The Turbulent Gwangmyeong New Town... 'Biggest Catch' Zone 11 Receives Management Disposition Approval

4291 Households in District 11 Redevelopment Pass Final Gate
10 of 11 New Town Areas Undergoing Approval, Relocation, Demolition, Construction, and Move-in Procedures
Transforming into a New Residential Town with 25,000 Households

[Asia Economy Reporter Onyu Lim] The largest district within Gwangmyeong New Town in Gwangmyeong City, Gyeonggi Province, District 11, has received approval for the management disposition plan, the final hurdle in the permit process. With this decision, 10 out of the 11 redevelopment districts in Gwangmyeong New Town have passed the critical 90% completion mark of the project, giving a strong boost to the New Town project, which will total approximately 25,000 housing units. In particular, as redevelopment in the old city area of the New Town and low-rise reconstruction of public housing in the nearby Cheolsan district begin in earnest, the area is expected to transform into a representative residential town adjacent to the southwestern part of Seoul.

According to the maintenance industry on the 14th, Gwangmyeong City approved the management disposition plan for the housing redevelopment project in District 11, covering Gwangmyeong 4-dong and Cheolsan 4-dong, the day before. This comes five years after the establishment of the association in 2016. The management disposition plan is crucial as it concretely finalizes the estimated project costs and the members’ contributions. Following this, relocation and demolition will proceed, followed by construction and general sales procedures.

District 11 is a mammoth-sized area with a total of 4,291 housing units, making it the largest within Gwangmyeong New Town. It is also close to Gwangmyeongsageori Station on Subway Line 7, which connects directly to Seoul’s Gangnam area. Construction is being handled by Hyundai Engineering & Construction and HDC Hyundai Development Company. A representative from Gwangmyeong-dong A Real Estate Agency (licensed) stated, "Currently, the premium on an 84㎡ (exclusive area) occupancy right in District 11 is around 700 million KRW," and predicted, "The approval of the management disposition plan will reduce the number of available properties for transaction."

Gwangmyeong New Town is the largest redevelopment site in the southwestern metropolitan area. Approximately 25,000 newly built apartments will be supplied over an area of 1,146,000㎡ covering Gwangmyeong and Cheolsan-dong. Following the approval of the management disposition plan for District 9, which had been relatively slow in progress, at the end of June, the completion of permits for District 11 brings the overall New Town closer to completion. District 12, which has not yet received approval for the management disposition plan, obtained project implementation approval in March last year and is currently preparing to apply for the management disposition plan approval.

District 16, the fastest progressing area, completed construction last November and has transformed into Gwangmyeong Arc Fore Jaive. District 15 is scheduled for completion in October next year, and District 14 in September 2023. Districts 1, 4, 5, and 10 have received management disposition plan approval and are currently undergoing demolition and relocation. District 2 has completed demolition and will begin general sales in October.

Recently, with the government-led public development applications for Districts 3, 6, 8, and 13, which were deregulated from redevelopment zones in 2013 and 2015, there is a possibility that the scale of Gwangmyeong New Town could increase by about 10,000 housing units. District 13 is focusing on public redevelopment, while the other three districts are emphasizing urban complex projects.

Reconstruction of aging public housing apartments in the Cheolsan and Haan-dong areas is also gaining momentum. The low-rise reconstruction of Cheolsan Jugong complexes 4, 7, 8, 9, 10, and 11 is nearing completion.

Located adjacent to Seoul’s Yangcheon, Guro, and Geumcheon districts, the area is expected to see rapid improvements in residential environments, with transportation benefits such as the Sinansan Line and Wolpyeong Line following one after another. Apartment prices in the Gwangmyeong and Cheolsan-dong areas are rising sharply. Jang Jaehyun, director at Real Today, said, "The old city area of Gwangmyeong has great long-term value due to large-scale redevelopment and reconstruction projects improving school districts, transportation, and other residential environments," but advised, "However, since investment costs have already become very high, an approach focused on actual demand is necessary."