Seongsan Siyoung Reconstruction, Conditional Approval of Detailed Safety Inspection

[Asia Economy Reporter Yuri Kim] Seongsan Sijeong Apartment in Seongsan-dong, Mapo-gu, considered the largest-scale reconstruction in the northern Seoul area, has conditionally passed the detailed safety inspection. The final decision on whether this complex passes the safety inspection will be made as early as the first half of the year after a public institution's adequacy review.

According to the real estate industry on the 9th, Mapo-gu notified the Seongsan Sijeong Apartment side yesterday that it received a 'conditional reconstruction (Grade D)' in the detailed safety inspection service. Apartments receiving a Grade D must undergo a secondary adequacy review by public institutions such as the Korea Facilities Safety Corporation or the Korea Institute of Technology, both under the Ministry of Land, Infrastructure and Transport. Mapo-gu plans to finalize the review schedule after consulting with the public institution responsible for the adequacy review of this complex.

This apartment complex, built in 1986, consists of 14-story mid-rise buildings. With a total of 33 buildings and 3,710 households, it is the largest reconstruction complex in the northern Seoul area. It faces the Seoul World Cup Stadium across the Bulgwangcheon Stream, and the World Cup Stadium Station on Subway Line 6 is nearby. Although it passed the preliminary safety inspection in 2016, the schedule has been delayed due to the government's strengthened safety inspection standards and the Korea Facilities Safety Corporation's reservation opinion, which was in charge of the service.

Residents plan to demolish the existing old apartments and build about 5,000 new households on the site. Due to reconstruction expectations, prices have shown a continuous upward trend. According to the Seoul Real Estate Information Plaza, in December last year, a 50.54㎡ unit in Seongsan Sijeong (Seon-gyeong) was traded at 800 million KRW. Compared to the market price of around 400 million KRW at the end of 2016, the price nearly doubled in three years.

The adequacy review by public institutions usually takes about six months. Accordingly, the final result of the safety inspection is expected to be announced as early as the first half of this year. A maintenance industry official said, "Even after passing the detailed safety inspection, there are cases where the adequacy review by public institutions fails, so the final result must be observed," adding, "Even after that, due to issues such as the reconstruction excess profit recovery system and the price ceiling system, it is likely to take time before reconstruction fully begins."

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