A blueprint for the reconstruction of the high-end low-rise apartment cluster in Sangil-dong, Gangdong-gu, Seoul has been released. The goal is to transform it into a complex with up to 29 floors and 1,513 homes, and investors are focusing on its strong business potential. Unlike many complexes in Gangnam and Yeouido that are proceeding with reconstruction and must pay hefty additional charges, most association members here are expected to receive refunds ranging from hundreds of millions of won to tens of billions of won or obtain a "1+1 allocation."
According to the Seoul city government and others on the 10th, Gangdong-gu Office is conducting a public notice for the integrated reconstruction and maintenance plan for the Sangil-dong low-rise apartment complex from the 4th to Apr. 3. The project will integrate and reconstruct five low-rise apartments: Daelim Low-rise Apartment (moved in 1992, 108 homes), Samsung Low-rise Apartment (1988, 132 homes), Sangil Useong Town (1989, 105 homes), Hyundai Low-rise Apartment (1986, 84 homes), and Hyosung Low-rise Apartment (1987, 69 homes). After resident briefings and other procedures, the five low-rise apartments plan to apply to Seoul for designation as a maintenance zone as soon as possible.
The stalled reconstruction project gained momentum last year when it applied for the city's expedited integrated planning advisory program. About a decade after the five low-rise apartments each pursued standalone reconstruction, the integrated effort is now accelerating.
What makes the Sangil-dong low-rise apartment reconstruction stand out is its strong business case. Each low-rise apartment has a low floor area ratio of 88% to 91%, and many units are large, giving them sizable land shares (the land area owned per household), a key metric for reconstruction profitability. The land share ratio, which divides the land share by the exclusive use area, is also high at 86% to 99%. The higher the land share ratio, the larger the no-cost unit size upon reconstruction and the lower the additional charges, boosting future value.
According to the public plan, in the case of Daelim Low-rise Apartment, which consists of large units, an owner of a 173㎡ exclusive-use unit would receive a refund of about 1.555 billion won if moving to an 84㎡ unit, the standard popular size. Even when allocated a 168㎡ unit, the largest in the reconstruction, the owner would get back 477 million won. An association member currently living in 262㎡ who downsizes to 59㎡ or 74㎡ would receive about 3.3 billion to 3.5 billion won. It is also expected to be possible to receive two 84㎡ units (estimated sale price 1.66 billion won each). For Hyosung Low-rise Apartment members, which mainly consist of 30- to 40-pyeong units, a member holding 104㎡ would get back 600 million won or 180 million won when applying for 84㎡ or 114㎡, respectively.
The location is considered excellent. When Phase 4 of Seoul Subway Line 9's extension is completed, "Hanyoung Foreign Language High School Station" will be built right in front of the complex. Construction began in Jan. 2023, and progress is currently in the 30% range. A representative of a real estate brokerage in Sangil-dong said, "Although the exterior has aged after more than 30 years since move-in, this low-rise apartment complex was an affluent area where asset holders and entertainers mainly lived at the time," adding, "It is a 'forest-side' area surrounded by mountains and parks, and it is a prestigious school district with Hanyoung Middle School, Hanyoung High School, Hanyoung Foreign Language High School, and Gangdong High School concentrated nearby. The Line 9 extension is also expected to be a favorable factor."
The number of units is small, so listings are limited, but transactions have been steady. A 122㎡ exclusive-use unit at Hyundai Low-rise Apartment sold for 2.45 billion won on Jan. A Samsung Low-rise Apartment 84㎡ and a Hyosung Low-rise Apartment 131.64㎡ also closed in the same month at 2.04 billion won and 2.45 billion won, respectively.