Inaugural General Meeting Completed... Cooperative Establishment Approval Expected in June
Agreement Reached on Commercial Property Owners' Calculation Ratio, Reflected in Bylaws
Section 6 Expected to Select Construction Company as Early as Year-End
Record-High Prices in Mokdong as Redevelopment Accelerates
The Mokdong New Town's Section 6, the first redevelopment site in the area, has completed the preliminary steps for establishing its cooperative association. As redevelopment projects in the Mokdong area accelerate, record-high transaction prices are being reported in neighboring complexes.
According to the maintenance industry on May 14, the Mokdong Section 6 cooperative held its inaugural general meeting on May 10. This marks the first case of a cooperative being established among Mokdong's redevelopment sites. At the meeting, the cooperative elected its president, board members, and representatives, and passed agenda items such as the selection of a professional maintenance management company. Top 10 construction firms participated in large numbers, making a strong impression on the cooperative members.
Mokdong Section 6 has been pushing for direct cooperative establishment, skipping the formation of a promotion committee. This system allows for public support in the early stages of the project but requires over 50% consent from each building. According to the cooperative, the consent rate by building has reached about 90%. The cooperative plans to submit its application for establishment this week and expects official approval by early next month.
During the preparation process, Mokdong Section 6 faced difficulties securing consent due to conflicts with commercial property owners, but ultimately reached an agreement. The cooperative drafted an agreement setting the rights calculation ratio for commercial property owners at 0.1, and this item was passed at the general meeting. The agreement specifies that for a commercial property owner to be eligible for an apartment allocation, the previous value of their property must exceed 10% of the cooperative member's allocation price. Hwang Heejung, president of the Mokdong Section 6 cooperative, explained, "We drafted the agreement to set the rights calculation standard for commercial property owners at 0.1 and reflected this in the articles of association. All agenda items were passed at the inaugural meeting."
Mokdong Section 6 plans to select its construction company as early as the end of this year. Samsung C&T, Hyundai Engineering & Construction, and DL E&C have reportedly expressed strong interest in winning the contract. The cooperative estimates the total construction cost will be at least 1 trillion won. President Hwang stated, "Once we receive approval to establish the cooperative, we will proceed with selecting a design company, and aim to select a construction company by the end of the year or early next year. Given the large scale of the Mokdong redevelopment project, many companies believe it will be advantageous to make a strong showing from the very first site."
All 14 complexes in Mokdong have completed the public inspection notice process, and currently, four complexes?Sections 8, 12, 13, and 14?have been officially designated as maintenance zones.
As Mokdong's redevelopment complexes continue to secure their first step with maintenance zone designations, record-high transaction prices are being set in Mokdong on a daily basis. According to KB Real Estate's Weekly KB Apartment Market Trends for the first week of May, Yangcheon-gu saw a 0.27% increase, the highest among Seoul's districts. During the same period, apartment sale prices in Seoul rose by 0.08%.
Since April, most complexes have seen record-breaking transactions. On April 28, a 115-square-meter unit in Mokdong Section 6 sold for 2.8 billion won, and on April 7, a 95-square-meter unit hit a record price of 2.57 billion won. On April 19, a 47-square-meter unit in Section 6 set a new high at 1.81 billion won. In Mokdong Section 8, a 54-square-meter unit changed hands at a record 1.62 billion won on May 7, and on April 12, a 105-square-meter unit sold for a record 2.49 billion won. In Mokdong Section 13, a 74-square-meter unit sold for 2.4 billion won, up 110 million won from the previous record, while a 53-square-meter unit in the same complex sold for 1.875 billion won, up 115 million won from the previous high.
KB Real Estate analyzed, "As the redevelopment maintenance projects gain momentum, home prices remained strong, with the upward trend centered on Mokdong New Town apartments continuing even after the expansion and re-designation of land transaction permit zones."
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