Apartment Complex Divided into Two Sections Could Be Connected by Han-nam to Yangjae IC Underground Passage
Passing the Detailed Safety Inspection Remains a Challenge
[Asia Economy Reporter Onyu Lim] The Hyundai Apartments in Seocho-dong, Seocho-gu, Seoul, divided into two complexes by the Gyeongbu Expressway, have passed the preliminary safety inspection for reconstruction. Thanks to Seoul City's push to underground the section between Hannam IC and Yangjae IC, the reconstruction projects of not only this complex but also the surrounding aging mid-rise complexes are expected to gain momentum.
According to the maintenance industry on the 29th, Hyundai Apartments recently passed the preliminary safety inspection for reconstruction conducted by Seocho District Office. This came about two months after the Reconstruction Promotion Preparation Committee, approved at the residents' representative meeting earlier last month, collected consent forms to apply for the preliminary safety inspection.
Built in 1989, this apartment complex consists of five buildings with up to 15 floors and 412 households. It features medium to small-sized units ranging from 62㎡ (exclusive area) to 84㎡, with a floor area ratio of 196%. It is adjacent to Nam-Bu Terminal Station on Subway Line 3 and has easy access to Seocho IC, making transportation excellent. Seoil Elementary School is located right next to the complex.
Despite this advantageous location, the complex has been undervalued compared to nearby apartments due to the obstacle posed by the Gyeongbu Expressway. The complex is divided into three buildings on the east side and two buildings on the west side, separated by the expressway.
However, a green light for reconstruction was turned on as Seoul City recently allocated a budget of 600 million KRW for a feasibility study on undergrounding the frequently congested section of the Gyeongbu Expressway between Hannam IC and Yangjae IC. Undergrounding the expressway will open the way to connect the divided complexes and enable reconstruction.
The Hyundai Apartments Reconstruction Promotion Preparation Committee stated that they will actively consult with Seoul City and Seocho District Office regarding design and other matters going forward. A representative from a nearby real estate agency, A, explained, "The asking price for 30-pyeong units in Seocho Grand Xi, which reconstructed the Rainbow Apartments across the street, reaches 2.4 billion KRW. With the undergrounding of the Gyeongbu Expressway resolving design uncertainties, many residents have become supportive of reconstruction." As the reconstruction project gains momentum, the asking price for this apartment, which had a highest actual transaction price of 1.75 billion KRW for an 84㎡ unit, has surged to 2.1 billion KRW.
However, there are still many hurdles to overcome before full-scale reconstruction. Due to the government's strengthened safety inspection regulations, passing the detailed safety inspection and appropriateness review is not easy. In 2018, the Ministry of Land, Infrastructure and Transport tightened safety inspection standards by focusing more on structural stability (increasing from 20% to 50%) rather than residential environment (decreasing from 40% to 15%). As a result, even if the quality of life for residents significantly deteriorates due to aging, reconstruction becomes difficult if there are no structural problems.
Just this year, complexes such as Mokdong New Town 9 and 11 in Yangcheon-gu, Godeok Jugong 9 in Gangdong-gu, and Taereung Woosung in Gongneung-dong, Nowon-gu, failed safety inspections. These complexes received a D grade, indicating reconstruction feasibility, in detailed safety inspections conducted by private firms but were blocked by public institutions' appropriateness reviews, resulting in reconstruction being stalled.
Although Seoul Mayor Oh Se-hoon is requesting deregulation of safety inspections to revitalize reconstruction, the Ministry of Land, Infrastructure and Transport has shown a lukewarm response, citing concerns that it could stimulate housing prices. A representative from a maintenance project consulting firm said, "Public institutions are inevitably influenced by policy. This is why complexes like Sangye Jugong 6 and others are currently adjusting their pace before the appropriateness review stage while waiting for regulatory relaxation."
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