Even in the Real Estate Ice Age... Remodeling in Songpa and Gangdong Heats Up

Approval Granted for GarakSangA 2nd Phase and Myeongil Hyundai Remodeling Associations
Neighboring Complexes Also Accelerate Association Formation
Rising Expectations Amid Consecutive Success Stories

Apartment view around Seoul./Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Ryu Tae-min] Aging apartments in the Songpa and Gangdong districts, part of Seoul’s “Gangnam 4 Districts,” have begun to experience a remodeling boom. Mid-rise complexes such as Garak Sang-a 2nd Complex and Myeongil Hyundai have received approval for the establishment of remodeling associations, and nearby complexes are also pushing forward with association formation, accelerating remodeling efforts.

According to the maintenance industry on the 4th, the Myeongil Hyundai Apartments in Gangdong-gu, Seoul, received approval for the establishment of a remodeling association from the Gangdong District Office on the 1st. Establishing a remodeling association requires the consent of more than two-thirds of the members. This complex, completed in 1988, consists of 2 buildings with a total of 226 households. The floor area ratio (the ratio of the total building floor area to the land area) is 249%, and the building coverage ratio (the ratio of the building’s floor area to the land area) is 20%. It is a transit-oriented complex located within 500 meters of Myeongil Station on Subway Line 5.

Nearby Myeongil Jungang Heights is also accelerating its project by selecting a construction company. Myeongil Jungang Heights, which received approval for association establishment in May, plans to close bidding for construction companies by August 3rd. This complex, completed in 1992, consists of 5 buildings with a total of 410 households, with a floor area ratio of 240% and a building coverage ratio of 21%.

In Songpa-gu, remodeling projects in various complexes have also gained momentum. Garak Sang-a 2nd Complex in Ogeum-dong, Songpa-gu, received approval for remodeling association establishment from the Songpa District Office on the 21st of last month. This came just a month and a half after the general meeting for association establishment was held on May 9th. This complex, located right in front of Gaerong Station on Subway Line 5, was completed in 1988 and consists of 6 buildings with a total of 750 households. The floor area ratio is 249%, and the building coverage ratio is 22%. Through horizontal and vertical extension remodeling, it plans to be reborn as a complex with 862 households. The promotion committee stated that it plans to complete the selection of a construction company in the second half of this year.

Other aging complexes in the area are also speeding up their remodeling projects. The nearby Garak Kumho Apartments held a general meeting for association establishment in May and are awaiting approval for association establishment. Completed in 1997, this complex consists of 8 buildings with a total of 915 households and has a floor area ratio of 397%. The promotion committee plans to increase the number of households to 1,000 through remodeling. The adjacent Garak Hanshin Apartments officially launched a promotion committee this year and are accelerating project progress.

Despite the recent downturn in the Seoul real estate market, the acceleration of remodeling projects in Songpa and Gangdong districts is due to the high profitability of projects in the “Gangnam 4 Districts,” where housing prices remain expensive. Additionally, expectations have risen as successful remodeling cases continue to emerge in the area. ‘Jamsil The Sharp Ruben,’ which is the first in the country to attempt vertical and extension remodeling, attracted 7,310 applicants for 29 units despite a high sale price of 65 million KRW per 3.3㎡. Earlier this year, ‘Songpa The Platinum’ also received 75,382 applications for 29 units, showing an average competition rate of 2,599 to 1.