Enhanced Stability for Private Rental Housing! ‘7.24 Housing Act’ Amendment Leads to First Member Recruitment in Seoul for ‘Gangdong Station Mark One’

With the amendment in effect, recruitment of union members is now possible only after securing more than half of land use rights... Stability is high as recruitment begins after obtaining a notification certificate from local governments

Since July 24th of last year, the amended Housing Act aimed at strengthening the stability of regional housing cooperatives has been applied. This was established to preserve the original intent of the regional housing cooperative as a ‘Goods’ and to minimize the damages suffered by cooperative members.

Among the revised provisions, the notable ones related to regional housing cooperatives concern the strengthening of land acquisition requirements. The law was amended so that cooperative member recruitment can only proceed if at least 50% of the land use rights for the construction site are secured. Previously, there were no regulations regarding the rate of land use rights acquisition, which led to indiscriminate recruitment of cooperative members.

Another provision enhancing stability is that member recruitment can only occur after the recruitment report is accepted by the relevant local government. This means that the local government will review the project to verify its legality. The amendment also specifies that once the recruitment report is accepted, it must be announced on the local government’s website. This strengthens the transparency of housing cooperative projects and implies that regional housing cooperatives with poor conditions cannot proceed with the project.

The amendment also stipulates that at least 80% of land use rights must be secured to establish the cooperative, with a minimum of 15% specified as well, further enhancing stability. Additionally, at the time of project approval, it is required to secure ownership rights to at least 95% of the land, ensuring thorough verification of land acquisition at every stage from start to finish of the project.

With the implementation of the July 24th Housing Act significantly strengthening the stability of regional housing cooperative projects, ‘Gangdong Station Mark One,’ which is directly benefiting from the extension of Line 5 and the Cheonho-Seongnae Redevelopment Promotion District development, is attracting attention in the real estate market.

This complex is the first regional housing cooperative apartment in Seoul to recruit members after the July 24th Housing Act amendment. According to the law, which requires local government acceptance of the recruitment report before member recruitment, the Gangdong District Office, the competent authority, issued the recruitment report acceptance certificate, and on June 8th, the member recruitment announcement was made, officially starting the project. It is drawing strong interest as a complex that begins after sufficiently securing project stability.

The complex mainly offers small to medium-sized units preferred by actual users, and is surrounded by various infrastructures such as transportation, shopping, education, and nature, promising a convenient lifestyle. As a super-station area complex, Exit 4 of Gangdong Station on Line 5 is located about 20 meters from the complex. With the 7.7 km extension section from Sangildong Station, the terminus of Line 5, to Hanam Geomdansan Station having opened in March last year, rapid access is available not only to Godeok Gangil District but also to Misa and Hanam, making it even more attractive. The complex is adjacent to Cheonho-daero, which will become the gateway center of Gangdong with ultra-high-rise mixed-use development for business, commerce, and residence, facilitating easy access to Olympic-daero.

Another advantage is the diverse living infrastructure located near the complex. Shopping, cultural, and leisure facilities are well-equipped, making daily conveniences easy to resolve. Large shopping facilities such as E-Mart Cheonho Branch, 2001 Outlet Cheonho Branch, and Hanaro Mart are nearby for easy visits, and Gangdong Seongsim Hospital is also close. Green spaces offering comfort such as Olympic Park, Iljasan Park, and Gildong Ecological Park are abundantly available. Seongil Elementary School is nearby, and Seongnae Middle School, Hansang Middle School, Youngpa Girls’ Middle School, and Dunchon Middle School are in the vicinity, providing an excellent school commute environment. Prestigious school districts including Paejae High School, Hanyoung Foreign Language High School, Boin High School, Dunchon High School, and Boseong High School are also formed in the nearby area.

Development projects such as the Cheonho-Seongnae Redevelopment Promotion District and Cheonho New Town, which represent Gangdong-gu, are also underway nearby. These projects are being carried out by dividing six zones into central and residential types, and the area is set to be reborn as the ‘Second Jamsil.’ The Cheonho-Seongnae Redevelopment Promotion District project, centered on the Cheonho-daero, Gangdong-gu’s representative commercial area, aims to complete a mixed residential area combining business, commerce, and residence.

A representative of Gangdong Station Mark One said, “As redevelopment projects within the promotion district continue to succeed, the residential environment along Cheonho-daero is rapidly improving. This regional housing cooperative apartment in a super-station area shares the living infrastructure of Songpa-gu and also shares the Gangnam living zone.” He added, “For those interested in regional housing cooperative projects, choosing a site with guaranteed stability after the July 24th Housing Act amendment will be a great opportunity to purchase a home at a reasonable price without a subscription savings account.”

Meanwhile, the Gangdong Station Mark One sales office is located in Songpa-gu, Seoul, and operates a prior visit reservation system to prevent COVID-19 and ensure visitor convenience and minimize contact between visitors.