'House Prices Are Changing'... The Ongoing Trend of Apartment Renaming

Photo by Asia Economy

In recent years, as apartment complex names have become a variable influencing housing prices amid skyrocketing home values, the once quiet trend of 'renaming' is showing signs of resurgence.

According to the Korea Land and Housing Corporation (LH) and Hanam City on the 19th, the apartment complex 'LH Wirye Poelium' in Hakam-dong, Hanam City, which began occupancy last year, recently changed its name to 'Wirye Rosebiang.' Due to LH's chronic brand image issues and last year's land speculation allegations involving LH executives, residents of LH apartment complexes currently have a strong aversion to the LH logo. Voices demanding the removal of the logo have continued, citing disadvantages and discriminatory treatment simply for living in apartments bearing the LH logo.

At the National Assembly's Land, Infrastructure and Transport Committee audit held in October last year, LH President Kim Hyun-joon stated regarding the removal of the LH logo from LH's newlywed hope towns, "We will review the matter by gathering opinions from the Ministry of Land, Infrastructure and Transport and residents." However, no visible action has been taken by LH to date. In this regard, LH explained, "We are currently reviewing various options comprehensively considering the continuity and effectiveness of public housing policies related to the newlywed hope town brand application, as well as resident satisfaction."

Following this case becoming known, a movement to have residents directly remove the LH logo is spreading. In nationwide newlywed hope town resident communities and real estate cafes, inquiries about the 'procedure for name changes' are ongoing. The A complex in Banghwa-dong, Gangseo-gu, Seoul, has also recently entered the administrative process for changing its complex name.

Expectations for enhancing apartment complex image and increasing asset value through renaming are also appearing in private complexes. Last year, five complexes in Gangseo-gu received approval from the Gangseo District Office for name changes. A common feature of these complexes is that all include 'Magok' in their names. This is interpreted as an attempt to ride the wave of Magok-dong's rise as a core area of Gangseo-gu and the rapid increase in real estate prices.

Changing an apartment complex name is possible by obtaining consent from more than three-quarters of the owners and approval from the local government, according to Article 18, Paragraph 2 of the 'Regulations on the Entry and Management of Building Registers.' There are concerns that an increase in approvals for desired name changes could lead to other problems.