The Daekyo Apartment in Yeouido, Yeongdeungpo District, along with other major redevelopment complexes such as the Shibeom Apartment, is accelerating its project as it resolves conflicts and progresses through administrative procedures.
According to the urban development industry on the 16th, the Daekyo Apartment in Yeouido recently passed a comprehensive review involving five categories (architecture, landscape, traffic, education, and environmental impact assessment) held by the Seoul Metropolitan Government. The Daekyo Apartment faced difficulties in advancing the project due to delays in the environmental impact assessment caused by sunlight rights conflicts with nearby Jangmi Apartment and Samboo Apartment.
Subsequently, a public hearing was held in October last year, and in December of the same year, the plan was revised by removing two planned 15-story buildings near Jangmi Apartment and building the existing four buildings taller. The design plan was changed to move the complex 10 meters inward near Samboo Apartment. As the project progressed rapidly afterward, a construction company is set to be selected in the third quarter. According to the integrated review plan, the redevelopment will consist of a complex with a maximum of 49 floors and 912 dwellings across four buildings.
The Shibeom Apartment, designated as the first integrated planning complex, had not progressed for about a year but was restarted last month. The maintenance plan, which passed the Seoul Metropolitan Government review in October 2023, stipulated a maximum of 65 floors and 2,500 dwellings, granting an incentive for a maximum floor area ratio of 400% in exchange for the installation of a day care center as a public contribution facility.
This led to conflicts, and as the Shibeom Apartment side ultimately decided to accept the conditions, the 'Yeouido Shibeom Apartment Redevelopment Maintenance District and Maintenance Plan Amendment' was notified on the 13th of last month.
The Hanyang Apartment, which is the first redevelopment complex in Yeouido, also completed the selection of Hyundai E&C as the construction company after passing the integrated review through rapid integrated planning. The Gongjak Apartment also confirmed Daewoo E&C as the construction company.
The Seoul Metropolitan Government plans to lower the mandatory non-residential facility ratio applicable to commercial and semi-residential areas from the existing 20% to 10%. Yeouido is anticipated to benefit from regulatory relaxation due to many complexes located in commercial and semi-residential areas. Some complexes are considering minimizing commercial facilities and increasing the proportion of dwellings in line with the regulatory relaxation. In fact, it is reported that the reconstruction association of the Yeouido Plaza Apartment buildings 1 and 2 is considering raising the dwelling proportion to a maximum of 100% during redevelopment.
As expectations for redevelopment grow, demand has surged in the Yeouido real estate market, leading to a decrease in available listings. According to real estate big data company Asil (Apartment Real Transaction Price), as of the 14th, the number of apartment listings in Yeouido-dong, Yeongdeungpo District, stood at 293, down 57.6% from a year ago (690 listings), marking the largest decline in Seoul.
An official from a real estate agency in Yeouido-dong noted, 'There is an expectation that the land transaction permission system will be lifted next year as it approaches the five-year mark. With the acceleration of maintenance projects, some homeowners are withdrawing listings, hoping to observe price increases.' They added, 'The price for a 79㎡ unit in the Shibeom Apartment was around 2.2 billion won, but there are now hardly any listings below 2.4 billion won.'
Experts noted that although the area has been excluded from the land transaction permission system, the strengths of the location suggest that the price increase trend will continue for a while. Ko Joon-seok, a professor at Yonsei University's Sangnam Business School, stated, 'Yeouido has many high-income residents and is an area with jobs. Although it is estimated that complexes currently under maintenance will take about 10 to 15 years to move in, demand remains steady. The advantage of being along the Han River and the well-established transportation infrastructure also indicate that high prices are likely to be maintained for some time.'
Seo Jin-hyung, a professor in real estate law at Kwangwoon University, said, 'Overall in Seoul, the supply shortage due to reductions in redevelopment and reconstruction complexes has concentrated demand in Yeouido and influenced price increases. Especially as maintenance project sites become more visible during the progression, risks diminish and prices rise. As it is one of the key areas in Seoul, the continuation of the maintenance projects will lead to ongoing price increases.'