Bangbae Woosung, 34 Years Old, Draws Construction Firms’ Interest Even Before Committee Launch [Real Estate AtoZ]

Bangbae Woosung Aims to Establish Preparatory Committee by June Next Year
General Meeting in February to Select Urban Planning Company and Others

As the preparatory committee for the reconstruction of Bangbae Woosung Apartment in Seocho-gu, Seoul begins to take shape, major construction companies are drawing significant attention to the project. The committee is expected to be established next summer, and with Bangbae-dong being a traditional affluent neighborhood and the high business potential of Bangbae Woosung, various large construction firms are already showing keen interest.

According to the maintenance industry on December 16, the preparatory committee for the reconstruction of Bangbae Woosung Apartment will hold a residents’ general meeting in February next year to select an urban planning company. By June next year, the committee aims to be officially established, with procedures such as collecting consent forms underway.

Although the project is still in its early stages, competition among major construction companies is already intense. Construction companies such as Samsung C&T, Hyundai Engineering & Construction, and Daewoo Engineering & Construction have hung banners in the complex welcoming the launch of the preparatory committee. Seo Inwon, head of the preparatory committee for the Bangbae Woosung reconstruction, stated, “Construction companies that believe the project will progress quickly are expressing interest and reaching out.” He also noted that more than 300 residents are participating in the community chat room, demonstrating strong solidarity.

The project’s profitability is also considered relatively high. If the area is rezoned as a Type 3 General Residential Area or a Semi-Residential Area after reconstruction, the number of households could increase to about 900. The preparatory committee expects the maximum building height to be around 35 to 40 stories. The current complex was completed in 1991, consisting of nine 12-story buildings (468 households). It is located in a prime area with access to subway Lines 2 and 4, and currently has a floor area ratio of 222%.

The Bangbae-dong area is recognized as a traditional affluent district in Seocho-gu, featuring well-established school districts, large apartment complexes, and clusters of single-family and townhouse residences. The local skyline is changing with the creation of new large-scale apartment complexes, such as Raemian One Perla (Bangbae District 6), which began occupancy last month, and The H Bangbae (Bangbae District 5), scheduled for occupancy in September next year.

Driven by reconstruction expectations, prices have surged significantly. In September, an 84-square-meter unit in Bangbae Woosung sold for 1.92 billion won, and an 80-square-meter unit sold for 1.93 billion won, both setting record highs. Currently, the asking price for an 84-square-meter unit has jumped to 2.5 billion won, far exceeding recent transaction prices.

Jung Ho Hyun, research fellow at NH Investment & Securities, commented, “Due to the move-ins at Raemian One Perla and The H Bangbae, prices at other sites may also rise. Projects that progress quickly tend to carry a higher premium, and in speculative zones, succession of membership eligibility is restricted after the association is established, so it is important to carefully review the succession conditions.”