The estimated member contributions for Eunma Apartments in Daechi-dong, Gangnam District, Seoul—considered a prime Gangnam reconstruction—have jumped sharply over eight months. Even those receiving a new apartment of the same size face up to nearly 200 million won in additional charges, while those applying for a 143-square-meter penthouse are seeing estimated contributions surge to nearly 3 billion won.
According to the redevelopment industry on the 21st, the reconstruction association for Eunma Apartments recalculated and posted the estimated member contributions ahead of filing for project implementation approval. The contribution is the expense that a member must pay in addition during the process of demolishing the existing apartment and building a new one. It is first calculated at the association formation stage and is then recalculated after a district office review before the general meeting for project implementation approval. The final amount is confirmed at the management and disposal plan stage.
Under the new notice, a member owning a 76-square-meter unit must pay an additional 420 million won to be allocated the same size after reconstruction. That is an increase of 190 million won from the estimated 230 million won in September last year. If an 84-square-meter owner is allocated the same size, the contribution rose from 180 million won to 320 million won over the same period, up 140 million won. Eunma Apartments consists of 28 buildings and 4,424 households, currently made up of two types: 76 square meters and 84 square meters of exclusive area.
The burden grows if moving to a larger unit. A 76-square-meter member must pay an estimated 1.54 billion won to be allocated a 109-square-meter unit after reconstruction. An 84-square-meter owner applying for a 143-square-meter penthouse would need to pay 6.44 billion won. Compared with the September estimate of 3.45 billion won, that is up 2.99 billion won. The 286-square-meter exclusive area was excluded from this contribution calculation.
The increase is even larger compared with the amounts calculated in 2023, when the association was being formed. The estimated contribution for an owner of a 76-square-meter unit to move to a 109-square-meter unit was 780 million won as of February 2023, but this time it is 1.54 billion won, about double. For those moving from 84 square meters to 109 square meters, the contribution rose from 480 million won to 1.2 billion won, up 2.5 times.
Eunma Apartments has a relatively high existing floor area ratio of 204%. Because of that, there is not much inventory to sell to the general public after reconstruction, making it a site known for heavy member contribution burdens. Although the number of units to be supplied increased by 655 in February this year with the application of the "station-area floor area ratio special case," improving business viability to some extent, construction costs are rising even faster, which appears to have increased the burden on members.
An official with the Eunma Apartments reconstruction association said, "During the review of the estimated contributions, construction costs per 3.3 square meters (one pyeong) were adjusted upward from 9 million won to 9.3 million won," adding, "Expanding community facilities in line with a premium complex and increasing the number of parking spaces per household, which increased the total floor area by about 165,000 square meters (about 50,000 pyeong), were also reflected in the contributions." Considering that the expected construction cost was 7 million won per pyeong at the initial reconstruction plan stage, construction costs have risen 32.9% in three years.
The problem is that construction costs are likely to keep rising for the time being. With raw material prices and labor costs continuing to climb, construction costs for redevelopment projects are increasing every year. Average construction costs per 3.3 square meters for redevelopment were 4.8 million won in 2021, 5.18 million won in 2022, 6.06 million won in 2023, 7.7 million won in 2024, and 8.08 million won in 2025. In major redevelopment sites in Seoul, there are already quite a few where construction costs exceed 10 million won per 3.3 square meters. Apgujeong District 4 in Gangnam District is at 12.5 million won, and Seongsu District 1 is around 11.32 million won.
An industry official said, "Even if general pre-sale prices are set high, the faster pace of construction cost increases means contributions inevitably rise every year," adding, "There is also a possibility that more members will choose cash liquidation because they cannot afford the reconstruction contributions."