[Exclusive] Notification of 'Land Sale Amount' Results for the First Gate of Ichon-dong Jungsan Model Reconstruction

Yongsan-gu Notifies Sale Price to Jungsan Pilot Promotion Committee
Land Sale Price Confirmed at 109.2 Billion Won Based on Appraisal
Land Purchase Consent Rate Must Exceed 75% Overall and 50% Per Dong for Contract
Sales Contract Must Be Completed by June 4 Next Year at Notified Price

Owners of the Jungsan Shibeom Apartments in Seobu Ichon-dong, which were completed 54 years ago, have been notified of the appraised value for land acquisition, the first hurdle in the reconstruction process. Jungsan Shibeom is a land leasehold apartment, and reconstruction can only begin after purchasing the land owned by the Seoul Metropolitan Government. Once requests for land sale contracts are received from 75% of all owners and more than 50% per building, the land ownership transfer process will commence.

Panoramic view of Seobu Ichon-dong Jungsan Prototype Apartment (Photo by Han Jinju)

At the beginning of this month, Yongsan-gu informed the Jungsan Shibeom Reconstruction Promotion Committee of the final sale price following the Shared Property Deliberation Committee meeting for the site sale. This comes two years after the 2022 city Shared Property Deliberation Committee decided to sell the city-owned land. The promotion committee held a residents' briefing session on the 24th to inform owners about the related details.

Jungsan Shibeom Apartments, completed in 1970, are land leasehold housing located between the Han River and the Yongsan Railroad Maintenance Depot, consisting of 266 units ranging from 39 to 59㎡ in exclusive area. The apartments were built on city-owned land, which belongs to the Seoul Metropolitan Government. Owners only have rights to the buildings, making reconstruction difficult for 30 years. At one point, the area was included in a plan to integrate the development of the Yongsan International Business District and Seobu Ichon-dong, but after the plan was canceled, individual reconstruction efforts began. In 1996, it was designated as a disaster risk ‘D grade,’ and due to severe aging such as collapsing ceilings and water leaks, reconstruction has become urgent.

The total sale price for the Jungsan Shibeom Apartment site (4,695.5㎡) was set at 109.19678 billion KRW. The sale price was determined by adding the appraisal fees to the amounts evaluated by two appraisal firms.

The appraised value by building and unit (purchase share per unit) is as follows: △ Building 1 (21.96㎡) 517.04 million KRW △ Building 2 (15.2㎡) 369.4 million KRW △ Building 3 (16.5~20.2㎡) 369.89 million to 462.44 million KRW △ Building 4 (10.6~13.29㎡) 241.09 million to 301.38 million KRW (13.29 pyeong) △ Building 5 (22.36㎡) 516.87 million KRW △ Building 6 (14.26㎡) 329.54 million KRW. Currently, Jungsan Shibeom listings are priced around 900 million KRW for 49㎡ units and between 1 billion to 1.2 billion KRW for 59㎡ units.

A Yongsan-gu official stated, "Although there are opinions that the land price is somewhat expensive, I have heard that public sentiment is forming around the necessity to purchase at this price." He added, "As of April, more than 90% of residents expressed their intention to apply for land purchase, and through the promotion committee, a certain level of consent for land sale has been secured."

Panoramic view of Seobu Ichon-dong Jungsan Prototype Apartment (Photo by Han Jinju)

Yongsan-gu decided that sales contracts will only be signed if requests for contracts reach at least 75% of the total and 50% per building, which is the consent rate required for establishing the association. The promotion committee was notified that if residents' willingness to sign sales contracts does not meet the association establishment consent rate, the land sale will not proceed. According to relevant laws, land ownership must be secured for building owners before applying for association establishment approval to grant membership status.

Yongsan-gu also instructed the promotion committee to investigate and report the applicants for contract signing and payment methods. The deadline to sign contracts at the notified appraisal price is June 4, 2025. Since the appraisal value is valid for one year, if contracts are not signed by June 4 next year, a new appraisal must be conducted, which may change the sale price. When Yongsan-gu received the land purchase application from the promotion committee at the end of 2021, the application rate was 94.3%.

Once the land sale contracts for Jungsan Shibeom Apartments are signed and ownership is transferred, the project will proceed to designation as a maintenance zone, establishment of the association, and then full-scale reconstruction. A Yongsan-gu official explained, "Since this is a sale of city-owned land for reconstruction maintenance projects, if the number of people willing to purchase does not meet 75%, it will be difficult to sign sales contracts." He added, "We expect the land ownership transfer to begin within this year."