The blueprint for the reconstruction of the high-end low-rise apartment cluster in Sangil-dong, Gangdong District, Seoul, has been unveiled. The goal is to transform it into a 29-story complex with 1,513 households, and investors are focusing on its strong business case. Unlike many complexes in Gangnam, Yeouido and other parts of Seoul that are proceeding with reconstruction and must pay sizable additional charges, most union 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 Metropolitan Government and others on the 10th, Gangdong District Office has been conducting a public notice for the integrated reconstruction 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: Daerim low-rise apartment (moved in 1992; 108 households), Samsung low-rise apartment (1988; 132 households), Sangil Woosung Town (1989; 105 households), Hyundai low-rise apartment (1986; 84 households) and Hyosung low-rise apartment (1987; 69 households). The five low-rise apartments decided to apply to the city of Seoul for designation as a maintenance zone as soon as possible after resident briefings and other procedures.
The stalled reconstruction project opened a path forward last year when it applied for the city of Seoul's expedited integrated planning advisory program. After more than 10 years of each low-rise apartment pushing for separate reconstruction, the integrated effort is now gaining speed.
The Sangil-dong low-rise apartment complex reconstruction is drawing particular attention for its high profitability. Each low-rise apartment has a low floor area ratio of 88%–91%, and many units are large, making the land share per household—the key metric for reconstruction profitability—relatively high. The land share ratio, which divides the land share by the exclusive area, is also high at 86%–99%. The higher the land share ratio, the larger the no-cost move-in unit size during reconstruction and the lower the additional charges, boosting future value.
According to the estimated individual additional-charge data listed in the public notice, an owner whose previous asset value (appraised value) is 3.5 billion won would receive about 1.1 billion won in refunds if allocated the largest reconstruction unit size of 168 square meters of exclusive area. The previous asset value of Daerim low-rise apartment's 229 square meters is about 3.7 billion won. If this union member significantly downsizes to 59 square meters or 74 square meters, they could get back 2.5 billion won or 2.28 billion won. It also appears possible to receive two allocations of 84 square meters (estimated sale price 1.66 billion won). A union member whose previous asset value is 2.5 billion won would receive about 1.09 billion won in refunds if applying for 84 square meters. The previous asset values of Hyundai low-rise apartment's 128 square meters and Samsung low-rise apartment's 134 square meters are 2.55 billion won and 2.54 billion won, respectively. The estimated additional charge equals the union member's sale price minus the rights value (previous asset value × proportional rate).
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. Work began in Jan. 2023, and the construction progress is currently in the 30% range. A representative of a real estate agency in Sangil-dong said, "Although the exterior has aged more than 30 years since move-in, this low-rise apartment complex was a wealthy area where asset owners and entertainers mainly lived at the time," adding, "It is a 'forest zone' surrounded by mountains and parks, and it is a school district with prestigious local schools such as Hanyoung Middle School, Hanyoung High School, Hanyoung Foreign Language High School and Gangdong High School concentrated nearby, and the Line 9 extension is expected to be a positive factor."
Although the number of households is small and listings are limited, transactions are taking place steadily. A 122-square-meter exclusive-area unit at Hyundai low-rise apartment sold for 2.45 billion won on Jan. 24. A Samsung low-rise apartment 84 square meters and a Hyosung low-rise apartment 131.64 square meters also closed in the same month at 2.04 billion won and 2.45 billion won, respectively.