"The Choice of Super High-Rise Ultimately Belongs to Residents"…Why Banpo 1st Complex Rejected 49 Floors

"The Choice of Ultra-High-Rise Ultimately Belongs to Residents"…Why Banpo 1st Complex Rejected 49 Floors
Original Plan of 35 Floors Approved After Rejection of Higher Floors
Completion Delayed, Project Costs Significantly Increased
"Also Influences Redevelopment Choices in Yeouido and Gangnam"

"Increasing the number of floors does not necessarily mean higher density (number of households). However, the project cost, including construction expenses, will increase. Even if the 35-floor height limit is lifted, residents will ultimately make (voluntary) choices considering these factors."

This was the explanation given by Cho Nam-jun, Director of the Seoul City Urban Planning Bureau, on the 8th amid controversy over special favors related to the '70-floor allowance' for the Apgujeong reconstruction. Ultimately, whether to pursue ultra-high-rise reconstruction depends on the capability and choice of the residents proposing innovative designs.

In fact, as Director Cho mentioned, there was a case where residents rejected an ultra-high-rise apartment reconstruction plan along the Han River. This was the reconstruction association of Banpo Jugong Complex 1, 2, and 4 districts in Banpo-dong, Seocho-gu, Seoul. At the general meeting held on the 16th, instead of the newly proposed design plan of up to 49 floors, the association decided to maintain the existing 35-floor design plan. The 49-floor design plan was rejected with 1,297 votes against and 634 votes in favor. Accordingly, this apartment will proceed with the existing plan of 35 floors and 5,002 households and is scheduled for completion in November 2027.

Apartments in the Banpo and Jamwon areas began to be built in the late 1970s, and most complexes are now approaching the reconstruction age. The "Banpo Induced Maintenance District Master Plan" submitted by Seocho-gu involves demolishing about 10,000 old apartment units and rebuilding approximately 20,000 units with buildings up to 50 stories high. The photo shows the Banpo Jugong Complex 1, a representative Banpo reconstruction complex.

The Banpo Jugong Complex 1, 2, and 4 districts association received project implementation approval in September 2017 and began reconstruction with a maximum height of 35 floors. This was planned as the maximum height according to Seoul City's floor regulations at the time. Relocation began in June 2016, and demolition has now been completed.

However, after Oh Se-hoon took office as mayor of Seoul, the situation changed with the announcement of the '2040 Seoul Plan' in March last year. The 35-floor height limit for apartments along the Han River was lifted. Consequently, the 'up to 49 floors' plan emerged internally. This was the context in which the plan was put to a vote at the recent general meeting.

The result was rejection. Although increasing the maximum number of floors by 14 would increase the number of households with Han River views and create an opportunity to become a Han River landmark, the association members chose to keep the existing 35-floor plan.

The reason was that they valued faster completion and cost-effectiveness more than an ultra-high-rise Han River view landmark. According to the construction company Hyundai Engineering & Construction, changing the design plan to 49 floors would extend the construction period from the existing 44 months to 51 months, an increase of 7 months. This would delay completion from November 2027 to June 2028. Considering the announcement of changes to the maintenance plan and approval of changes to project implementation, there was also a risk of further extending the project period.

Moreover, the increase in project costs due to the higher floors was significant. An additional 220 billion KRW was required, including 150 billion KRW for construction costs, 30 billion KRW for permit fees, and 40 billion KRW for relocation financial costs.

Therefore, the association members chose faster completion and cost savings. It is known that they wanted a quick process as nearly 20 years have passed since the reconstruction project began and the average age of the association members is in their 70s.

A real estate industry official said, "The decision of Banpo Complex 1, 2, and 4 districts is expected to have a considerable impact on the decisions of major reconstruction complexes in Gangnam and Yeouido, which are considering ultra-high-rise landmarks following the lifting of the 35-floor height limit."