"Inquiries to buy have increased by at least 1.5 times compared with normal times. Homeowners have withdrawn all the homes they had put up for sale."
4th, the head of A Real Estate Agency near Imae-dong, Bundang-gu, Seongnam, said, "Even if we show a home to a buyer and they say they will sign, the price is rising by 50 million won on the spot." After the Ministry of National Defense recently changed the flight safety zone near Seoul Air Base, a military airport, easing height restrictions for some apartments in Yatap and Imae-dong, inquiries looking for listings at nearby real estate agencies have jumped. A banner reading "Long-cherished wish, height restriction eased at last" hung over the intersection road that runs through Yatap-dong and Imae-dong.
Most areas of Seongnam are divided into flight safety zones 1 to 6, based on the runway of Seoul Air Base, and are subject to building height restrictions. However, as the Ministry of National Defense recently changed parts of Yatap and Imae-dong from flight safety zone 2 to zone 6, regulations applied to apartment complexes in these areas have been eased. The places that directly benefit from the easing are 11 apartment complexes, including Tapmaeul Seonkyung and Daewoo, Areummaeul Taeyoung, Kunyoung, Hansung, Doosan, Samho, Punglim, Seonkyung, Hyosung, and Imaechon Jinheung.
With the allowable building height raised, these complexes can add 5 to 21 more floors than before when they undergo reconstruction. Tapmaeul Seonkyung Apartments (16 stories) are expected to be rebuilt to more than 20 stories, and Areummaeul Hyosung Apartments (25 stories) to more than 40 stories. If so, the volume available for general sale would increase, easing the burden on association members as project profitability improves.
For some apartments, there are buildings within the same complex where the flight safety zone has not changed, but nearby real estate agencies say this is unlikely to significantly affect reconstruction profitability. A representative of B Real Estate Agency in Imae-dong noted, "Even within the same complex, allowable building heights can differ by building, but reconstruction is not carried out by individual buildings, so it will not have a huge impact on overall profitability."
As most of the complexes with eased height limits have reached the age for reconstruction, inquiries to buy are rising sharply. The head of C Real Estate Agency in Yatap-dong said, "Transactions of Bundang apartments designated as a leading district are surging, and it seems this momentum has spread to Yatap and Imae-dong over the past month due to the height easing issue," adding, "Because of the reconstruction angle, inquiries and deals are focused on larger units."
As purchase inquiries increase, homeowners are also pulling listings. The head of B Real Estate Agency said, "There are many cases where owners withdraw listings or even show the home but do not provide account details," adding, "Home prices are showing signs of overheating in a short period, which is concerning."
In the case of Tapmaeul Seonkyung Apartments, a 37-pyeong unit (exclusive area 101㎡) transacted for 1.26 billion won in Apr., but last month a transaction was completed at 1.35 billion won. A 32-pyeong unit (exclusive area 83㎡) in the same complex also recorded an actual transaction last month at 1.29 billion won, surpassing the previous month's record high of 1.25 billion won.
Areummaeul Doosan Samho likewise saw a 37-pyeong unit (exclusive area 101㎡) transact for 1.6 billion won in Jul., but last month the price jumped to 1.69 billion won, nearly a 100 million won increase. A 31-pyeong unit (exclusive area 84㎡) traded for 1.3 billion won in Jun., but last month a deal was signed at 1.44 billion won. The current highest asking price among 31-pyeong listings has reached the 1.6 billion won range. For a 47-pyeong unit (exclusive area 132㎡) in this complex, recent sales were in the 1.6 billion won range, but there are listings asking over 2 billion won.
However, it should be noted that there is nothing yet that makes the reconstruction project immediately tangible. The government may also cap the annual volume of designated maintenance project zones in Bundang among the first-phase new towns, citing a lack of capacity to absorb relocation demand, which could be a burden.
Some of the beneficiary complexes displayed banners recruiting reconstruction resident representatives, signaling that the project is in its early stages. The head of A Real Estate Agency said, "As the first-phase new town reconstruction method has shifted to a resident proposal format, we now have to prepare everything down to how the reconstruction will actually be carried out, so it may take some time," adding, "We expect preparation time will be needed at least through the first half of next year."
However, some analysts say that if the reconstruction project proceeds through resident proposals, it can gain sufficient speed with support from the local government. The head of C Real Estate Agency said, "With the shift this year from designating leading districts to a resident proposal method for maintenance, Yatap and Imae-dong may have moved in later than other zones within Bundang New Town, but couldn't the reconstruction project actually proceed faster?"