Redevelopment projects in the northeastern part of Seoul are gaining speed, buoyed by the halo effect from Seongsu-dong. The areas around Geumho-dong in Seongdong District and Jayang-dong in Gwangjin District are representative. In the past, the area was relatively undervalued due to a concentration of old low-rise residences, but with the recent heat of development in Seongsu-dong, its location along the Han River, and access to Gangnam coming to the fore, redevelopment is entering full swing.
According to the redevelopment industry on the 15th, Seongdong District on the 30th of last month announced a plan to establish a small-scale dwellings maintenance management plan for lots around 129, Geumho-dong 1-ga, and began public inspection to hear residents' opinions. This area will be promoted as part of the Moa Town initiative, and a total of 518 households (including 89 rental units) are to be supplied on a site of 14,282 square meters. Once the management plan approval and public notice are completed, follow-up procedures such as establishing a cooperative will begin.
The key feature is that the business feasibility has been greatly strengthened by upgrading the zoning. The management plan includes raising the zoning of the area from a Type 3 general residential zone to a semi-residential zone. The maximum floor area ratio in a Type 3 general residential zone is 300%, and in a semi-residential zone it is up to 500%.
Geumho District 21, a large-scale redevelopment site, is also accelerating its push. A consolidated review is slated for the second half of this year, after which the project will proceed to project implementation approval and management disposition approval before starting construction. In Feb., Lotte Construction was selected as the builder. Once the project is completed, a large apartment complex with 1,219 households will rise, spanning four basement levels to 20 above-ground floors.
Geumho District 16 is now in the final stages of demolition and relocation, and Geumho District 23 has shifted course from public redevelopment to pursuing a private urban complex development model. The Geumho-dong area, where development once stalled, has recently begun moving on multiple fronts at once.
Jayang-dong in Gwangjin District, which borders Seongsu-dong, is also seeing a change in mood. Zone A in Jayang 4-dong, cited as a key project site, on the 1st secured a 75% resident consent rate, the requirement for approval to establish a cooperative. The cooperative plans to hold a general meeting in July and complete selection of the builder within the year. The project site covers 139,130 square meters, and when development is completed, it is set to transform into a large complex with up to 49 floors and 2,999 households.
The local real estate market sentiment is also heating up. A representative of a real estate agency in Jayang-dong said, "Although Zone A in Jayang 4-dong is classified as Jayang-dong, it is separated from Seongsu District 4 by just one main road and belongs to the Seongsu living area," adding, "Recently, a 3–4 pyeong villa land equity that would yield an exclusive 59 square meters sold in the mid-1.5 billion won range." The person added, "Even though the premium was around 1 billion won, the sale went through quickly."
Jayang District 7, located between Konkuk Univ. Station on subway Lines 2 and 7 and Jayang Station on Line 7, is also pushing for project implementation approval. The target is Nov. When development is completed, a complex with up to 49 floors and about 1,200 households will be built.
In addition, small-scale maintenance projects such as the Moa Town initiative are being promoted simultaneously across Jayang-dong. There are currently seven designated Moa Town initiative zones, and most are in the management plan formulation stage.
A redevelopment industry official said, "Jayang-dong shares Seongsu-dong's infrastructure and Han River location, yet the price burden is still relatively lower," adding, "As the development effects in Seongsu-dong take full hold, Jayang-dong also has a strong chance of being reappraised as a key residential area along the Han River."