Since the Establishment of the Reconstruction Association in 1995, the Project Experienced Prolonged Delays Due to the Foreign Exchange Crisis, Lack of Feasibility, and Contractor Changes; Shillim-dong Disaster Risk Facility Gangnam Apartment Completed as 'Hillstate New Foret', Move-in Begins in September
[Asia Economy Reporter Jong-il Park] Gwanak-gu (Mayor Park Jun-hee)’s ‘Gangnam Apartment Reconstruction and Maintenance Project’ has finally been completed after three years of construction.
It has been a full 27 years since the establishment of the association was approved in 1995.
Through the reconstruction and maintenance project, ‘Gangnam Apartment’ has been reborn as a prestigious complex in Gwanak-gu, consisting of seven buildings with 35 floors above ground and a total of 1,143 households.
‘Hillstate New Foret,’ the Gangnam Apartment reconstruction complex in Sillim-dong, Gwanak-gu, in which Seoul Housing & Communities Corporation (SH Corporation) participated as a joint project implementer, welcomed its first residents.
Gangnam Apartment, completed in 1974, had its reconstruction association established in 1995 to proceed with the reconstruction and maintenance project due to building aging. However, the project was delayed for a long time due to the foreign exchange crisis, lack of profitability, and multiple changes of construction companies. Additionally, in 2001, it was designated as a disaster-risk facility (Grade D), making it unsuitable for residence and requiring urgent reconstruction.
In response, Gwanak-gu spared no administrative support to ensure the safety of residents living in poor housing conditions and to normalize the project.
Moreover, by establishing an organic cooperation and support system with the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government, and with active cooperation from the association, Gangnam Apartment was restructured in August 2016 into a ‘New Stay (corporate rental housing) linked maintenance project’ promoted by the Ministry of Land, Infrastructure and Transport, finding a solution.
The ‘New Stay linked maintenance project’ is a method where the general sale units supplied are sold to private corporate rental housing operators to provide rental housing. This secures public interest by supplying rental housing at prices lower than the surrounding market and reduces construction costs by resolving unsold risks during the real estate downturn.
In particular, with SH Corporation participating as a joint project implementer, transparent association management was encouraged, and conditions were created to actively promote the project through support measures such as financing.
The ‘Gangnam Apartment Reconstruction and Maintenance Project’ selected a constructor in October 2017, started construction in June 2019, and was completed in August 2022, achieving a successful conclusion 27 years after the association was established.
Mayor Park Jun-hee said, “I feel great satisfaction that the reconstruction apartment maintenance project, which was at risk of suspension due to long-term stagnation, was successfully led by the unified efforts of the public and private sectors,” adding, “We will continue to do our best to build excellent residential infrastructure in Gwanak-gu and contribute to the housing stability of residents.”
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