Approval Granted for Apgujeong 2 District Association... Growing Expectations for Reconstruction

Apgujeong Districts 4 and 5 Followed by Third
Largest Scale District 3 Soon to Decide Approval
Speeding Up to Avoid 2-Year Residency Requirement
Housing Prices Surge After Seoul Mayor Oh Se-hoon's Election

Apgujeong Hyundai Apartment. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Onyu Lim] Apgujeong 2 District in Gangnam-gu, Seoul, has succeeded in establishing a reconstruction association following Districts 4 and 5.

According to the maintenance industry on the 13th, Apgujeong 2 District, consisting of Hyundai 9, 11, and 12 complexes, received notification of association establishment approval from Gangnam-gu Office the day before. The district had submitted an application for association establishment on the 10th of last month.

This is the third reconstruction association establishment within the Apgujeong Apartment District (Districts 1 to 6). In February, District 4 (Hyundai 8, Hanyang 3, 4, and 6 complexes) and District 5 (Hanyang 1 and 2 complexes) received association establishment approval. The approval for the largest District 3 (Hyundai 1 to 7, 10, 13, 14 complexes, and Daelim Villart) is expected to be decided as early as this week.

The reason why the maintenance districts around Apgujeong-dong, considered the most expensive apartments in Gangnam-gu, are rushing to obtain association establishment approval is to avoid the two-year mandatory residency requirement. Previously, the government announced through the June 17 measures last year that reconstruction apartment association members in speculative overheated districts must reside for two years to receive new apartment move-in rights. However, districts that applied for association establishment before the passage of the amendment to the 'Act on Maintenance and Improvement of Urban Areas and Dwelling Conditions' containing this provision are exempt from this regulation.

With the acceleration of reconstruction promotion and growing expectations for deregulation following the election of Seoul Mayor Oh Se-hoon, prices in this area are soaring. Two days before the April 7 Seoul mayoral election, a 245㎡ (exclusive area) unit in Hyundai 7 complex was traded at 8 billion KRW, 1.3 billion KRW higher than 6.7 billion KRW six months ago.