Mammoth Redevelopment Complex of Over 7,000 Households Along Mokgamcheon in Gwangmyeong

Designation of 1R Zone as Maintenance Area Approved for Management Disposition After 11 Years
Relocation in July... Sale in 2022
Thanks to Shinansan Line, GTX B·C, General Sale Expected to Proceed Smoothly Within the Year

[Asia Economy Reporter Donghyun Choi] Among the 11 districts of Gwangmyeong New Town in Gwangmyeong City, Gyeonggi Province, the 1R district, which is the second largest with 3,585 households, has received management disposition approval 11 years after being designated as a redevelopment zone. The 1R district, along with the adjacent 2R district, is located next to the Seoul city boundary across the Mokgamcheon Stream, effectively classifying it as part of the Seoul living area. Notably, once the project is completed, the two districts combined will form a large complex with nearly 7,000 households.

According to industry sources on the 4th, Gwangmyeong City approved the management disposition for the Gwangmyeong New Town 1R district redevelopment project at the end of last month. A representative of the 1R district association stated, "We plan to proceed with relocation around July after finishing the final preparations."

The Gwangmyeong 1R district, with a project site area of 163,004㎡, is the second largest in scale after the 11R district (4,367 households) in Gwangmyeong New Town. It was designated as a redevelopment zone in 2009, received association establishment approval in 2012, and project implementation approval in 2016. GS Construction, POSCO Construction, and Hanwha Construction are jointly participating in the construction. The complex will have up to 38 floors, 28 apartment buildings, and 3,585 households (including 217 rental units). Among these, 776 units ranging from 39 to 112㎡ (exclusive area) are for general sale. All 59㎡ units are allocated to association members.

The association sale price for an 84㎡ unit in the 1R district is 456 million KRW, and considering the current premium of around 200 million KRW in the high 200 million KRW range, the market price is forming in the early 700 million KRW range. Just before the approval of the management disposition plan, several transactions occurred at prices about 30 to 50 million KRW lower. This was because existing homeowners who could not receive move-in rights due to re-winning restrictions hurried to sell before the management disposition approval. According to Gwangmyeong City regulations, anyone with winning history in speculative areas or speculative overheating districts within five years before August 28, 2018 (the day before Gwangmyeong was designated as a speculative overheating district) and who purchased in the 1R district after the reference date is subject to cash settlement. However, since the 1R district received project implementation approval before being designated as a speculative overheating district, resale restrictions do not apply. A representative from A Real Estate in Cheolsan 1-dong, Gwangmyeong City, said, "Several listings with conditions for quick payment of the balance appeared earlier this month," adding, "Because the transactions were rushed, they were conducted at prices about 50 million KRW lower than the market price."

The adjacent 2R district, located in the northern part of Gwangmyeong New Town among districts 1, 2, 5, and 11, is progressing the fastest. It will also form a large complex with 3,344 households. After receiving management disposition approval in November 2018, demolition work is currently underway, and general sales are expected to take place within this year. The construction companies involved are Daewoo Construction, Lotte Construction, and Hyundai Engineering. The complex will be built with 26 buildings ranging from three basement floors to 35 floors above ground.

Gwangmyeong New Town benefits from various development prospects such as the Sinansan Line and the metropolitan area express railroads (GTX) B and C, making redevelopment projects proceed relatively smoothly. In particular, the Mokgamcheon Stream flowing west of districts 1 and 2 was upgraded to a national river by Gyeonggi Province in January. Once designated as a national river and redevelopment proceeds, national budget support will be provided. Additionally, a middle school is planned to be newly established in the 1R district, and an elementary school in the 2R district.

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