'Gangnam Reconstruction Symbol' Eunma, Union Establishment General Meeting D-DAY... House Prices V-Shaped Rebound

General Meeting Held on the 19th at aT Center in Yangjae-dong
After Various Trials and Tribulations, Approval by the Promotion Committee Achieved After 20 Years
If Cooperative Establishment is Approved Within the Year, Reconstruction Will Enter Full Swing

The establishment of the union for Eunma Apartment in Daechi-dong, Gangnam-gu, Seoul, known as the symbol of reconstruction in the Gangnam area, is imminent. It has been 20 years since the Reconstruction Promotion Committee was formed. Eunma Apartment has long remained a 'reconstruction candidate site' amid repeated conflicts among owners and strict regulations aimed at curbing rising housing prices. As the union establishment for Eunma Apartment is anticipated, housing prices, which had sharply declined during the real estate downturn, are showing a V-shaped rebound trend.

Our Gangnam-gu Daechi-dong Eunma Apartment Complex [Image source=Yonhap News]

According to the maintenance industry on the 19th, Eunma Apartment will hold a union establishment general meeting at 2 p.m. at the aT Center in Yangjae-dong, Seocho-gu. It has been a full 20 years since reconstruction efforts began in 1998 and the Promotion Committee was approved on December 31, 2003.

The biggest focus of this meeting, along with the establishment of the union, is the election of the union president. The candidates are Choi Jeong-hee, the Promotion Committee Chairperson, and Lee Jae-seong, the representative of the Eunma Owners' Association. Both candidates have pledged rapid reconstruction, including starting relocation within two years. The Promotion Committee expects that once the union establishment general meeting concludes successfully, the union establishment approval will be obtained from Gangnam-gu Office within this year, putting the project on track.

Eunma Apartment passed the safety inspection threshold in 2010 but repeatedly faced setbacks in the maintenance plan review. It has drawn intense scrutiny from the government and Seoul city due to rising housing prices, living up to its reputation as the 'top reconstruction project in the private education hotspot.' Ongoing conflicts among owners also hindered reconstruction efforts.

The stalled reconstruction of Eunma Apartment began moving again after Seoul Mayor Oh Se-hoon's inauguration, as various maintenance project regulations were eased. Last October, the project passed Seoul City's maintenance plan review with a design proposal of up to 35 floors.

According to the maintenance plan, Eunma Apartment will be newly constructed through reconstruction from the existing 14 floors, 28 buildings, and 4,424 households to up to 35 floors, 33 buildings, and 5,778 households (including 678 public housing units). Of these, 771 units are for general sale, with construction scheduled to start in 2027 and move-in targeted for 2030. However, this maintenance plan is expected to change after union establishment approval. Since Seoul City recently abolished the '35-floor rule,' it is highly likely that the existing 35-floor plan will be raised to 49 floors and the number of households increased.

If the number of floors is increased, the issue of additional contributions from union members is also expected to be somewhat resolved. Although Eunma Apartment is highly symbolic, its floor area ratio is 204%, so its profitability is not outstanding. Under the current plan, additional contributions from union members are estimated to be around 300 million to 700 million KRW.

The area around Eunma Apartment in Daechi-dong, Gangnam-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

As the reconstruction of Eunma Apartment becomes more tangible, prices are also rebounding in a V-shape. For an 84㎡ unit, after reaching a peak price of 2.82 billion KRW in November 2021, prices fell to 2.1 billion KRW in October last year due to the real estate downturn but have recently recovered quickly to 2.65 billion KRW.

A representative from a nearby real estate agency said, "With the union establishment for Eunma reconstruction imminent, housing prices are poised to surpass Mido, a nearby reconstruction complex that has always been more expensive than Eunma," adding, "Royal units with full renovations are listed in the 2.8 billion KRW range."