[Issue] Gwangcheon-dong Redevelopment Sales Price Set at 24.02 Million Won... Member Contributions Surge

Agreed on Construction Cost at 7.91 Million Won per 3.3m²
Additional Contribution Set at 298 Million Won
Final Decision to Be Made at General Meeting of Association Members

Aerial view of the redevelopment maintenance project in Gwangcheon-dong, Seo-gu, Gwangju. Provided by Hyundai Engineering & Construction

The largest housing redevelopment project in Gwangju, located in Gwangcheon-dong, Seo-gu, has finally reached a consensus on the general sales price and construction costs after prolonged negotiations. However, with the additional contributions from association members approaching 300 million won, a new dilemma has emerged: whether to forgo the high-end brand in order to reduce construction costs.

Agreed at 24.02 Million Won Per 3.3m²... Both Sides Make Concessions

According to the Gwangcheon-dong Housing Redevelopment and Maintenance Project Association and industry sources on March 3, the association and the construction contractor, Hyundai Engineering & Construction, recently agreed through the main contract negotiations to set the average general sales price at 24.02 million won per 3.3 square meters (excluding balcony expansion costs).

Initially, the association strongly demanded a price of at least 26.5 to 28.5 million won per 3.3 square meters to minimize the members' financial burden. In contrast, Hyundai Engineering & Construction, concerned about the prolonged local real estate downturn and the risk of unsold units, proposed a range of 20.9 to 24 million won per 3.3 square meters, leading to a standoff. Ultimately, both parties reached an agreement by finding common ground in preventing unsold units and securing project profitability.

If the agreement is finalized, units of up to 34 pyeong (approximately 112.2 square meters) will be priced at around 23 million won per 3.3 square meters, while larger units will be priced at around 27.5 million won per 3.3 square meters. This is similar to or slightly higher than the average sales price (about 23.46 million won per 3.3 square meters) for Lotte Castle Signature at Gwangju Jungang Park, which was offered in 2024. The actual construction cost was agreed at 7.91 million won per 3.3 square meters, with the total construction cost estimated at around 2.15 trillion won.

Contribution Approaching 300 Million Won... On the Verge of Giving Up 'The H'

On the 5th of last month, a notice reading 'No Entry to Dangerous Buildings' was posted on a wall in the redevelopment zone of Gwangcheon-dong, Seo-gu, Gwangju. This redevelopment zone is a project valued at approximately 3 trillion won, planned to include apartment buildings up to 45 stories high, ancillary facilities, parks, and to house about 5,000 households. Photo by Min Hyunki

The problem is that the increase in construction costs, triggered by rising raw material prices and labor costs, has directly translated into a massive financial burden for association members. The construction cost per 3.3 square meters, which was about 5.88 million won under the provisional contract in 2023, has risen to 7.91 million won, causing the additional contribution per member to jump from 167 million won to 298 million won.

As a last resort to lower the members' financial burden, Hyundai Engineering & Construction officially requested that, instead of the originally promised high-end brand "The H," another premium brand be considered as an agenda item at the general meeting of association members. According to Hyundai Engineering & Construction, even if the current design and construction standards remain unchanged, switching the brand alone could significantly reduce both the total construction cost and members' contributions.

An official from the association stated, "So far, we have never reviewed or discussed other brands besides The H, but to clearly gauge the members' opinions, we plan to hold a general meeting soon," adding, "At the meeting, we will hold a final vote to decide whether to accept the proposed sales price and construction cost agreement, as well as whether to approve the alternative premium brand."

The Largest Project in Gwangju with 5,000 Households... Full-Scale Sales Next Year

The Gwangcheon-dong redevelopment project, with a project cost alone in the 3 trillion won range, is a large-scale maintenance project that will develop approximately 425,851 square meters in Gwangcheon-dong, Seo-gu, Gwangju into a residential area with over 5,000 apartment units, auxiliary facilities, and parks, with buildings up to 45 stories high. The plan also includes remodeling one building of the Citizens' Apartment, which was operated by Deulbul Night School during the 5·18 Democratization Movement, to preserve it as a historical space.

The relocation of residents has already been completed. The demolition work, which was originally scheduled to begin in November last year, was delayed due to the prolonged construction cost negotiations but is expected to resume after this month. General sales are expected to begin between the end of next year and early 2028, with final completion anticipated between the end of 2029 and early 2030.

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