The representative of a real estate agency in Jayang 4-dong said, "While many neighborhoods with older dwellings are sluggish in their projects, Jayang 4-dong is relatively fast-paced. Prices have already risen significantly, but since it's by the Han River, residents are very hopeful."
On the afternoon of the 16th, after walking about 5 minutes from Jayang Station, which is on Line 7 of the Seoul Subway and adjacent to Ttukseom Hangang Park, Jayang 4-dong came into view. Banners congratulating the decision on the maintenance plan and the designation of the maintenance area were hung throughout the A district of Jayang 4-dong.
Although it is located right by the Han River, the residential environment was poor. The non-apartment dwellings, such as villas, were aged, and on this rainy day, the streets were old enough that puddles formed in various locations.
A resident named Park (55), whom I met at a real estate agency, said, "Similar to nearby apartment complexes, the villas here are older. However, the progress is relatively quick, and it is expected that a consortium will be established next year, which has made residents hopeful."
A representative from a real estate agency in Jayang-dong noted, "This area is known to be of interest to the Seoul mayor, and the speed of project implementation is fast. The location is so good that residents have high expectations," adding, "Although there has been a slight slowdown since the announcement of the loan regulations on June 27, there are still many inquiries about investments."
The area around Jayang-dong in Gwangjin-gu is progressing in maintenance projects with the administrative and financial support of the Seoul government. Despite being undervalued due to aging dwellings and an unclear location, demand for investment has increased as the areas designated for land transaction permission have expanded to include Gangnam and Yongsan, leading to price increases and growing expectations for revitalization in the real estate market.
According to those in the maintenance industry, the Seoul government has announced administrative support for the maintenance project in Jayang 4-dong as part of plans to increase housing supply along the Han River. The A district of Jayang 4-dong, covering an area of 139,130 square meters, is adjacent to the Seongsu Strategic Maintenance Area 4 but has a mix of aging single-family and multi-family dwellings, creating a significant need for rehabilitation.
Since being selected as a candidate site for the rapid integrated planning of the city in December 2022, Gwangjin-gu has continued to provide administrative support. Following approval from the Seoul city's urban planning review on the 9th, the maintenance plan was officially announced. With the zoning being upgraded from general residential areas of type 1 and 2 to type 3, a large-scale apartment complex with a maximum of 49 floors and 2,999 units is expected to be built.
This is noted as the first case where the 'direct establishment of principal associations' and 'relaxation of local approval rates for subsidies' simultaneously applied. The process has been simplified to allow for the direct establishment of an association without a steering committee, and the subsidy eligibility criterion for resident approval rates has been drastically eased from 75% to 50%. Jayang 4-dong has secured a resident approval rate of 57%, allowing it to benefit from the improved system, anticipated to shorten the timeframe by at least six months, making it possible to establish the association by the first half of next year.
Though the existing floor area ratio was relatively high, making business viability lacking, the application of 'recognized current floor area ratio' and 'viability correction coefficient' introduced for the first time in the 2030 city and residential environment maintenance basic plan has improved business viability.
Seoul Mayor Oh Se-hoon visited the site in the A district of Jayang 4-dong on the 14th and held a meeting with residents. He stated that he would "increase the actual supply speed by abolishing regulations."
After walking an additional 15 minutes from Jayang Station, I could also see the redevelopment maintenance project in Jayang 7 district. Passing by Jayang Hyundai Home Town, Jayang-dong Samsung Apartments, and Jayang Woosung 1 and 2, I found that the proposed redevelopment in Jayang 7 district was concentrated in areas where the villas were located. This area, too, is accelerating its maintenance project, having been designated as a maintenance area in 2018, receiving approval for association establishment in 2021 and selecting DL E&C as the construction company in October 2023.
At a general meeting in April, a plan to incorporate about 10,000 square meters of land along the eastern road was passed, and the procedure for changing the maintenance plan is currently in progress. If the change is implemented, the zoning will be raised to a type 3 general residential area, increasing the total saleable area by nearly 30%. As a result, the number of units expected to expand from the existing 917 units to over 1,200.
Additionally, Jayang 1 and 2 are promoting small-scale redevelopment in the 'Moa Town' method. The Moa Town method is considered to have the advantage of rapid project implementation, making it expected that maintenance projects will proceed quickly. In particular, Jayang 1 and 2 are evaluated as having high business viability due to their proximity to the Han River and being in a station area.
As such, the area around Jayang-dong appears to attract additional investment demand as the maintenance projects gain momentum through the administrative and financial support of the Seoul government. Located in a niche area between Jamsil and Seongsu, and having avoided designation as a land transaction permission area, investment inflow has recently increased. According to the big data platform Asil, apartment listings in Jayang-dong decreased from 545 to 462 over the past month, marking a 15.3% drop.
However, even if the speed of project implementation is fast, it is expected to take several years to complete the maintenance project, and there are projections that market activation may be difficult due to recent price increases. A representative from a real estate agency in Jayang-dong stated, "Recently, listings have decreased significantly, and investment demand has increased, resulting in almost no properties coming to market," adding, "Even when they do appear, prices are high, and after the loan regulations on June 27, gap investments have become difficult, leading the market to quiet down again."
Professor Ko Jun-seok, the head of the Sangnam Management Institute at Yonsei University, noted, "Since Jayang 4-dong A district is adjacent to Seongsu-dong and located in the Han River belt area, if the maintenance project is completed, the market is likely to activate," but added, "However, since the maintenance project is only just beginning to gain momentum, more time appears to be needed for investments."