As Property Prices Soar at 'ePyeonhansesang Seoul National University Entrance' Redevelopment Completion,
Nearby Redevelopment Projects Including Zone 14 Gain Momentum
Expectations Rise for Improved Transportation with Seobu Line Light Rail 추진
[Asia Economy Reporter Lee Chun-hee] The redevelopment of the Bongcheon-dong area in Gwanak-gu, Seoul, which had been stagnant for over 10 years, is gaining momentum again. As housing prices in some successfully completed zones have soared, the redevelopment efforts in surrounding areas seem to have gained new energy. Additionally, expectations for improved transportation conditions due to the promotion of the Seobu Line light rail are also contributing to the positive atmosphere.
According to industry sources on the 13th, Bongcheon 14 District in Gwanak-gu received approval for the establishment of a union from the Gwanak-gu Office at the end of last month. Bongcheon 14 District is an old residential area covering 74,209㎡ in the 1st area of Bongcheon-dong, where 17 buildings with 1,395 apartment units (including 280 rental units) are planned through redevelopment. Although the basic maintenance plan was announced in 2008 and the promotion committee was approved in 2009, there was no progress in the project for 10 years. In 2018, Seoul City even applied for the cancellation of the maintenance district by its own authority.
However, in March last year, a resident opinion survey involving 528 of the 651 landowners showed that 393 people (60.4%) supported redevelopment, which revitalized the project. The union is considering increasing the number of units from the current 1,395 to about 1,700 to improve profitability and aims to complete the project implementation approval within three years.
Industry experts evaluate that development benefits such as the Seobu Line and the success of nearby redevelopment zones that completed their projects earlier have influenced this progress.
The Seobu Line light rail, which passes through the Bongcheon-dong area, passed the preliminary feasibility evaluation in June. This line is a 17.95 km light rail connecting Saejeol, Sinchon, Yeouido, Noryangjin, and Seoul National University. Once opened, it will take about 20 minutes from Saejeol Station to Seoul National University Station. Seoul City plans to start construction in 2023 and complete the project by 2028.
Bongcheon-dong, Gwanak-gu, Seoul 'e-Pyeonhansesang Seoul National University Entrance 2nd Phase' (Provided by Daelim Construction)
Bongcheon 12-1 and 12-2 Districts, which started redevelopment earlier than the 14th District, recently completed redevelopment and transformed into the 'e-Pyeonhansesang Seoul National University Entrance 1 & 2' apartment complex with 1,531 units. This complex has shown a steep price increase and has established itself as the 'flagship apartment' in the Gwanak-gu area. In October last year, a first-phase 84㎡ (exclusive area) occupancy right was traded for 1.05 billion KRW, marking the first time a property in Gwanak-gu joined the '1 billion KRW club.' On the 17th of last month, a second-phase occupancy right of the same size was sold for 1.3 billion KRW in an actual transaction.
A representative from nearby A Real Estate Agency said, "Since it is the only large-scale new complex in Gwanak-gu, it is very popular," adding, "Nearby redevelopment districts are accelerating their projects after seeing the success of this complex."
Currently, in the Bongcheon-dong area, besides the 14th District, the 4-1-2, 4-1-3, and 13th Districts are also pushing forward with redevelopment projects. The 4-1-2 District is already undergoing demolition and is expected to have general sales next year. The 4-1-3 District, which succeeded in extending the maintenance district expiration deadline until March 2022, is preparing for project implementation approval, and the 13th District near Bongcheon Station is preparing for union establishment approval.
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