The enthusiasm for redevelopment and maintenance projects in the Gangnam area of Seoul is spreading to aging residential areas in Sadang-dong, Dongjak-gu. Both the Sadang Hyundai Apartment and the Daelim Apartment are moving forward with reconstruction plans, while a trust redevelopment project in the area around Namsan Station is gaining momentum.
According to the real estate industry on the 23rd, the Sadang Hyundai Apartment Reconstruction Promotion Preparation Committee (Reconstruction Committee) is collecting consent forms from residents for the establishment of a reconstruction promotion committee (Promotion Committee) until August 18, prior to the formation of the reconstruction union.
The Sadang Hyundai Apartment, completed in 1991, is a complex consisting of three buildings with a maximum height of 15 floors and 346 units. It has qualified for reconstruction after more than 30 years since its completion, but the project has been continually delayed due to complex safety inspection procedures and the need for approval for the establishment of the union.
The Dongjak-gu Office held a resident briefing session last year, which helped establish a consensus among residents on the necessity of reconstruction, leading to the initiation of the preparation process for reconstruction this year.
The Daelim Apartment, located near the Sadang Hyundai Apartment, is also entering into serious discussions regarding reconstruction as it has exceeded 30 years since its completion. The Daelim Apartment consists of 12 buildings, completed in 1990, with a maximum height of 15 floors and 1,152 units. After passing a preliminary safety inspection for the reconstruction project last September, it is currently preparing for the establishment of a union. A resident briefing session is scheduled for the 26th to collect expenses for the reconstruction diagnosis.
The redevelopment project around Namsan Station is also picking up speed. This project involves redeveloping over 20,000 square meters of land in the Sadang-dong area of Dongjak-gu to build 519 residential units and 54 officetels, with six underground floors and up to 37 above-ground floors. It was designated as an urban revitalization redevelopment area last January and is the first redevelopment project in Dongjak-gu to utilize the trust method. In March, it gained the consent of over 75% of landowners and was designated as a maintenance area, with KOREIT appointed as the project implementer about two months later.
The real estate sector evaluates that Sadang-dong in Dongjak-gu has high business feasibility due to its excellent accessibility to Gangnam. The area is supported by a robust transportation network, including connections at Sadang Station (where Seoul Subway Lines 2 and 4 intersect), the transfer station at Isu Station for Lines 4 and 7, and Namsan Station on Line 7.
Kwon Dae-jung, a professor in the Department of Real Estate at Sogang University, noted, "While there are no large development projects in the Sadang-dong area, it is adjacent to Bangbae-dong in Seocho-gu, which provides good accessibility to Gangnam." He added, "A project to create a tunnel that will take the road from the frequently congested Bangbae Entrance and Isu Intersection to Gwangju is currently in the design phase, and once this tunnel is opened, it will further improve transportation convenience for local residents."
However, as the maintenance project is still in the early stages and the rent(expense) is high, it seems that it will take a considerable amount of time for the entire area of Sadang-dong to be developed, except for certain complexes that can secure business feasibility.
Go Jun-seok, a professor at Yonsei University's Sangnam Business School, said, "Sadang-dong in Dongjak-gu is right next to Bangbae-dong in Seocho-gu, so it has good accessibility to Gangnam, but it will not be easy to align with Gangnam in a short time through maintenance projects."
Professor Go added, "The rent(expense) along the area extending from Namsan Station to Chongshin University Entrance, Dongjak National Cemetery, and Heuksuk-dong has a steep incline, making it difficult to secure business feasibility necessary for maintenance projects. Since the reconstruction of the Daelim and Hyundai Apartments and the redevelopment of Namsan Station are all in the early stages of the project, it will likely take a considerable amount of time to complete the maintenance projects."