Hyundai E&C unveiled the new housing business "The New House (THE NEW HOUSE)" on the 6th. The project upgrades the living environment of apartments to a "new-build level" without relocating residents, and the construction cost per unit is expected to be under 100 million won.
Hyundai E&C held a media showcase on the morning of the 6th at "THE H Gallery" in Sinsa-dong, Seoul, and announced the launch of "The New House," the rationale behind it, and future plans. "The New House" was introduced as a "new residential innovation project" that comprehensively improves aging apartments.
Lee In-gi, head of Hyundai E&C's dwellings business division, said, "Builders construct apartments with a 50-year lifespan in mind, but residents' life patterns are changing too quickly," and added, "We wanted to present new possibilities for existing, older apartments, which is why we started this project."
The core of "The New House" is to comprehensively improve apartments while residents continue living there without relocation. Hyundai E&C embedded the core values (NEW) in the name "THE NEW HOUSE": ▲ No move ▲ Easy process ▲ Within two years.
"The New House" goes beyond simple dwellings repair and maintenance to target complex-level upgrades to new-build standards through space utilization, including not only enhancements to exteriors, landscaping, and amenities, but also expanding community facilities by finding idle spaces. For example, unused underground pit spaces or idle surface lots would be reconfigured into community facilities or convenience spaces.
Hyundai E&C selected "Hillstate Complex 2" in Samseong-dong, Gangnam District, as the first site for "The New House." When it was completed in 2008, it was among the top-tier apartments representing Gangnam's core area, but over time, limitations in some facilities emerged, and the price gap with nearby new-build apartments began to widen.
The 84-square-meter exclusive unit at Samseong Hillstate Complex 2 hit a record high of 3.54 billion won (12th floor) on Jun. 25 and is trading between 3.3 billion and 3.5 billion won. A unit of the same size at the nearby new-build "Raemian La Classe" set a reported high of 4.325 billion won on Oct. 14. That apartment was completed in 2021. The sale prices of the two apartments, whose locations are nearly identical, differ by about 800 million won.
Hyundai E&C plans to propose design, construction costs, and financing plans to residents of Samseong Hillstate Complex 2 within the year. The company aims to start construction at year-end and complete it within two years.
Hyundai E&C has tentatively decided on "Suwon Shinmyeong Apartment" as the second site for "The New House." Although it won the site as a remodeling project, it judged that switching the project would be more advantageous given other conditions and is discussing the matter with the association. In addition, apartments completed in the 2000s, as well as first-phase new towns and apartments in regional areas, could also be candidates for "The New House."
Lee Hyeong-deok, head of Hyundai E&C's renewal new business team, said, "If apartments built by other brands meet Hillstate product standards, brand changes are possible," adding, "However, the 'THE H' brand will be applied with very strict and limited criteria."
Hyundai E&C explained that when aging apartments face practical hurdles such as various regulations and cost-sharing, making it difficult to pursue residential improvement projects, this initiative could offer a new solution. For apartments from the late 1990s to early 2000s without underground parking, the company plans to deploy "parking robots" developed by Hyundai WIA to significantly increase the number of parking spaces.
The company believes that if residential areas and construction zones are separated and built in phases while residents do not relocate, living-environment improvements can proceed in parallel. Hyundai E&C plans to analyze resident movement paths and establish an optimized construction process that can enhance safety and reduce inconvenience.
Another strength is that it can proceed faster than other projects such as redevelopment and remodeling. Depending on whether the floor area ratio changes, "The New House" will be governed by either the "Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents of Multi-Family Housing" or the "Housing Act." If governed by the multi-family housing management law, it can proceed through the residents' representative council. The "Housing Act" is pursued through an association model. Because demolition work is not included, unnecessary procedures can be minimized.
Hyundai E&C applied a "subscription" model to the payment method for construction costs. Similar to existing maintenance projects, residents would pay part of the deposit at contract, but the amounts corresponding to the interim and final payments would be paid monthly. The company has signed MOUs with Kiwoom Securities, Korea Investment & Securities, and Hana Bank, and is designing financial products to enable payment through those firms' subscription programs.
Division head Lee In-gi said, "We have also given a lot of thought to resident safety during construction," adding, "Along with resident movement and construction logistics, by applying modular construction methods, we can both shorten the construction period and ensure safety."