[Report] Over 200 Million Won Increase in Half a Year... Visiting Mokdong 10 Complex with 'Reconstruction Speed'

Public Inspection of Maintenance Plan Since the 21st
Up to 40 Floors, Large Complex of 4,045 Households
Impact of Nearby 6th Complex Maintenance Zone Designation
Total 2,160 Households, Consensus Difficulties Expected
Resident Opposition Grows Over Park and Floor Counts

"House prices have risen so rapidly that buyers can no longer afford them."

On the 25th, a real estate agent in Mokdong New Town, Yangcheon-gu, Seoul, raised his voice while explaining the trend of house prices in Mokdong Complex 10 this year. He explained, "A 96㎡ (29 pyeong) unit that sold for 1.4 billion won in February this year was listed at 1.66 billion won in August, and a 73㎡ (22 pyeong) unit was traded for 1.16 billion won on July 4-5 but sold for 1.28 billion won on September 24, rising by more than 100 million won."

On the 21st, the reconstruction maintenance plan for Mokdong 10 Complex Apartment in Yangcheon-gu, Seoul was unveiled. Photo by Kwon Hyunji

Will the Reconstruction Speed in Mokdong Accelerate?

Expectations for the project’s pace have manifested in the rising house prices of Mokdong Complex 10. Having passed the reconstruction safety inspection in January last year, Mokdong Complex 10 revealed its redevelopment plan on the 21st, 1 year and 9 months later, accelerating the reconstruction process. It is the seventh among the 14 complexes in Mokdong New Town, following Complexes 6, 4, 14, 8, 13, and 12. Reconstruction gained momentum after applying for the Fast Track advisory process in June last year. The head of a nearby T real estate agency said, "There is considerable demand from people looking to move from nearby Daerim and Singil-dong, and even today, a buyer came by expressing interest," adding, "Since the redevelopment plan has just been released, I expect this atmosphere to continue for the next two weeks."

The accelerated progress of Mokdong Complex 6 also had an impact. In July, Complex 6 was the first among Mokdong reconstruction complexes to be designated as a redevelopment zone. Breaking the stereotype that 'Mokdong reconstruction projects are slow,' the designation of Complex 6 as a redevelopment zone has raised expectations for Complex 10 as well. The head of Y real estate agency said, "You can consider that all reconstruction complexes in Mokdong New Town are similarly affected," and added, "The recovery of the Seoul real estate market in the first half of this year combined with the designation of Complex 6 as a redevelopment zone caused house prices in the area to rise at a frightening speed."

On the 22nd, a residents' briefing session for the 'Mokdong 10 Complex Reconstruction Maintenance Plan' was held at Haenuri Town in Yangcheon-gu, Seoul. Photo by Kwon Hyunji

Divergent Resident Opinions: The Biggest Variable

However, due to the large number of households in Complex 10, it is difficult to reach consensus at each stage of reconstruction. At the 'Mokdong Complex 10 Reconstruction Redevelopment Plan' briefing held on the 22nd at Haenuri Town in Yangcheon-gu, Seoul, residents expressed numerous complaints.

The biggest issue was the park placement. According to the redevelopment plan, a rectangular neighborhood park will be located at the northeastern edge of the complex, which residents fear could reduce profitability. A resident in their 50s said, "Is it reasonable to create a park on this 'golden land' where even building apartments is insufficient?" and added, "The value of using the park is also excessively low." Another resident emphasized, "Placing apartments here to widen the spacing between buildings would also be beneficial for improving the residential environment." Hwang Seong-sik, executive director of KTS Engineering, the urban planning firm that prepared the redevelopment plan, responded, "The park location is already determined in the higher-level district unit plan," and explained, "Since the district unit plan was recently updated, it is difficult to make significant changes."

Location map of 'Mokdong 10 Complex' reconstruction site in Yangcheon-gu, Seoul. Provided by Yangcheon-gu Office

There was also strong opposition regarding building heights. Mokdong Complex 10 is subject to height restrictions due to its proximity to Gimpo Airport, allowing buildings up to a maximum of 40 floors. Some front buildings are planned as mid-rise with 15 floors. One resident said, "Lowering some buildings to 15 floors increases the number of buildings and the building coverage ratio, making it feel cramped," and requested, "If the height restriction cannot be lifted, please allow flexible building arrangements so that 15-floor buildings can be raised to 25-30 floors."

There were also considerable counterarguments. Resident Lee said, "As expectations for reconstruction grow, residents tend to make unreasonable demands," and criticized, "The redevelopment plan is based on the district unit plan, so shaking its foundation is problematic." Another resident pointed out, "Wasn't the advisory sought from Seoul City to shorten the redevelopment period? Opposing this redevelopment plan will only delay the project."

With such divergent resident opinions, the head of nearby T real estate agency said, "If there were fewer households, unity would be easier and project progress faster, but here, with a total of 2,160 households, there could be disputes over whether to use a trust or union system." The head of Y real estate agency also said, "Unlike Gangnam, where prices are similar across complexes, in Mokdong only the New Town apartments are high-priced while others are low," and added, "Even if reconstruction proceeds, price ceilings limit the potential for large profits."

Meanwhile, Mokdong Complex 10 will be reconstructed from the existing 15 floors and 2,160 households into a large complex with up to 40 floors and 4,045 households (including 510 public housing units). Yangcheon-gu will conduct a public inspection of the redevelopment plan until the 23rd of next month, collect resident opinions, and then apply for redevelopment zone designation to Seoul City after a second Fast Track advisory meeting. The redevelopment zone designation is expected as early as the first half of next year.