Olympic Athlete Village Phase 1 Passes Detailed Safety Inspection, Hanyang Phase 3 Union Establishment, etc.
Speed Race to Avoid 2-Year Residency Requirement... House Prices Soar Sharply Due to Oh Se-hoon Effect

[Asia Economy Reporter Onyu Lim] The Garak Miryung Apartment in Garak-dong, Songpa-gu, Seoul, which was completed 36 years ago, has received approval for the establishment of a reconstruction association. Following the recent passing of the first detailed safety inspection for the Olympic Athletes' Village in Bangi-dong and the approval for the establishment of the association for Hanyang 3rd in Bangi-dong, momentum is building for mid-rise reconstruction projects across Songpa-gu. Since the inauguration of Seoul Mayor Oh Se-hoon, prices have also shown strength amid expectations of deregulation.

According to the maintenance industry on the 16th, the Songpa District Office approved the establishment of the reconstruction association for Garak Miryung Apartment on the 14th. This comes about three years after passing the detailed safety inspection in March 2018. This apartment complex is a mid-rise complex with 15 floors and 435 households, completed in 1986. The association plans to rebuild it into a new apartment with 21 floors and 612 households through reconstruction.

Recently, mid-rise reconstruction complexes in the Songpa-gu area have been accelerating their reconstruction projects. Last month, the Olympic Athletes' Village, a large complex with 5,540 households, conditionally passed the first detailed safety inspection with a D grade after a reattempt. This complex is currently preparing for the second detailed safety inspection by public institutions. Hanyang 3rd in Bangi-dong also received approval for the establishment of its association last month. This complex, completed in 1985, consists of 14 floors and 252 households. Jamsilwoosung 1~3rd in Jamsil-dong, built in 1981, also held its inaugural general meeting for the establishment of a reconstruction association last month. The plan is to demolish the existing 1,842 households and rebuild 2,716 households.

A major factor behind the acceleration of reconstruction efforts is the '2-year actual residence regulation.' Earlier, the government announced through the June 17 measures last year that in speculative overheated districts, reconstruction apartment association members must reside for two years to receive the right to move into the new apartment. However, complexes 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 regulation are exempt from this rule.

Expectations for reconstruction have also driven a sharp rise in housing prices in the Songpa-gu area. According to the Korea Real Estate Board, the apartment sales price increase rate in Songpa-gu in the second week of April was 0.12%, the second highest in Seoul after Nowon-gu (0.17%). A representative from the Real Estate Board explained, "While Seoul housing prices are showing a wait-and-see trend, apartment prices in areas expecting deregulation are rising recently," adding, "In the case of Songpa-gu, the increase has expanded mainly around reconstruction complexes in Jamsil and Garak-dong."