Daechi-dong in Gangnam-gu, Seoul, which had ceded its place as Gangnam's representative wealthy neighborhood to Banpo-dong, is moving to strike back on the momentum of redevelopment. Following the Eunma Apartments, now in its 47th year, receiving project implementation approval early this month, Daechi-dong's flagship aging complexes such as Seonkyung, Mido, Useong, and Ssangyong are also getting on the redevelopment track one after another. Expectations are growing that Daechi-dong could be reappraised if its strong school district is coupled with a new-build premium, but experts say it will not be easy to catch up quickly with the stature of Banpo-dong, which has a Han River location and daily-life infrastructure.
According to the maintenance industry on the 9th, as of the 6th, resident consent for redevelopment at Seonkyung Apartments in Daechi-dong, Gangnam-gu, Seoul, surpassed 70%. Completed in 1983, this complex has a high ratio of mid- to large-size units and is a large-scale site. Along with Gaepo Useong 1 and 2 and Daechi Mido 1 and 2, it is one of Daechi-dong's representative aging complexes known as the so-called "U-seon-mi." After a rapid integrated planning advisory meeting in Aug. last year, the maintenance plan was finalized in May, about nine months later. Under the plan, Seonkyung Apartments will be rebuilt up to 49 stories with 1,571 households.
Until the early 2000s, Daechi-dong, together with Dogok-dong, was considered a representative wealthy neighborhood in Gangnam. But in 2008, with Banpo Xi and Raemian Firstige going up in succession, the center of high-end residential areas shifted to Banpo-dong. Apartment prices also flipped. According to Real Estate 114, at the end of 2008, Daechi-dong apartment sale prices were 32.42 million won per 3.3 square meters, more than 10% higher than Banpo-dong's 29.07 million won. But as of June this year, Daechi-dong's average apartment sale price was 75 million won per 3.3 square meters, about half of Banpo-dong's 132.92 million won.
Daechi-dong's slower redevelopment than Banpo stems from differences in business feasibility. Major complexes in Banpo-dong historically had low floor area ratios, making it easier to secure general pre-sale units after redevelopment. In contrast, Daechi-dong's aging complexes generally had higher existing floor area ratios and smaller land shares per household, slowing progress. An employee at a Daechi-dong certified real estate agency said, "Banpo's major complexes had good redevelopment profitability based on low floor area ratios, but Daechi-dong's business conditions were relatively demanding," adding, "If key complexes are replaced with new builds, Daechi-dong is highly likely to gain a new-build premium."
The most advanced site is the Eunma Apartments. The Eunma Apartments received project implementation approval early this month. The association expects that if the management and disposal approval process proceeds as planned, relocation could begin next summer and groundbreaking could take place in 2028. Daechi Mido Apartments is also picking up speed. The Gangnam-gu Office approved the formation of the Daechi Mido Apartments association establishment promotion committee in Mar. The promotion committee plans to establish an association within this year and select a constructor in the first half of next year. Gaepo Useong 1 and 2, after rapid integrated planning for redevelopment was confirmed in Mar., are preparing to form an association establishment promotion committee.
Daechi Ssangyong 1 selected Samsung C&T as the redevelopment constructor in Apr. The complex is slated to be rebuilt into six buildings with a maximum of 49 stories and 999 households. Daechi Useong 1 and Daechi Ssangyong 2 are pursuing integrated redevelopment. Under the maintenance plan, the two complexes will be transformed into a maximum of 49 stories with 1,324 households.
Redevelopment expectations are being reflected in prices. According to nearby brokerages, a 76-square-meter exclusive unit at the Eunma Apartments that changed hands for 3.77 billion won last month now has asking prices rising to as high as 4.3 billion won. The asking price for a 94-square-meter exclusive unit at Seonkyung Apartments is in the 4.0 billion to 4.2 billion won range. The most recent actual transaction for this layout was 3.7 billion won in Apr.
However, some say that even if Daechi-dong completes redevelopment, it will not be easy to narrow the gap with Banpo-dong in a short time. Kim Hyo-seon, a senior expert at KB Kookmin Bank, said, "In the past, school districts were among the most important criteria for choosing a residence, but recently many buyers also look at the overall residential environment and life satisfaction," adding, "Banpo has accessibility to the Han River, proximity to stations, and a full array of amenities, so it is highly likely to maintain its position as Gangnam's representative wealthy neighborhood until Apgujeong's redevelopment is completed."