Garam and Sangnok-su Apartments, representative low-rise complexes around Irwon Station in Gangnam-gu, Seoul, have successively begun the process to establish reconstruction associations. The two complexes are currently up to five stories tall with a total of 1,236 households. If the project is completed as planned, they will rise to up to 25 stories with 1,944 households, an increase of 708.
According to the maintenance industry on the 2nd, Sangnok-su Apartments in Irwon-dong received approval from the Gangnam District Office on Aug. 28 for the formation of a preparatory committee to establish a reconstruction association. It came two months after the area was designated as a maintenance zone in June. The preparatory committee is aiming for association establishment approval in early next year.
Completed in 1993, Sangnok-su Apartments is a complex near Irwon Station on Seoul Subway Line 3 with a maximum of five stories, 22 buildings, and 740 households. With an existing floor area ratio of 109%, which is low, it is considered relatively favorable for securing units for general sale. Under the maintenance plan, Sangnok-su Apartments will be rebuilt to up to 25 stories, 12 buildings, and 1,126 households. There will be 74 rental units.
Right next door, Garam Apartments is on the verge of establishing an association. It completed the designation as a maintenance zone and the formation of a preparatory committee in April and will hold a founding general meeting for association establishment on the 17th. The preparatory committee aims to obtain association establishment approval in October, apply for integrated review in the first quarter of next year, and move to select a Sigongsa.
Garam Apartments is also a low-rise complex completed in 1993 with a maximum of five stories. It is slated to be rebuilt from the current 13 buildings and 496 households to up to 25 stories, 8 buildings, and 818 households. There will be 61 rental units.
Garam and Sangnok-su are the fastest-moving complexes for reconstruction in the Suseo housing site development district. The Suseo housing site development district spans 1,335,246 square meters across Irwon and Suseo-dong, and about 16,000 households were built there in the 1990s. Many complexes have passed the 30-year mark since completion, the threshold for reconstruction.
Seoul last year revised the district unit plan for the Suseo housing site development district to allow higher zoning. As a result, reconstruction conditions for low-rise complexes improved, and some complexes around Suseo Station can pursue reconstruction up to 40 stories. However, Garam and Sangnok-su near Daemosan were planned for up to 25 stories in consideration of the natural landscape and other factors.
Reconstruction expectations have been reflected in home prices. The exclusive 84 square meters at Sangnok-su Apartments rose 610 million won, from 2.64 billion won in May last year to 3.25 billion won in January this year. The same housing type at Garam Apartments also climbed 650 million won, from 2.78 billion won in March last year to 3.43 billion won in December. Both transactions were record highs at the time.
An official at a certified real estate agency in Irwon-dong said, "Sangnok-su and Garam, Hansol Apartments, and Cheongsol Village are cited as beneficiaries of deregulation," and added, "Prices jumped sharply last year, but recently transactions have not been active due to uncertainty over lending regulations and tax reform."
Development around Suseo Station is also boosting reconstruction expectations. On a site of about 100,000 square meters at the Suseo Station transfer center, a Shinsegae department store up to 26 stories, a four-star hotel, and office, education, and research facilities are planned. The project cost is about 1.6 trillion won. The operator aims to break ground within the year and complete the project in 2033. A mixed-use development is also underway to cover the top of the Suseo rail yard in Jagok-dong with an artificial deck to build office, residential, and commercial facilities.
Other aging complexes are also moving to rebuild. Hansol Apartments and Cheongsol Village in Irwon-dong are drafting maintenance plans. Samik and Sindonga Apartments in Suseo-dong passed the precise safety diagnosis and are proceeding with maintenance plan procedures, and Kkachi Maeul Apartments is also undergoing a safety inspection.