Mok-dong Hanshin Cheonggu Apartment in Yangcheon-gu, Seoul, received approval to establish a remodeling association. As the 14 complexes of Mok-dong New Town accelerate reconstruction, older apartments around them that are not part of those complexes are moving ahead with remodeling as their renewal projects. Complexes with high floor area ratios and low land shares, which lowers the profitability of reconstruction, are opting for remodeling, which can relatively shorten the project timeline.
According to the renewal industry on the 29th, the Mok-dong Hanshin Cheonggu Apartment Remodeling Association Establishment Promotion Committee received approval from the Yangcheon District Office on the 18th to establish an association. It came about two months after it held a founding general meeting on Apr. 18 and applied for approval to establish an association on Apr. 21. The association plans to proceed with follow-up procedures such as selecting a constructor and the first safety assessment. Samsung C&T and POSCO E&C are reportedly showing interest in this project.
Completed in 1997, Mok-dong Hanshin Cheonggu is a complex of one basement level to as high as 15 above-ground floors with 1,512 households. The promotion committee is reviewing a plan to convert it to as high as 29 floors and 1,738 households through horizontal and detached-building extension remodeling. The dwellings, which were mainly 31-pyeong types, will be expanded to around 42 pyeong after remodeling, and the number of parking spaces will increase from the current 1,321 to more than 2,600. However, the specific design and business plan will be finalized after collecting association members' opinions.
The complex had reviewed a renewal project for years, but differing resident opinions over reconstruction versus remodeling delayed the decision on the project direction. However, as reconstruction in Mok-dong New Town picked up in earnest last year, consensus grew that nearby aging complexes also needed to improve their residential environments. The promotion committee secured the requirement for establishing an association—resident consent of at least two-thirds—in about 10 months.
The biggest reason Mok-dong Hanshin Cheonggu chose remodeling over reconstruction is project profitability. The complex's existing floor area ratio is about 233%. In the renewal industry, it is generally believed that the higher the existing floor area ratio, the harder it is to secure general pre-sale supply in reconstruction. The land share per household is also not large at about 40.6 square meters. The promotion committee and some in the industry believe that if reconstruction is pursued, the per-household contribution could rise to more than 700 million won. In contrast, if it remodels, they expect to lower the contribution to the 300 million won range.
Older complexes nearby are also going through remodeling procedures. Mok-dong Woosung Apartment near Mok-dong New Town Complex 1 received approval for a remodeling business plan from the Yangcheon District Office and has entered the relocation preparation stage. With GS Engineering & Construction as the builder, this complex is expected to increase from 332 to 361 households. The association is pushing the project with a goal of move-in in 2031 after a general meeting to finalize the contributions, then moving into relocation procedures.
Woosung Phase 2 Apartment in Sinjeong-dong is also pursuing remodeling. The Seoul City Urban and Architectural Joint Committee passed the designation of a district unit plan and the landscape plan, and the process of securing consent forms for remodeling approval is underway. With Lotte Engineering & Construction participating as the constructor, the complex is promoting a plan to add around 160 households to the existing 1,140 through remodeling.
A renewal industry official said, "As reconstruction in Mok-dong New Town gains speed, nearby aging complexes are moving into renewal projects in hopes of improving their residential environments and boosting asset value," and added, "Remodeling is expected to reduce the project timeline compared with reconstruction, but variables remain in the form of safety assessments, structural reinforcement, and contributions rising with construction costs."