"Avoided Actual Residence for 2 Years"… Apgujeong 5 District Also Approved for Union Establishment

Second Union Established in Apgujeong After Zone 4
General Meetings Scheduled for Zones 2 and 3 to Establish Unions
"Regulations Actually Fueled Reconstruction"

Apartment complex view in Apgujeong-dong, Gangnam-gu, Seoul

[Asia Economy Reporter Onyu Lim] Reconstruction complexes in Apgujeong, Gangnam-gu, Seoul, have successively succeeded in establishing associations to avoid the '2-year actual residence' regulation. Among the six maintenance districts, the 5th district (Hanyang 1st and 2nd phases) received approval for reconstruction association establishment second, following the 4th district (Hyundai 8th phase, Hanyang 3rd, 4th, and 6th phases).

According to the maintenance industry on the 23rd, the Apgujeong District Special Plan 5th district received approval for reconstruction association establishment from Gangnam-gu Office the day before. It took 3 years and 5 months since the reconstruction promotion committee was established in August 2017, and two months after applying for association establishment on December 29 last year. The Apgujeong 5th district, consisting of Hanyang 1st and 2nd phases, comprises a total of 15 buildings and 1,232 households. It is scheduled to be reconstructed through project implementation approval and management disposition plans.

The sluggish Apgujeong reconstruction gained momentum due to the strengthened actual residence requirements following the June 17 measures last year. The government plans to amend the 'Act on Maintenance and Improvement of Urban Areas and Dwelling Conditions' to strengthen regulations so that reconstruction complex association members in speculative overheated districts such as Seoul can only qualify for new apartment supply if they have actually resided for two years. However, complexes that completed association establishment applications before the law amendment can avoid this regulation. The bill is still pending in the National Assembly.

Accordingly, six maintenance districts in Apgujeong are promoting association establishment, with the 4th and 5th districts being the first to succeed. Additionally, the Apgujeong 2nd district (Hyundai 9th, 11th, and 12th phases) and 3rd district (Hyundai 1st to 7th, 10th, 13th, and 14th phases, Daerim Villate) are preparing for association establishment. Each district plans to hold association establishment general meetings on the 25th and 28th, respectively.