Hagye 5 Complex to be Redeveloped with up to 47 Floors and 1,336 Households
Sanggye Madeul Complex Planned with up to 19 Floors and 363 Households
Relocation Scheduled for First Half of 2025, Construction to Begin in Second Half
The first public rental apartment redevelopment project in Korea will begin in Seoul. The target sites are Hagye 5 Complex and Sanggye Madeul Complex. Seoul Housing and Communities Corporation (SH) has started preparations, including setting relocation costs, aiming to commence construction in the second half of next year.
According to Seoul city officials on the 4th, SH will announce the redevelopment project plans for Hagye 5 Complex and Sanggye Madeul Complex next month. Before the announcement, SH held a recent residents' briefing session to inform existing rental housing residents about the standards for relocation compensation.
Korea's First Rental Housing Redevelopment... Support for Relocation Costs
Relocation compensation consists of relocation costs and moving expenses. Relocation costs are set according to the number of household members: 10 million KRW for a single-person household, 15 million KRW for two-person households, 21 million KRW for three-person households, 26 million KRW for four-person households, 28 million KRW for five-person households, and 32 million KRW for six-person households. Moving expenses are fixed at 1.3 million KRW regardless of household size. SH has established a principle that relocation costs will not be paid to residents who move in after the residents' briefing session.
Existing residents will be supported by utilizing vacant units in nearby rental housing or newly securing purchased rental housing. As of June, there are 555 tenants residing in Hagye 5 Complex and 137 in Sanggye Madeul Complex.
SH plans to begin the relocation process for residents of Hagye 5 Complex and Sanggye Madeul Complex as early as the first half of next year. Construction is targeted to start in the second half of 2025.
Hagye 5 Complex to Transform into a High-Rise Rental Housing with up to 47 Floors
Both complexes are aged rental housing complexes over 30 years old since completion, with a high proportion of residents aged 60 and above. They lack elevators and community facilities, causing inconvenience to residents. They do not meet seismic performance targets, and their fire safety, insulation performance, and noise standards between floors fall short of current regulations. Additionally, parking spaces and electric wheelchair passageways are insufficient.
After redevelopment, Hagye 5 Complex will be transformed into a large complex with up to 47 floors and 6 buildings, comprising 1,336 units ranging from 36 to 84 square meters. Currently, it consists of 13 buildings with 5 floors each and 640 units of 33 square meters. The floor area ratio will be applied at 467%. SH plans to supply 200 long-term lease housing units, 150 land lease sale units, and 346 general sale units out of the increased 797 units.
Sanggye Madeul Complex currently consists of three buildings with 5 floors and 170 units. After redevelopment, it will have up to 19 floors and 363 units ranging from 33 to 45 square meters. The floor area ratio will be applied at 327%. After redevelopment, alongside the existing 170 public rental units, 12 long-term lease units, 18 land lease units, and 163 public sale units will be offered.
An SH official stated, "The increased number of units after redevelopment will be filled with long-term lease housing types 1 and 2. How to supply the remaining units has not been finalized and is under consultation with Seoul city. Community facilities are also being designed, and the construction company will be selected 1 to 2 months before construction starts in the second half of next year once the design is completed."
18,000 Aged Rental Housing Units Over 30 Years Old
This project is the first case of redeveloping aged rental housing. Besides these two pilot sites, SH plans to gradually redevelop rental housing complexes in Seoul that are over 30 years old since completion. The next redevelopment sites will be selected comprehensively considering development conditions, aging status, and whether relocation plans can be established.
There are about 18,000 aged rental housing units over 30 years old in Seoul, and an additional 15,000 units will be added by 2027. Over the next 20 years, 23 complexes with 118,000 aged public rental housing units will reach the reconstruction age.
Movements to redevelop aged rental housing are becoming more active. Bills aimed at easing regulations to promote redevelopment of aged rental housing have been proposed in the National Assembly. The amendment to the "Long-term Public Rental Housing Residents' Quality of Life Improvement Support Act," proposed in June, includes provisions allowing the state to support management fees and usage fees used for public purposes. Another bill proposes changing the regulation that mandates welfare facilities such as senior centers, children's playgrounds, and daycare centers in housing complexes above a certain size. Considering the high proportion of elderly residents, the bill's core is to allow project entities to conduct resident demand surveys and install or maintain facilities based on the results.
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