As redevelopment hopes rise, asking prices are climbing at an aging apartment complex in Wolgye-dong, Nowon District, Seoul. The asking price for a 20-pyeong unit at Wolgye Samho 4th complex has recently risen to around 900 million won. With the so-called "Mimisam" redevelopment of nearby Misung, Miryung, and Samho 3rd complex aligning with the Gwangun University Station area development, prices of older complexes across Wolgye-dong are being reassessed.
On the 8th, according to the redevelopment industry and nearby real estate agencies, the asking price for a 20-pyeong listing at Wolgye Samho 4th complex in Wolgye-dong, Nowon District is currently around 900 million won. Built in 1987, the complex has 910 households and consists mainly of small to mid-size units with supply areas of 68㎡ and 79㎡. Considering that the actual transaction price for a 20-pyeong unit was in the high 600 million won to around 700 million won range during the same period last year, today's on-site asking prices are about 200 million won higher in one year.
Actual transaction prices are also on the rise. A 20-pyeong unit at Wolgye Samho 4th complex recently changed hands in the mid-700 million won range, and it sold for 820 million won in May. A staffer at a nearby A Real Estate Agency said, "Only about two to three 20-pyeong listings remain," adding, "As redevelopment expectations grow, homeowners are not easily lowering prices." Another agency staffer noted, "On the ground, listings in the 800 million won range are viewed as quick-sale prices."
Progress in the redevelopment project lies behind the price gains. Nowon District this year disclosed the designation of a redevelopment zone and a redevelopment plan for Wolgye Samho 4th complex. Under the plan, the complex will change from the current seven buildings with 910 households to a complex of up to 41 floors with 10 buildings and 1,239 households. While the floor area ratio cap under the National Land Planning and Utilization Act for Type 3 general residential areas is 300%, the plan presents a legal-cap-exceeding floor area ratio of 339.74% by reflecting special rules for areas near a station and a business feasibility adjustment coefficient. The new apartments are planned mainly around exclusive areas of 59㎡, 74㎡, and 84㎡.
The adjacent Mimisam redevelopment is also cited as a factor lifting Wolgye Samho 4th complex's asking prices. Mimisam refers to the grouped complexes of Wolgye Miryung, Wolgye Misung, and Wolgye Samho 3rd complex, which currently total 3,930 households. According to the redevelopment plan, a proposal is under review to rebuild Mimisam into a large complex of more than 6,100 households with buildings up to 50 floors. As major unit types in Mimisam have already moved into the high-900 million won to 1 billion won transaction range, analysts say buying interest is spreading to Samho 4th complex, which had been relatively cheaper.
Development of the Gwangun University Station area is also raising expectations. Around Gwangun University Station, a mixed-use project combining residential, office, and commercial facilities is underway, centered on Seoulone IPARK. Once the project is completed, with multifamily housing, offices, a hotel, and retail going in, expectations are that the residential image of the Wolgye-dong area will also change.
Redevelopment momentum in Nowon District is not confined to Wolgye-dong. Large complexes completed in the 1980s and 1990s—Junggye Green, Junggye Jugong, Sanggye Jugong, and Hagye Jangmi—have also begun reviews for redevelopment.
A staffer at a construction company said, "Nowon District has many large, aging complexes and established transport and lifestyle infrastructure, so prices can react quickly when redevelopment expectations take hold," adding, "However, for early-stage redevelopment complexes, variables such as construction costs, owner contributions, and project timelines are significant, so asking price increases should be considered separately from actual business feasibility."