'Remodeling Craze' Suzy, Establishes Second Company... "Value Soared by Hundreds of Millions"

Boweon Apartment Forms Promotion Committee in October Last Year, Establishes Association in 4 Months
Actual Transaction Prices Soar... From 200 Million KRW in September to 400 Million KRW in February
"Aging Mid-Rise Complexes Undergoing Remodeling One After Another... High Floor Area Ratio Makes Reconstruction Difficult"

Bowon Apartment in Suji, Yongin, Gyeonggi-do (Photo by Bowon Apartment)

[Asia Economy Reporter Onyu Lim] In the Suji-gu area of Yongin-si, Gyeonggi-do, where housing prices are rapidly rising, a remodeling trend is spreading, centered on aging mid-rise apartment complexes. Following Choeip Apartment, Bowon Apartment has also succeeded in establishing a remodeling association within a short period. As expectations for capital gains increase, Shinjeong Village Complex 8, Shinjeong Village Complex 9, and Dongbu 1st Complex have also joined the remodeling efforts one after another.

According to the maintenance industry on the 10th, Yongin-si, Gyeonggi-do recently approved the establishment of a housing remodeling association for Bowon Apartment. With this, Bowon Apartment became the second remodeling association in Suji-gu after Choeip Apartment in August last year. Choeip Apartment has recently entered the process of selecting a ground investigation service company for a safety inspection. A housing department official from Yongin-si explained, "Bowon Apartment is scheduled to undergo remodeling using the horizontal annex extension method."

Bowon Apartment, completed in December 1994, succeeded in establishing the association just four months after forming the remodeling promotion committee in October last year. Currently consisting of five buildings with a maximum of 15 floors and 619 households, this apartment plans to increase the number of households by 92 through remodeling. Since the establishment of the association, the actual transaction price of this apartment has risen by several hundred million won in recent months. According to the Ministry of Land, Infrastructure and Transport's actual transaction price inquiry system, the 59㎡ (exclusive area) unit was traded at 293 million won in September last year, 357 million won in November, 400 million won in January this year, and 435 million won in February.

Besides Choeip and Bowon Apartments, remodeling projects are currently underway in Shinjeong Village Complexes 8 and 9, Dongbu 1st Complex, and Byeoksan Apartment in the Suji-gu area of Yongin. Recently, Dodam I-Park, Dodam Lotte Castle, and Jukjeon Parkville are known to be pursuing integrated remodeling.

The increase in remodeling projects in the Suji-gu area is due to the concentration of aging mid-rise apartments and the recent steep rise in housing prices, which has become a driving force for these projects.

According to Real Estate 114, there are 19,955 aging apartments in Suji-gu that were occupied between 1994 and 1999. However, most are mid-rise apartments with more than 10 floors, making reconstruction practically difficult. Compared to low-rise apartments, the floor area ratio is higher, which reduces profitability and increases additional financial burdens on residents.

In this situation, the recent sharp rise in housing prices in Suji-gu has improved the feasibility of remodeling projects. The housing price increase rate in Suji-gu over the past three months is close to 5%. A real estate agent in Pungdeokcheon-dong said, "Compared to nearby Gwanggyo or Pangyo, housing prices are affordable while the location is good, and with the establishment of remodeling associations, inquiries have been increasing recently," adding, "Recently, sellers withdrawing listings due to expectations of further price increases have also become noticeable."

This content was produced with the assistance of AI translation services.