The representative of a real estate agency in Munrae-dong said, "Inquiries have increased significantly as the redevelopment project has started to pick up speed. The area of Munrae-dong 4-ga is on hold for buyers."
Since the Seoul City eased restrictions on the development of semi-industrial areas in March, Munrae-dong in Yeongdeungpo District has been cited as one of the biggest beneficiaries, accelerating redevelopment and reconstruction. The real estate market in this area is bustling, with recent actual transaction prices and asking prices rising simultaneously.
The area around Munrae-dong 3-ga and 4-ga, visited on the 11th, was mixed with newly constructed high-rise apartments, older low-rise apartments, and single-story ironworks. The surrounding real estate offices had signs indicating consultations about the redevelopment of Munrae-dong 4-ga.
A representative from a real estate agency in Munrae-dong B noted, "As the atmosphere regarding the redevelopment of Munrae-dong 4-ga and the reconstruction of Gukhwa Apartment continues to receive height increases, residents' expectations are high," adding, "Asking prices have risen significantly. Actual transaction prices have recovered to levels similar to the peak period."
According to the maintenance industry, Gukhwa Apartment in Munrae-dong was originally planned for 354 units over 29 floors in the 2022 maintenance plan, but the redevelopment plan has been revised to accommodate 662 units over 42 floors, reflecting the height increase approved by the city of Seoul. The revised proposal is awaiting review by the Yeongdeungpo District Urban Planning Committee.
The redevelopment area of Munrae-dong 4-ga near Gukhwa Apartment also changed its maintenance plan. In April, the first bidding for construction companies was held, but the requirement to include 1,114 apartments and a Knowledge Industry Complex with 1,041 units in the semi-industrial area redevelopment led to no construction firms participating, resulting in the bidding being unsuccessful.
Subsequently, the plan was modified to increase the number of apartments to 2,358 while reducing the total floor area of the Knowledge Industry Complex by half. The second bidding attracted a consortium of Samsung C&T and Daewoo E&C. The bidding deadline is September 15.
In addition, Jinjoo Apartment (160 units) has already completed relocation and is set to be demolished soon. POSCO E&C is in charge of construction for 'The Sharp Le Prive,' which is planned to be a maximum of 21 floors, with six buildings and 324 units. The nearby Namseong Apartment (390 units) is awaiting management disposition approval. After receiving project approval in 2021, Hanwha's construction division was selected as the contractor in 2023.
The real estate maintenance industry in Munrae-dong is thriving because, in April last year, the Seoul City partially eased regulations on semi-industrial areas through the "Complete Revitalization Plan for the Southwestern Region." Previously, regulations limited the floor area ratio to a maximum of 250%, hindering the business feasibility of redevelopment and reconstruction, but the regulatory easing increased the ratio to 400%.
The special measure taken by Seoul City arose as criticisms regarding the poor business feasibility of redevelopment projects in semi-industrial areas, including Munrae-dong, Yangpyeong-dong, and Dangsan-dong, continued to delay progress. Yeongdeungpo District has semi-industrial areas that account for about 25% of the total area. Although located close to the recently continued high-priced transactions in Yeouido and Mokdong, the low development density and the unattractiveness of the semi-industrial area led to a slower development speed and undervaluation.
Park Mo (61), a resident met in an apartment complex in Munrae-dong 3-ga, said, "I had reduced expectations due to the lack of speed in the redevelopment project, but these days, the atmosphere seems different."