Redevelopment projects, which had drawn attention mainly around southern Seoul's Gangnam area, are stretching in northern Seoul as well. Oh Se-hoon, the Seoul mayor, is lending momentum by touting a "golden age for northern Seoul" in the new year, and construction companies are also waging fierce bidding wars.
According to the redevelopment industry on the 7th, the Seongsan-Siyeong Apt. reconstruction association establishment promotion committee received approval for association establishment from Mapo District Office on the 22nd of last month. It came nine months after the committee won approval in Mar. Once the association establishment is approved, the reconstruction project can be considered on track. Completed in 1986, Seongsan-Siyeong Apt. is a large complex with 14 stories across 33 buildings and 3,710 households. Through reconstruction, it will change to as high as 30 stories across 30 buildings and 4,823 households.
As Seongsan-Siyeong Apt. is regarded as the largest reconstruction complex in the northwestern area, many builders are already eyeing it. Major construction firms such as Samsung C&T, Hyundai E&C, Daewoo E&C, DL E&C, GS Engineering and Construction, POSCO E&C, and HDC Hyundai Development Company are said to be interested. The association aims to select a contractor in the second half of this year.
Nowon District, another northern area drawing attention for reconstruction, is also seeing large complexes pick up speed. Milyung, Miseong, and Samho 3rd (Mimisam), a station-area complex by Gwangwoon University Station in Wolgye-dong, is recently undergoing procedures to designate the redevelopment plan and zone. Adjacent to Gwangwoon University Station, Mimisam is planned to be rebuilt from 14 stories and 3,930 households to as high as 56 stories and 6,700 households. Boram Apartment in Sanggye-dong, which is at a similar stage, is also pushing to rebuild from 15 stories and 3,315 households to as high as 45 stories and 4,483 households.
Northern Seoul has long been considered barren ground for reconstruction compared with the Gangnam area. According to the Seoul city government, while there are 65 reconstruction business sites in the three Gangnam districts (Gangnam, Seocho, and Songpa), there are only 22 reconstruction (multifamily housing) business sites across 14 northern autonomous districts. Because profitability is relatively low, reconstruction in northern Seoul is now showing signs of starting up, centered on large complexes near stations.
The Seoul city government is also pushing deregulation, including raising floor area ratios, to revitalize reconstruction and redevelopment in northern Seoul. Mayor Oh summarized his local election theme as development "again, a golden age for northern Seoul." In his New Year's address, he said, "Northern Seoul must thrive for Seoul to grow, and Seoul must grow for the Republic of Korea to move forward," emphasizing, "We will revitalize northern Seoul, the central axis of the city, and open, again, a golden age for northern Seoul."
Given this, redevelopment is also gaining strength. A representative case is the Seongsu strategic redevelopment zone. The Seongsu strategic redevelopment zone covers four districts—Seongsu 1, 2, 3, and 4—and is an extra-large project site with a land area of about 530,000 square meters (160,000 pyeong). The fastest-moving is Seongsu District 4, which held a project briefing on the 26th of last month attended by five companies, including HDC Hyundai Development Company, Daewoo E&C, DL E&C, Lotte E&C, and SK ecoplant. Competition was also fierce at the site briefing for Seongsu District 1, a project worth 2 trillion won in construction costs held the same month, with four companies—Hyundai E&C, GS Engineering and Construction, HDC Hyundai Development Company, and Kumho E&C—taking part.
An industry official said, "As the Seoul city government simultaneously pushes to relaunch the Northern Crosstown Line, build the Northern Crosstown Underground Expressway, and underground the Inner Ring Road and the Northern Arterial Road, improvements to the transportation network are serving as a boon for redevelopment," adding, "From the perspective of builders, redevelopment is led by associations and the collateral is solid, so they are focusing on winning project sites with both business viability and symbolic value."