Banpo Jugong 1 Complex 1·2·4 Districts Considering Ceiling Height Increase

'Banpo DH Class T' bird's-eye view / Provided by Hyundai Construction

[Asia Economy Reporter Noh Kyung-jo] The Banpo Jugong 1st Complex 1, 2, and 4 District Reconstruction Association (Banpo DH Class) in Seocho-gu, Seoul, is pushing to increase the floor height (number of floors). The plan is to hold a resident vote after the Seoul Metropolitan Government finalizes and announces the '2040 Seoul Urban Basic Plan' next month, which includes the abolition of the apartment '35-floor rule.'

On June 6, Oh Deuk-cheon, head of the Banpo Jugong 1st Complex 1, 2, and 4 District Reconstruction Association, said, "The project period may take six months longer, but since the distance between buildings will widen and the landscape will improve significantly, it is necessary to consider increasing the floor height." He also mentioned that the floor area ratio will remain unchanged, so the apartment heights will vary, but the number of general sale units will not change.

The awaited abolition of the 35-floor rule refers to the removal of the 35-floor height limit for riverside apartments along the Han River, introduced by former Seoul Mayor Park Won-soon in 2014. Nearby reconstruction complexes such as Acro River Park (formerly Sinbanpo 1st Complex) and Raemian One Bailey (formerly Sinbanpo 3rd Complex and Gyeongnam Apartment) were built up to a maximum of 35 floors due to this regulation.

Oh said, "Due to recent increases in raw material prices and labor costs, a resident vote for approval or disapproval is planned," but he emphasized the possibility of increasing the floor height. However, having observed the cost burdens caused by extended construction periods in the Dunchon Jugong reconstruction (Olympic Park Foreon) project in Gangdong-gu, he is determined to persuade the association members well and gather sufficient opinions.

Currently, the 1, 2, and 4 Districts, which are in the asbestos removal completion stage, plan to finish demolishing above-ground buildings by the end of the year and start construction in the first half of next year. A total of 5,002 new apartments, including rental units, will be built. Although this is fewer than the originally planned 5,335 units, when combined with the 3rd District reconstruction (2,091 units) constructed by Samsung C&T, the Banpo Jugong 1st Complex will have over 7,000 units in total. Moreover, its location near a subway station and along the Han River makes it one of the most sought-after reconstruction projects.

This is why it has not been significantly affected by the price decline due to the real estate market downturn. According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, a 140㎡ unit was traded for 7.3 billion KRW in September, setting a new record. Although a 106㎡ unit was traded for 5.23 billion KRW last month, down more than 200 million KRW from the previous transaction in April (5.45 billion KRW), it remains at a similar level to the real transaction prices from October to November last year.

Oh said, "Most reconstruction associations currently promoting projects are probably considering increasing floor heights," adding, "We will create a reconstruction complex with a better environment."