A transit-oriented redevelopment project to build apartments up to 40 stories with 885 households near Sookdaeipgu Station in Yongsan District, Seoul, has entered the contractor selection phase. The estimated construction cost is about 550 billion won. Of the 315 total rental dwellings, 253 are planned as long-term jeonse dwellings with a maximum residency of 20 years.
According to the maintenance industry on the 21st, Daishin Asset Trust, the implementer of the "Sookdaeipgu transit-oriented long-term jeonse dwelling urban-renewal-type redevelopment project," issued a bid notice for selecting a contractor on the 14th. It plans to hold a site briefing on the 24th and close bidding on Oct. 8.
The project site covers 36,611.5 square meters around 52-6 Galwol-dong, Yongsan District. Under the current maintenance plan, a complex of multi-family dwellings and ancillary welfare facilities will be built from five floors underground to up to 40 floors above ground, totaling 885 households. The total floor area is 190,996.78 square meters. Of the 315 rental dwellings, 253 are planned to be supplied as transit-area long-term jeonse dwellings. The number of households and floor counts may change during Seoul City's integrated review process.
The construction cost presented by Daishin Asset Trust in the bid notice is 9.3 million won per 3.3 square meters. The total construction cost is estimated at about 550 billion won. A Daishin Asset Trust official said, "We plan to present the specific terms of the turnkey contract at the site briefing."
The transit-area long-term jeonse dwelling project relaxes regulations on floor area ratio and zoning near stations to allow high-density development, while securing a portion of the increased housing supply as long-term jeonse dwellings as an incentive. In principle, Seoul City applies benefits such as floor area ratio relief to areas within 250 meters of a subway platform boundary. It also abolished the mandatory ratio of non-residential facilities in quasi-residential zones.
The site was designated and publicly announced as a maintenance zone in Dec. last year. In Mar. this year, Daishin Asset Trust was designated as the project implementer, and the project is being pursued as Yongsan District's first trust-based redevelopment.
The project implementer is also preparing to apply for Seoul City's integrated review. A Yongsan District official said, "We are preparing with the goal of entering the integrated review process before selecting a contractor," adding, "After selecting the contractor, the process will proceed in the order of applying for approval of the project implementation plan reflecting the review results."
The site is about a three-minute walk from Sookdaeipgu Station on Seoul Subway Line 4. Seoul Station and Namyeong Station on Line 1 are also within walking distance. From Seoul Station, passengers can use Line 1, Line 4, the Airport Railroad, and KTX.
Park Hapsu, an adjunct professor at Konkuk University Graduate School of Real Estate, said, "The transportation conditions are good, and some households are likely to have views of Yongsan Park." Kim Hakryeol, head of the real estate research institute Smart Tube, said, "It is a rare flat area in Yongsan and has good accessibility to the Jongno and Jung District business areas," adding, "If surrounding developments such as the Yongsan International Business District proceed, the residential environment could also improve."
According to Seoul City, 1,789 long-term jeonse dwellings have been supplied to date through transit-oriented redevelopment projects. Seoul City plans to start construction on an additional 2,638 households by 2031.