Redevelopment projects in the aging residential areas around Mok-dong and Sinjeong-dong in Yangcheon-gu, Seoul, are gaining momentum. Centered on the Seoul Metropolitan Government and Yangcheon-gu, a district-level local government, procedures are underway to designate redevelopment zones and finalize redevelopment plans, while Korea Land & Housing Corporation (LH) is promoting a public redevelopment project. There is also a project for which Samsung C&T has secured construction rights and is set to sign a construction contract. Because the areas are close to Mok-dong New Town complexes 1 to 14, the Mok-dong living sphere is expected to expand after redevelopment.
According to the redevelopment industry on the 3rd, LH plans to propose to the Ministry of Land, Infrastructure and Transport the designation of the "urban public housing complex district near Gangseo High School in Mok 4-dong, Seoul" within this month. The urban public housing complex project (urban complex project) is a public redevelopment initiative that offers floor area ratio increases and shorter project timelines for areas such as station areas, quasi-industrial zones, and low-rise residential neighborhoods where private redevelopment is difficult due to low profitability. An LH official said, "We plan to apply for district designation to the Ministry of Land, Infrastructure and Transport (MOLIT), which holds the authority to designate the district, this month," adding, "Barring major variables, the district designation will be completed within the year."
The target site is a low-rise residential area around 772-1 Mok-dong, Yangcheon-gu. The 190,317-square-meter (about 57,571-pyeong) site is close to Mok-dong New Town complexes 1 to 4, Mok-dong Station on Seoul Subway Line No. 5, Gangseo High School, and Yeongdo Middle School. Gangseo High School is among the top schools in Mok-dong. LH plans to turn this area, which is densely packed with single-family homes, into a large-scale apartment complex with 4,206 households by applying a floor area ratio of 303.6%.
Kim Hak-ryeol, head of Smart Tube Real Estate Research Institute, said, "Because it is in Mok-dong adjacent to a prestigious school district, the location is extremely favorable for the business sites," adding, "The key to success will be how much support the land and other owners give the urban public housing complex project led by LH so it can proceed quickly."
The area around 922 Sinjeong 4-dong is pushing to designate a redevelopment zone and establish a redevelopment plan. To that end, Yangcheon-gu is recruiting a resident participation group composed of land and other owners through the 4th. An official from Yangcheon-gu explained, "Through the resident participation group, we will gather the opinions of land and other owners and proceed with designating the redevelopment zone and the redevelopment plan."
This area is located along Omok-ro and near Sinjeong Station on Seoul Subway Line No. 5. It is an aging, low-rise residential area with a high proportion of semi-basement dwellings, and on Apr. the Seoul Metropolitan Government selected it as a candidate site for the rapid integrated planning (Shintong planning) housing redevelopment program. The area is 84,186.6 square meters (about 25,466 pyeong).
Shim Hyeong-seok, head of the Udabang Research Institute (professor at IAU in the U.S.), said, "Because it is close to Sinjeong Station, it has good accessibility to Mok-dong New Town complexes, and as Mok-dong reconstruction proceeds, if redevelopment is carried out together, the post-redevelopment value will rise significantly."
The "housing maintenance-type redevelopment project around 1152 Sinjeong-dong" is also picking up speed. It is a project to redevelop 44,083 square meters (about 13,335 pyeong). As the final business sites in Sinjeong New Town, it was selected as a target for Seoul's rapid integrated planning in 2021, and with the redevelopment plan finalized in Sept. 2023, it was designated as a redevelopment zone. In June, after receiving approval to establish a redevelopment association, Samsung C&T was selected as the builder in July.
Samsung C&T plans to develop the area with a total of 14 buildings, ranging from four floors underground to 15 floors above ground, comprising 971 households and auxiliary community facilities. The complex will be named "Mok-dong Raemian Tramezon." A Samsung C&T official said, "We plan to sign a construction contract with the association within this month."
Noh Si-tae, a real estate specialist at KB Kookmin Bank's WM Promotion Department, said, "The key to how much the future value of the Sinjeong-dong redevelopment area will rise is accessibility to the Mok-dong New Town complexes," adding, "Areas relatively close to the New Town complexes will be able to enjoy the broader Mok-dong living sphere, and their value will rise significantly after the redevelopment is completed."