Housing Prices and Redevelopment Gain Momentum... Sunny Prospects for Sanggye New Town

Sanggye 1 District New Town Designation: Project Implementation Approval After 15 Years
Plan to Transform into a Large Complex of 1,388 Households

District 4 Move-in Completed, District 6 Under Construction... Project Nearing Completion
District 4 Sanggye Central Prugio 84㎡ Approaching '1 Billion Won Club'

[Asia Economy Reporter Lee Chun-hee] Recently, fueled by the rising housing prices in the outskirts of Seoul, redevelopment projects in the Sanggye New Town area of Nowon-gu are gaining momentum. While the reconstruction of Jugong Apartments within the housing district of Nowon-gu is becoming active, the addition of redevelopment projects is expected to bring significant changes to the residential landscape in this area.

According to industry sources on the 21st, the Sanggye 1 District Redevelopment Promotion Zone Association received project implementation approval from Nowon-gu Office on the 19th. Accordingly, the Sanggye 1 District, covering 86,433㎡ in the Sanggye-dong area of Nowon-gu, is expected to be transformed into a large complex through redevelopment, consisting of 17 buildings ranging from 5 basement floors to 25 above-ground floors, with 1,388 households (including 290 rental units).

Sanggye 1 District, along with nearby districts 2 to 6, was designated as a New Town in 2005. Since then, it has passed through the establishment of a promotion committee in 2008 and approval for the establishment of the association in 2013, overcoming the hurdle of project approval after 15 years. The association plans to complete the selection of a construction company before the first half of next year and obtain management disposition approval within the year. Several major construction companies, including Hyundai Engineering & Construction, GS Engineering & Construction, Daewoo Engineering & Construction, Lotte Engineering & Construction, and Hyundai Engineering, are reportedly showing interest in this project.

If the Sanggye New Town project, spanning 470,000㎡ near Sanggye Station to Danggogae Station on Seoul Subway Line 4, is successfully completed, it will form a residential belt of about 8,000 households.

Currently, projects in districts 4 and 6 are in their final stages. District 4 completed construction in January this year and transformed into 'Sanggye Station Central Prugio' with 810 households. The 1,163-household District 6 also succeeded in general sales last July under the 'Nowon Lotte Castle Signature' brand.

The prices of the new apartments are also soaring. In August, the 84㎡ (exclusive area) occupancy rights for Sanggye Station Central Prugio were traded at 980 million KRW, nearing entry into the '1 billion KRW club.' The 59㎡ units were traded at 810 million KRW in August. The association plans to auction one reserved 59㎡ unit on the 22nd with a minimum bid price of 850 million KRW.

District 2 (2,200 households) has currently submitted the project implementation plan and is awaiting approval, while District 5 (2,237 households) has completed association establishment approval and is preparing for architectural review.

District 3, which was removed from the redevelopment zone, has recently seen active discussions about participation in public redevelopment. This district, covering 160,000㎡, is the largest in Sanggye New Town but was removed from the redevelopment zone in 2014, causing the redevelopment to stall. However, as the government and Seoul City have included areas removed from redevelopment zones in the public redevelopment targets, momentum for project promotion is regaining strength. On the afternoon of the 21st, a public redevelopment project briefing session jointly hosted by Nowon-gu Office and the Korea Land and Housing Corporation (LH) will also be held.