With Rising Housing Prices, Redevelopment Gains Momentum in Daejeon Old Downtown

Daedong 4·8 District, Samsung 1 District Receive Consecutive Union Establishment Approvals
Large Influx of External Investors... 1 in 5 Participants
High Potential for Innovation City and Strong Will of Daejeon City to Revitalize Old Downtown

Daedong District 4-8 Zone Bird's-eye View

[Asia Economy Reporter Onyu Lim] The redevelopment projects in the old downtown area of Daejeon, which is experiencing the steepest rise in housing prices in the provinces, are gaining momentum. Redevelopment zones that had been stagnant for over a decade have recently succeeded in establishing associations one after another, attracting increasing visits from out-of-town investors.

According to the redevelopment industry on the 13th, Dong-gu Office of Daejeon approved the establishment of associations for Daedong 4ㆍ8 District and Samsung 1 District on the 10th and 11th, respectively. Both are redevelopment zones located around Daejeon Station in the old downtown area of Daejeon.

Daedong 4ㆍ8 District, the largest redevelopment site in Dong-gu, is a project to build a large apartment complex with a total of 2,679 households, consisting of 3 basement floors and 33 above-ground floors, in the area of 22, Dongdaejeon-ro 124beon-gil. It is close to Daejeon Station, Daejeon Complex Terminal, and Daejeon IC, and Daedong Station on Daejeon Subway Line 1 will be transformed into a transfer station for Lines 1 and 2 in the future. Nearby schools include Daedong Elementary, Jayang Elementary, Chungnam Middle, Woosong Middle, and Daejeon Girls' High School. Samsung 1 District is a project to build 1,622 apartments with 4 basement floors and 49 above-ground floors and 210 officetel units in the area of 618, Daejeon Cheondong-ro. It is also adjacent to Daejeon Station near Daedong 4ㆍ8 District.

Both projects began redevelopment after the establishment of promotion committees was approved in 2006, but due to a local housing market slump and lack of resident interest, the projects were once even considered for cancellation.

The recent surge in redevelopment projects in the old downtown area is due to soaring housing prices in Daejeon. According to the Korea Real Estate Board, the apartment price increase rate in Daejeon in the first week of March was 0.41%. Although the increase rate decreased from 0.75% the previous week, it has continued to rise for 46 consecutive weeks since the fourth week of April last year. Dong-gu, where Daedong 4ㆍ8 District and Samsung 1 District are located, has also seen a 34-week consecutive increase.

The growing interest of out-of-town investors in Daejeon real estate is also driving the project forward. Among 6,268 people who purchased apartments in Daejeon last December, 1,134 were out-of-towners, about one in five. In January this year, out of 4,165 transactions, 904 were purchases by out-of-town buyers. A representative of a real estate agency in the area said, "Since Dong-gu has the best location, there is a high demand for actual residence, but recently investors from the metropolitan area as well as the Gyeongsang region have been coming to look at properties."

The plan to revitalize the Daejeon Station area and the designation of an innovation city are also considered positive factors. Earlier, on the 10th, Mayor Heo Tae-jung of Daejeon said, "In line with the basic goal of revitalizing the old downtown, we will designate an innovation city centered around the Daejeon Station area."

The competition among major construction companies is also intense. For Daedong 4ㆍ8 District, local construction company Gyeryong Construction, as well as Hyundai Construction, Hyundai Development Company, SK Construction, and Daelim Industrial are expected to participate in the bidding. For Samsung 1 District, Gyeryong Construction, POSCO, Daelim Industrial, and Lotte Construction are also reportedly showing interest.

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