Redevelopment and Reconstruction Complexes See First-Priority Subscription Closing Rate Rise for 5 Consecutive Years

Convenient Transportation, School Districts, and Living Amenities Already Established, Interest Rising
From 78.3% in 2015 to 91.1% This Year... Steadily Increasing Every Year

Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Yuri Kim] Interest is growing in complexes offered through redevelopment and reconstruction projects. These projects are attracting attention because they allow residents to enjoy fully established infrastructure, including transportation, school districts, and convenient living facilities. Additionally, the participation of major construction companies makes these complexes popular among buyers who prefer well-known brands.

According to the Korea Real Estate Board's subscription website on the 18th, a total of 372 redevelopment and reconstruction complexes were sold nationwide over the past five years from January 2015 to September 2020. Among them, 316 complexes were fully subscribed in the first priority round, recording an 85% subscription rate.

By year, 29 out of 37 complexes in 2015 were fully subscribed, showing a 78.3% subscription rate; in 2016, 50 out of 63 complexes were subscribed (79.3%); in 2017, 44 out of 53 (83.0%); in 2018, 66 out of 76 (86.8%); and in 2019, 86 out of 98 (87.7%). This year, from January to September, a total of 45 redevelopment and reconstruction complexes were sold, with 41 fully subscribed in the first priority round, reaching a rate of 91.1%.

In major areas, resale rights for redevelopment and reconstruction complexes are also commanding high premiums. According to the Ministry of Land, Infrastructure and Transport's actual transaction price system, the 'Hillstate Prugio Suwon' in Gyodong, Paldal-gu, Suwon-si, Gyeonggi Province, which was sold in December last year, had a sale price of 595 million KRW for an 84.91㎡ (exclusive area) unit. However, it was traded for 868.07 million KRW in August this year, rising by 270 million KRW in just eight months. The 'Raemian Urban Vista' in Songnae-dong, Bucheon-si, Gyeonggi Province, supplied in December 2018, had a sale price of 538 million KRW for an 84.92㎡ unit. Yet, the resale right was traded for 728 million KRW last August, increasing by 190 million KRW.

Amid this atmosphere, attention is also focused on redevelopment and reconstruction complexes scheduled for sale this fall. There are many units in the metropolitan area, including Gyeonggi and Incheon, and some sales are planned in other regions.

Lotte Construction will sell 'Daegok Station Lotte Castle El Classy,' a reconstruction complex in Neunggok 2 District, Deogyang-gu, Goyang-si, Gyeonggi Province, this month. The complex consists of 12 buildings, ranging from 59 to 84㎡, with 834 households in total, of which 254 are for general sale. The complex is located near Daegok Station, a transfer station for Subway Line 3 and the Gyeongui-Jungang Line, and Neunggok Station on the Gyeongui-Jungang Line. The metropolitan area express railway (GTX)-A and Seohae Line (Daegok~Sosa), scheduled to open by the end of 2023, are also planned.

HDC Hyundai Development Company and POSCO Construction plan to supply 'Gumi I-Park The Sharp,' a redevelopment complex in Wonpyeong 1 District, Gumi-si, Gyeongbuk Province, this month. The complex consists of 12 buildings with a maximum height of 42 floors, ranging from 39 to 101㎡, with a total of 1,610 households, of which 1,314 are for general sale. It is the tallest complex in Gumi and includes a large park about twice the size of a soccer field (approximately 16,000㎡). Gumi Elementary School is located right next to the complex, and it is convenient to access the Gumi National Industrial Complex, home to Samsung Electronics and LG Electronics.

Daewoo Engineering & Construction plans to sell 'Uijeongbu Station Prugio The Central' through the Uijeongbu Central Living Zone 3 District housing redevelopment project in Uijeongbu-si, Gyeonggi Province, this month. The complex consists of 9 buildings, ranging from 49 to 84㎡, with a total of 926 households, of which 207 are for general sale. Nearby are Uijeongbu Station on Subway Line 1, Hoeryong Station on Line 1 and Uijeongbu Light Rail, and Balgok Station on the Uijeongbu Light Rail. Cheongryong Elementary School, Gyeongui Elementary School, and Lotte Mart are also close by.

Daelim Industrial plans to supply 'e-Pyeonhansesang Bupyeong Grand Hills,' a redevelopment complex in Cheongcheon 2 District, Bupyeong-gu, Incheon, next month. The complex consists of 31 buildings, ranging from 37 to 84㎡, with a total of 5,050 households, of which about 2,900 are for general sale. The complex is adjacent to Cheongcheon Elementary and Middle Schools, E-Mart, Lotte Mart, Lotte Cinema, and Nabi Park. The San-gok Station, part of the Seoul Metropolitan Subway Line 7 extension project, is also planned nearby.