Reconstruction Accelerates in 12 Complexes
Daegyo to Announce Construction Bid This Month
Sambu Prepares for Union Formation After 5 Years
Housing Prices Surge as Redevelopment Gains Momentum
On June 16, the area surrounding the aging apartment complexes in Yeouido-dong, Yeongdeungpo-gu, Seoul, was adorned with colorful banners. The banners, featuring messages such as "Congratulations on the approval of Yeouido's first project implementation" and "Congratulations on the designation of the maintenance zone," bore the names of leading construction companies. As the Daegyo Apartment, the first site under the 'Rapid Integrated Planning' initiative, is set to announce a construction company bidding notice this month, and Sambu Apartment has announced plans to establish a union for the first time in five years, redevelopment projects are gaining momentum. In response, construction companies are intensifying their behind-the-scenes efforts to win contracts.
The anticipation for redevelopment, evident from the apartment exteriors, has already fueled a surge in housing prices. As record-high prices are being set daily across all unit sizes, some are voicing concerns about signs of overheating in the market.
According to the maintenance industry on June 17, twelve complexes in Yeouido are currently pursuing redevelopment projects. Among the six complexes where maintenance plans have been finalized, Daegyo and Hanyang Apartments are preparing for project implementation approval. Sibeom, Gongjak, Jinju, and Sujeong Apartments are preparing for integrated reviews. Of these, Hanyang (Hyundai Engineering & Construction) and Gongjak Apartment (Daewoo Engineering & Construction) have already selected construction companies. The Seoul Metropolitan Government announced that it aims to finalize maintenance plans for all twelve Yeouido complexes by January next year.
As the pace of redevelopment accelerates, housing prices have risen sharply. According to nearby real estate agencies, the 30-pyeong (exclusive area 95 square meters) unit at Daegyo Apartment, which is progressing the fastest, set a new record price of 2.81 billion won on May 1. The same unit was sold for 2.4 billion won in January and 2.5 billion won two months later. Over the following two months, the price increased by an additional 300 million won. Currently, some listings are priced as high as 3.4 billion won.
On the 16th, banners put up by construction companies are hanging outside the Sambu, Sujeong, and Daegyo apartment complexes located in Yeouido-dong, Yeongdeungpo-gu. Photo by Lee Ji-eun
When looking at price increases over the same period, Sambu Apartment cannot be overlooked. A 27-pyeong (70.74 square meters) unit in this complex was sold for 3.18 billion won on June 11. In April, the actual transaction price was 2.95 billion won, meaning the price jumped by 230 million won in just two months. Although Sambu is moving at a slower pace than Daegyo, as it is only now preparing to establish a union this month, it is considered highly viable due to its low floor area ratio of just 164% and high land share.
Among local real estate agencies, there are also rumors that a 50-pyeong (exclusive area 146.7 square meters) unit in this apartment was sold for 4.8 billion won. Multiple agencies have confirmed that this information appears to be true. In February, a unit of the same size was sold for 3.81 billion won, marking a 1 billion won increase. The current asking price for the same size unit is around 5.3 billion won.
However, some real estate agencies expressed concerns that this streak of record-high prices is somewhat overheated. As listings disappear during periods of price increases, even realtors find it difficult to verify whether transactions have actually taken place, and there are concerns that raising asking prices by hundreds of millions of won is excessive. The head of a real estate agency in the Yeouido area said, "The rumor that a 27-pyeong unit at Sambu Apartment was sold for 3.5 billion won is not true. There are numerous rumors about units being sold for tens of billions of won or record-high prices, but since we have never even seen these listings, there is no way for us to confirm them."
An industry insider well-versed in Yeouido real estate news also commented, "As actual transaction prices have recently surged by 200 million to 300 million won at a time, real estate agencies are not sharing listings. It seems that actual transaction prices remain shrouded in secrecy, with only rumors circulating in real estate communities." A representative from C Real Estate Agency near Yeouido said, "Over several months, only one or two listings occasionally appear, and since there are no properties to sell, rising prices are meaningless."
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