Revitalization of Dongbu Ichon-dong Redevelopment Project... Now the 'New Bucheon'

Starting with Hangang Samik last year
Hangang Mansion also undergoing project approval
Active remodeling
Ichon Kolon recently secured resident consent rate
Hangaram quickly collecting as well

[Asia Economy Reporter Kim Hyemin] Reconstruction and remodeling projects are actively underway in Dongbu Ichon-dong, Yongsan-gu, known as a traditional affluent neighborhood in Seoul. Apartments that have been stalled in maintenance projects for a long time, ranging from over 50 years to more than 20 years old, are simultaneously attempting to transform into new apartments. Dongbu Ichon-dong is located along the Han River and is expected to become the best location in the Gangbuk area as the Yongsan US military base across the street is planned to be developed into a large-scale park.

According to the maintenance industry on the 8th, Ichon-dong Hangang Mansion completed resident inspection on the 4th and is awaiting approval of the project implementation plan. A Yongsan-gu official said, "Before the project implementation approval, a review on the installation of a small park within the complex must be conducted, and it is currently underway," adding, "It is expected to be approved as soon as this process is completed."

Built in 1971, the five-story low-rise Hangang Mansion is the first middle-class apartment in Korea. It was the first in the country to build a model house and attracted attention with apartment sales advertisements, which were rare at the time. With a total of 660 households, it is one of the larger apartments in Dongbu Ichon-dong facing the Han River. Although reconstruction efforts have been ongoing since 2003, including holding a general meeting for the establishment of a union, progress was slow until 2017 when the maintenance plan amendment passed the Seoul city review, accelerating the project. Upon completion, it is expected to transform into a 35-story apartment complex with 1,441 households.

Hangang Samik, located right next to Hangang Mansion, already received project implementation approval in June last year. This year, it plans to pursue approval for the management disposition plan and proceed with demolition and resident relocation next year. Hangang Samik, completed in 1979 with a total of 252 households, will be reborn as a 30-story building with 329 households through reconstruction. Wanggung Mansion is also pursuing a 1:1 reconstruction. It has completed architectural review and is awaiting project implementation approval. The 1:1 reconstruction method does not generate profit through general sales; Raemian Chellitus, which also faces the Han River side by side, underwent reconstruction using this method.

Complexes located near the park are actively remodeling. Although an integrated remodeling project was attempted in 2018 but failed, individual remodeling is being re-pursued due to successive development benefits nearby. Among them, Ichon Kolon Apartment has exceeded the resident consent rate of 67%, a condition for establishing a union. After holding a founding general meeting next month, it plans to apply for union establishment approval from the district office.

Gangchon Apartment, which signed a joint remodeling memorandum of understanding (MOU) with Ichon Kolon, is also pursuing union establishment. Geonyeong Hangaram, considered the ‘leader’ with over 2,000 households, is rapidly collecting resident consent forms. A representative from a nearby A real estate agency said, "These complexes have high floor area ratios, so they are choosing remodeling over reconstruction," adding, "Resident consent is also active."

Dongbu Ichon-dong is likely to pursue high-end remodeling as well. Ichon Hyundai Apartment, which selected Lotte Construction as the contractor, introduced the luxury brand ‘Le L’ for the first time in a remodeling project. First-tier construction companies have already put up banners at Hangaram and Ichon Kolon, including Hyundai Construction’s luxury brand ‘The H’. A representative from a nearby B real estate agency said, "Although the location is good, there has been no new supply since Raemian Chellitus in 2015," adding, "If the old complexes are reborn as new apartments, their value will also increase."