The 'Hillstate Medialle' (Daecho 1 District Redevelopment Project), which is being developed as a large complex with 2,500 dwellings in Daecho-dong, Eunpyeong-gu, Seoul, will begin general sales in the first half of the year. Nearly 500 general sale units will be offered in three sizes: 51㎡, 59㎡, and 74㎡, with the sale price expected to be set around 40 million won per 3.3㎡. Given that this is a large complex with over 2,000 dwellings and its proximity to the Yeonsinnae Station on the recently opened Seoul Metropolitan Rapid Transit (GTX)-A line, interest in the general sale is expected to be high.
According to the construction industry on the 12th, negotiations on construction costs for the 'Daecho 1 District Redevelopment Project' in Daecho-dong, Eunpyeong-gu, Seoul, have entered the final stages. This project, covering an area of 111,665.3㎡ at sites 88 and 89 in Daecho-dong, is one of the largest redevelopment projects in the northern part of the city, comprising four underground floors and 25 above-ground floors with a total of 28 buildings and 2,451 dwellings. However, due to ongoing conflicts over construction costs between the construction company Hyundai E&C and the Daecho 1 District Housing Redevelopment Maintenance Business Association (hereinafter referred to as the Association), negotiations for the construction cost are still ongoing.
After selecting the construction company in 2017 and starting construction in October 2022, negotiations to reassess construction costs are underway due to design changes and delays in sales caused by conflicts within the association's executive committee. Both parties have requested the Seoul Housing and Communities Corporation (SH) to verify the construction costs. Hyundai E&C has requested an increase of the original construction cost from 580.653 billion won to 957.02 billion won. An SH official stated, 'The verification results of SH's construction costs will be notified to both parties in mid-month,' adding that 'there is no obligation to accept these conditions, but there is a high possibility that they will accept the verification results requested by both sides.'
Hyundai E&C and the Association have already reached a preliminary agreement on the construction cost per 3.3㎡ based on the interim verification results received from SH last month. Once the final verification results are published in mid-month, they plan to rewrite the construction cost contract accordingly. An official from the association noted, 'We have reached a rough agreement, but there are still some details that are not settled,' adding that 'after completing negotiations on construction costs, we plan to hold a general meeting of the association members to decide on the agenda and finalize the construction cost change contract.' This official also mentioned, 'General sales are expected to take place within the first half of the year.'
The market forecasts that the selling price for general sales will be around 40 million won per 3.3㎡. In this case, the selling price for a 74㎡ dwelling would be in the mid-1 billion won range. For example, in Jangwi-dong, Seongbuk-gu, the 'Prugio Radius Park' (based on a size of 84㎡) has been sold in the 1.2 billion won range, while the 'Changyeonggung Lotte Castle Signature' in Samseon-dong, Seongbuk-gu, has been sold in the 1.3 billion won range.
Real estate experts anticipate that the sale will be successful due to the new large complex and favorable transportation conditions. The complex is located between the Yeokchon Station and Bulkang Station on Seoul Subway Line 6, allowing access to both stations within a 10-minute walk. Additionally, within a 1 km distance, the Yeonsinnae Station, where the GTX-A line was recently opened, is located.
Park Won-gap, a senior real estate expert at KB Kookmin Bank, remarked, 'There is a continuing preference for new constructions and large complexes, and since this complex can benefit from the transportation improvements from GTX-A, if the selling price is not too high, it should perform well in the general sales.' Park Ji-min, the head of the Wolyong Subscription Research Institute, stated, 'Although Eunpyeong-gu's popularity has somewhat cooled down in the sales market, the complex is being launched amid continued development news, such as the introduction of GTX-A, so we expect it to perform well.' Park also added, 'Many major complexes near Nokbeon Station on Line 3 were completed in 2018, with market prices around 1.2 to 1.3 billion won, so if it sells at a similar or lower price, Hillstate Medialle, which will be completed next year, can leverage the advantages of being newly built.'