Hyundai E&C will intensively pursue a 'residential environment improvement new business' to enhance the living quality and asset value of aging apartment complexes without relocating residents.
Hyundai E&C announced on the 25th that it signed a memorandum of understanding for a 'new business' to establish the Samsung-dong Hillstate Complex 2 and a premium residential complex.
Hyundai E&C's new project aims to renew aging complexes without relocating residents, achieving new construction-level living quality and premium value. It focuses on practically improving living conditions in complexes where reconstruction or expansion remodeling is difficult due to real-world conditions.
According to a Hyundai E&C official, this can serve as a realistic alternative for complexes struggling to move forward with existing maintenance projects due to various regulations such as reconstruction timelines, safety inspection requirements, and high contribution fees.
The Samsung-dong Hillstate Complex 2, where the agreement was signed, is a large complex completed 18 years ago. It shares common issues seen in aging complexes, such as parking lot leaks, outdated facilities, and a lack of community spaces. Though there is a price gap with nearby new complexes due to the limitations of aging complexes, it is expected that this gap can be significantly alleviated once the major renovation new business is completed. Hyundai E&C is preparing a differentiated design to elevate the previously lacking living conditions in the complex.
The scope of the project is classified into common areas and individual units. The common areas will not only involve upgrades such as the exterior walls, main entrance, landscaping, and community spaces but also apply advanced technology to systems such as underground parking, electric vehicle fire prevention facilities, and smart access control, allowing residents to remain without relocating.
Interior work on individual units will include soundproofing structures, high-performance windows, systems based on high-tech internet (IoT), and energy-saving facilities, applied only to units where residents desire it.
The simplified and stable project process is also a strength. Existing housing environment improvement projects, such as reconstruction and remodeling, are subject to the 'Urban and Residential Environment Maintenance Act' and the 'Housing Act,' which take a long time.
However, the new business can proceed under the 'Apartment Management Act.' The resident representatives will implement the project, while Hyundai E&C will directly handle the entire process, including design, administration, construction, and post-management (after-service). A multilateral cooperation system among the two businesses and the local government will allow for stable and rapid project advancement.
By minimizing the demolition of existing buildings, the new business generates less construction waste compared to reconstruction, and because it can proceed without relocating residents, the stability of current residents' living conditions and the sense of community in the area can be continuously maintained. This aligns with the sustainable strategy that Hyundai E&C presented during its CEO Investor Day in March.
Through this business, Hyundai E&C plans to not only enhance resident satisfaction but also contribute to the overall increase in the value of the local complex. By closing the price gap with new apartments, the plan aims to redefine the brand of aging complexes in the old downtown, stabilize prices in the nearby real estate market, and improve urban aesthetics, inducing multifaceted ripple effects.
A Hyundai E&C official noted, 'This project is a new residential solution that not only addresses the limitations of continuously increasing aging apartments but also enhances the quality of space and market competitiveness,' adding, 'We plan to continue expanding differentiated projects that elevate the quality of life for customers based on the trust and technical capabilities of the Hillstate brand.'