the future, including the metropolitan area high-speed railroad (GTX)-B and C lines. The area around Cheongnyangni General Market is being developed into a complex cultural space utilizing hanok (traditional Korean houses), and the Hongneung area including Cheongnyangni-dong and Hoegi-dong is being reborn as a bio-industrial complex.

The area around Nokbeon-dong in Eunpyeong-gu, Seoul, is in a similar situation. Starting with the move-in of Nokbeon 1-3 District (Bukhansan Prugio) in 2015, Nokbeon 1-2 District (Raemian Vera Hills), 1-1 District (Hillstate Nokbeon), and others have been built sequentially, bringing significant changes to an area previously dominated by old villas and detached houses. According to the Ministry of Land, Infrastructure and Transport’s actual transaction prices, an 84㎡ (exclusive area) unit in Hillstate Nokbeon was traded for 1.25 billion KRW in August. The highest sale price for this apartment’s 84㎡ unit at the time of pre-sale was 713.7 million KRW.

More than 50,000 housing units from urban maintenance projects are planned for sale in the fourth quarter of this year. According to the maintenance industry, the scheduled supply from redevelopment and reconstruction projects during this period is 52,169 units across 30 sites. Of these, 25,301 units are for general sale. Looking at the nationwide general sale volume in the fourth quarter, there are 87,538 units, with redevelopment and reconstruction accounting for about 28.9% of the total. By region, the metropolitan area accounts for more than half with 14,258 units, and Incheon recorded the highest number with 7,167 units.

In Incheon, new sales are planned in Bupyeong, a representative area undergoing a dramatic transformation. Daelim Industrial will launch 'e-Pyeonhansesang Bupyeong Grand Hills' in Cheongcheon-dong 36-3, Bupyeong-gu, Incheon, in November. The complex consists of 31 buildings from three basement floors to 43 floors above ground, totaling 5,050 households. Among these, 2,894 units sized 37 to 84㎡ will be available for general sale. The Cheongcheon-dong and Sangok-dong areas of Bupyeong-gu, where the complex is located, are undergoing redevelopment and other maintenance projects centered around Sangok Station on the Seoul Subway Line 7 extension, which is scheduled to open. Upon completion, a large-scale new apartment complex of about 15,000 households will be formed, expected to become a new residential town in Incheon.

In Seoul, Samsung C&T plans to launch 'Raemian One Bailey,' an integrated reconstruction of Sinbanpo 3rd and Gyeongnam Apartments in Banpo-dong, in October. Located in Banpo-dong 2-1, Seocho-gu, Seoul, the complex will consist of 23 buildings from four basement floors to 35 floors above ground, with a total of 2,990 households sized between 46 and 234㎡, of which 224 units will be for general sale. The complex is located on the southern end of Banpo Bridge along the Han River and will form a Raemian line of about 5,400 households along Banpo-daero together with Raemian Prestige, which was reconstructed from Banpo Jugong 2nd Complex.

In Gyeonggi Province, Daewoo E&C plans to launch 'Uijeongbu Station Prugio The Central' in October through the Uijeongbu-dong Central 3 District housing redevelopment project. The complex will consist of nine buildings from three basement floors to 35 floors above ground, totaling 926 households sized 49 to 84㎡, with 207 units for general sale. Nearby are Uijeongbu Station and Hoeryong Station on Line 1, and Balgok Station on the Uijeongbu Light Rail Transit, making urban rail transit convenient. The GTX-C line, which has passed the preliminary feasibility study, is planned to open at Uijeongbu Station.

HDC Hyundai Development Company and POSCO Engineering & Construction will also introduce 'Gumi I-Park The Sharp' in October through the Wonpyeong 1 District housing redevelopment project in Wonpyeong-dong, Gumi-si, Gyeongbuk Province. The complex will be composed of 12 buildings up to 42 floors above ground, totaling 1,610 households sized 39 to 101㎡, of which 1,314 units will be offered for general sale. Nearby is Gumi Station on the Gyeongbu Line, and the adjacent Gumi IC on the Gyeongbu Expressway, Gimcheon JC on the Jungbu Naeryuk Expressway, and National Road 33 provide access to Daegu, Busan, Daejeon, and Cheonan.