"United We Stand"... Remodeling 'Integration Wave'

Sadang-dong Woosung 2·3rd + Geukdong + Sindonga 4th Union Establishment Promotion Committee Launched
Enhancing Brand Value by Combining Individual Complexes... Also Being Promoted in Yongin and Suwon
Differences in Conditions for Each Complex May Lead to Resident Disagreements During Integration Process

[Asia Economy Reporter Choi Dong-hyun] A wave of integration is also sweeping through apartment remodeling projects. The attempt is to enhance brand value by combining individual complexes into one and promoting the project collectively. However, experts point out that since conditions vary for each complex, many projects fail due to disagreements among residents during the integration process.

According to industry sources on the 17th, four complexes in Sadang-dong, Dongjak-gu, Seoul?Woosung 2nd and 3rd phases, Geukdong, and Shindonga 4th phase?have launched a promotion committee this year to establish a remodeling association and are currently undergoing resident consent procedures. Combined, these four complexes total 4,396 households. The promotion committee had planned to hold a project briefing session for major construction companies this month, but the schedule is being adjusted due to the impact of the novel coronavirus (COVID-19). The committee aims to secure resident consent necessary for project promotion by June and establish the association around October. Currently, POSCO Construction, Ssangyong Construction, and Daelim Industrial are reportedly showing interest in this project.

In Sindorim-dong, Guro-gu, the integrated remodeling project for Woosung 1st, 2nd, 3rd, and 5th phases is in full swing. Sindorim Woosung phases 1, 2, and 3 were selected as pilot complexes for the 'Seoul-type Remodeling' in 2018 and have been promoting integrated remodeling. Recently, phase 5 joined, expanding the total to 846 households. This complex also planned to hold resident briefing sessions in February to March this year but postponed the schedule due to COVID-19. Currently, consent forms for association establishment are being collected for each complex, and as of the 15th, Woosung 3rd phase has surpassed a 55% consent rate. A promotion committee official expressed optimism, saying, "At this pace, all four complexes will complete association establishment by July to August this year, enabling the selection of a construction company."

Integrated remodeling projects are also being actively pursued in apartment complexes around Yongin and Suwon, where housing prices have surged due to regulatory balloon effects.

In Yongin, three integrated remodeling project complexes have already emerged in Suji-gu alone. Dodam I-Park, Dodam Lotte Castle, and Jukjeon Parkville, which surround Da-il Elementary School in Jukjeon-dong, recently decided to pursue integrated remodeling. The total scale is 1,152 households. They have opened an online community to exchange opinions and are currently gauging preliminary online consent rates. The Byeoksan 1st to 5th complexes and Chelsea Ville, located between Dongcheon Station and Ori Station, recently officially launched an integrated remodeling promotion committee. This large-scale project combines six complexes totaling 2,400 households. The River Heim and Daeju Hanshin complexes in Jukjeon-dong, totaling 647 households, are also reportedly discussing integrated remodeling promotion.

In Suwon, the Byeokjeokgol 8th complex in Yeongtong District and Sinnamusil 5th complex are each exploring integrated project promotion. Byeokjeokgol 8th complex consists of three complexes: Doosan, Woosung, and Hanshin, while Sinnamusil 5th complex was jointly constructed by four companies: Shinseong, Sinan, Ssangyong, and Jinheung.

The reason remodeling complexes are pursuing integration is the expectation that combining several small and medium-sized complexes into a large-scale complex can increase brand value. Large construction companies have recently shown interest in integrated remodeling projects to secure landmarks in prime locations. Because of this, some construction companies have even put up banners wishing for project success throughout the complexes before the promotion committees have officially launched.

However, experts point out that since the project involves combining several complexes with different circumstances, there is a high possibility of disagreements among residents. In fact, in 2018, an integrated remodeling project involving five complexes?Geonyeong Hangaram, Gangchon, Kolon, Daewoo, and Woosung?in Ichon-dong, Yongsan-gu, Seoul, totaling 50 buildings and 5,000 households, was promoted but failed due to resident disagreements.

Lee Dong-hoon, Chair of the Policy and Legal Committee at the Korea Remodeling Association, said, "Small-scale complexes tend to receive less interest from large construction companies and are undervalued, so there is a preference for integrated remodeling. The recent trend in integrated remodeling complexes is to maintain individual property rights separately while sharing management and community facilities."

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