42-Year-Old 'Siheung Mujigae Reconstruction' Project Implementation Approval Imminent

Public Inspection Notice Until the 13th
Project Implementation Approval Possibly in May
Reconstruction in Geumcheon-gu Area After About 10 Years

[Asia Economy Reporter Onyu Lim] The reconstruction project approval for Mujigae Apartment in Siheung-dong, Geumcheon-gu, Seoul, which was built over 40 years ago, is imminent. This is the first reconstruction project in about 10 years in the Geumcheon-gu area.

According to Geumcheon-gu Office and the maintenance industry on the 13th, the housing reconstruction maintenance project around Mujigae Apartment is expected to receive project implementation plan approval as early as this month. Currently, the district office is conducting a public inspection notice for residents until the 13th ahead of the approval. A district office official said, "We are consulting with related departments for the project implementation plan approval," adding, "However, since many union members' opinions have been received during the public inspection period, the consultation process may take some time."

Mujigae Apartment is a mid-rise complex consisting of five 10-story buildings with 639 households, built in 1980. It is the second oldest complex in Geumcheon-gu after Siheung Apartment in Siheung-dong, built in 1975 with 79 households. It is located right in front of Geumcheon-gu Office Station on Seoul Metropolitan Subway Line 1. Due to rapid aging, it received a conditional reconstruction D grade in a detailed safety inspection in 2015.

The reconstruction project also includes Mujigae row houses and commercial buildings, so the number of landowners and others is 739, more than the existing apartment residents. The union plans to build 993 new apartments (128 rental units) through reconstruction. All will be small to medium-sized units under 85㎡ in exclusive area.

New apartments are rare in the Geumcheon-gu area. The newly occupied Lotte Castle near Doksan Station and Geumcheon Lotte Castle Gold Park built on the former Army crossing unit site are among the new apartments. Since the completion of SM Elui (formerly Geumgang Row Houses, 82 households) in 2012, there has been no reconstruction project approved. Currently, Lucky Apartment and Hyundai Apartment in Siheung-dong are pursuing reconstruction.

Supply is scarce, but with the groundbreaking of the Sinansan Line scheduled to open in 2024, the development of the Geumcheon-gu Office complex station, and the establishment of a general hospital underway, housing prices in this area are rising sharply. The 84㎡ unit of Mujigae Apartment, which was traded at 590 million KRW in November 2019, has surged to 1 billion KRW due to development expectations. In the case of the nearby Lotte Castle Gold Park Phase 3 84㎡, the actual transaction price rose from 1.199 billion KRW in September last year to 1.365 billion KRW in March this year.