New Apartment in Just 2 Years Without Moving... Hyundai E&C Unveils 'Secret Weapon' [Real Estate AtoZ]

Announcement of Major Renovation Business, "The New House"
World's First Non-Relocation Remodeling While Living
Launching at Hillstate Complex 2 in Samseong-dong
Other Brands Can Also Be Rebranded as Hillstate
Lower Financial Burden with Subscription-Based Installment Plan

Hyundai Engineering & Construction has unveiled its new large-scale renovation business, "The New House," which transforms aging apartment complexes into near-new condition without requiring residents to relocate. This is the world's first "non-relocation renewal" model, distinct from conventional reconstruction or remodeling. The company is targeting older complexes with high existing floor area ratios, where reconstruction is less feasible.

"A New Era: Transforming While Living"

Lee Inki, Head of the Housing Business Division at Hyundai Engineering & Construction, is introducing the new business 'The New House' at a media showcase event held on the 6th at The H Gallery in Gangnam-gu, Seoul. Photo by Choi Seoyoon

At a media showcase event held at The H Gallery in Gangnam-gu, Seoul, on November 6, Hyundai Engineering & Construction introduced "The New House" as "an innovative residential improvement solution based on the principle of residential continuity."

This business originated from the question, "Is it possible to upgrade my living space to be as good as new while still residing in it?"

Lee Inki, Head of the Housing Business Division at Hyundai Engineering & Construction, stated, "We aimed to enhance the value of complexes by completely redesigning the exterior, landscaping, community spaces, and advanced systems while maintaining the existing apartment structures." He added, "Our biggest concern was whether construction could proceed while residents remained and whether safety could be ensured. We thoroughly separated resident and construction pathways and established a safe construction system by applying the latest modular construction methods."

"The New House" renews common areas, exteriors, community spaces, and landscaping while leaving residents' private living spaces untouched. If the project does not exceed the legally permitted floor area ratio, it can be carried out under the Apartment Housing Management Act, led by the residents' representative council. If the floor area ratio is exceeded, the project proceeds under the Housing Act, requiring the establishment of a cooperative association.

Compared to conventional remodeling, this approach offers faster completion and lower costs. The construction period is targeted at around two years, with each household's share of costs set at less than 100 million won. This is at least one-third the cost of traditional remodeling, which typically exceeds 300 million won per household.

Hyundai Engineering & Construction will also introduce a subscription-based financial program in collaboration with Kiwoom Securities, Korea Investment & Securities, and Hana Bank. This allows residents to pay construction costs in long-term installments, significantly reducing their financial burden.

First Project: Hillstate Complex 2 in Samseong-dong

Aerial view of Hillstate Complex 2 in Samseong-dong, Gangnam-gu, Seoul (above) and the expected appearance of the complex after the 'The New House' project. Hyundai Engineering & Construction

Hyundai Engineering & Construction has selected Hillstate Complex 2 in Samseong-dong, Gangnam-gu, Seoul, as its first pilot site. This 18-year-old complex has been criticized for its aging exterior and lack of community facilities. At the time of completion, it did not fully utilize the legal floor area ratio (270%), leaving about 660 square meters of available land. The company plans to use this land to expand landscaping and community spaces and to revamp the exterior with a new facade combining premium stone and bronze metal.

Additionally, they will expand the underground sunken space, which is not included in the floor area ratio, increasing the community area from 853 to 2,756 square meters and adding new premium amenities such as a fitness center, golf practice range, and sauna. The sunken space refers to a semi-basement open area designed to allow natural light and ventilation by partially opening the basement to the ground level.

Lee Hyungdeok, Head of the Major Renovation & Remodeling Team in the Urban Renewal Division at Hyundai Engineering & Construction, commented, "Apartments around 20 years old generally have piping in good condition. The main issue is outdated systems." He added, "By modernizing these systems, we will improve residential convenience, and for complexes that require pipe repairs, we will coordinate with the residents' representative council to carry out repairs sequentially."

Hyundai Engineering & Construction signed a business agreement with Hillstate Complex 2 in Samseong-dong in May and plans to submit a proposal by the end of this year. Once the design, construction costs, and financial program are presented, the project will begin after receiving agreement from half of the residents (for management regulation changes) and two-thirds of the residents (to start construction). The goal is to commence work next year.

The company plans to expand the project to other complexes, such as Shinmyeong Dongbo Apartment in Suwon. Originally slated for remodeling, the Shinmyeong Apartment project is now being considered for conversion to The New House due to lower profitability of the previous plan.

Lee Hyungdeok further stated, "If a complex meets certain standards through 'The New House' project, it can be rebranded as 'Hillstate.' However, our highest-end brand, 'The H,' has strict internal criteria regarding location, unit size, and product quality, so its application will be limited."

Expected cross-sectional view of the sunken community at Hillstate Complex 2 in Samseong-dong, Seoul, after applying Hyundai Construction's "The New House." Part of the basement floor is opened to secure natural lighting and ventilation, expanding community spaces such as fitness and golf practice rooms. Hyundai Construction

Complexes with Over 200% Floor Area Ratio: Targeting a New Market Amid Reconstruction Limitations

Hyundai Engineering & Construction views this project not as a simple variation of remodeling but as a new business sector. With reconstruction and remodeling reaching their limits, the company aims to lead the "renewal while living" market and establish it as a new growth engine for construction firms.

Currently, apartments completed in the 1980s dominate the reconstruction market, but in ten years, high floor area ratio complexes from the 1990s will reach the 30-year threshold for reconstruction and sequentially enter the market. These complexes already have floor area ratios of 200-250%, meaning that even if rebuilt, there will be little to no units available for general sale, making the projects less profitable. Large cost burdens make it difficult for resident cooperatives to proceed, and construction companies also struggle to generate profit. The starting point for this project is the recognition that a "mid-stage improvement model" is needed to enhance complex value through exterior and common area renewal before major issues such as piping and insulation arise within individual units. If this business takes hold, it could absorb demand for brand renewal in existing Hillstate complexes as well as for exterior improvements in other branded complexes.

Byun Kyunghyun, Head of the Urban Renewal Division at Hyundai Engineering & Construction, stated, "Remodeling typically takes four to five years, but 'The New House' can be completed within two years, allowing for faster project turnover. While we are currently in the market-opening phase, when the current urban renewal projects are completed, the number of complexes with high floor area ratios that are difficult to reconstruct will increase significantly, making this model even more profitable."

This content was produced with the assistance of AI translation services.