Remodeled Aging Mid-Rise Complex 59㎡ Also Exceeds 1 Billion Won

Reconstruction Regulation Windfall
Geumho Byeoksan 59㎡ at 1.03 Billion Won
Dongbu Ichon-dong 59㎡ Exceeds 1.5 Billion Won

[Asia Economy Reporter Choi Dong-hyun] As a ripple effect from the government's strengthened reconstruction regulations, aging mid-rise complexes in Seoul undergoing remodeling are enjoying a positive impact. Due to expectations for project progress, small-sized apartment transaction prices are increasingly surpassing 1 billion KRW.

According to the Seoul Real Estate Information Plaza on the 3rd, the 59㎡ (exclusive area) unit of Byeoksan Apartment in Geumho-dong, Seongdong-gu, with 1,707 households, was sold for 1.03 billion KRW on the 4th of last month, exceeding 1 billion KRW for the first time. Until June, this apartment was traded in the high 700 million to low 800 million KRW range. This complex held a general meeting to establish a remodeling association in October, and it is reported that major construction companies such as GS Construction, Hyundai Construction, and POSCO Construction are showing interest in the construction.

The 59㎡ unit of Mapo Taeyoung in Daehyeong-dong, Mapo-gu, with 1,992 households, also set a record high for this area size by being sold for 1.13 billion KRW on the 17th of last month. This apartment had already surpassed 1 billion KRW for small-sized units in September. Residents plan to remodel this apartment into a 2,200-household complex and are currently undergoing consent procedures to establish an association. They also plan to hold a remodeling project briefing session soon.

In Sadang-dong, Dongjak-gu, where integrated remodeling is being promoted by combining several complexes under the name 'Ugeuksin (Useong 2nd & 3rd, Geukdong, Sindonga 4th)', housing prices are also showing strength. The brokerage industry explains that the fact that these three complexes combined form a mammoth remodeling project with 4,400 households is attracting buyers' interest. The 59㎡ unit of Useong 3rd was sold for 960 million KRW in October, and the 59㎡ unit of Geukdong was traded for 938 million KRW the same month, with prices approaching 1 billion KRW. Sindonga 4th’s 59㎡ unit reached 950 million KRW last month. Useong 2nd’s 59㎡ unit had already exceeded 1 billion KRW in September. This complex is scheduled to be remodeled into a 5,000-household complex through vertical extension, and as of the end of last month, the consent rate for establishing the association reportedly exceeded 33%.

In Dongbuichon-dong, Yongsan-gu, where a 4,000-household integrated remodeling project was attempted but failed in 2018 and now some integrated and individual projects are underway, prices continue to rise, with 59㎡ units surpassing 1.5 billion KRW. Hangaram, the largest complex along the Yongsan Family Park line with 2,036 households, exceeded 1.5 billion KRW for the first time in August. Following remodeling project briefings and growing expectations, prices rose to 1.59 billion KRW last month. Additionally, similar-sized units in Ichon Kolon and Hangang Daewoo complexes are currently priced around 1.5 billion KRW.