Acceleration of Busan Deokcheon 'Hanwha Forena Town'

Approval of Management Disposition Plan for Deokcheon 2 District Reconstruction Association
Earlier, Successful Subscription Closure for Deokcheon 2-1 District
Hanwha Plans a 1,900-Unit Branded Town with Stepping-Stone Orders up to Deokcheon 3 District

[Asia Economy Reporter Onyu Lim] Hanwha Construction's 'Forena Brand Town' project, consisting of 1,900 households in the Deokcheon-dong area of Buk-gu, Busan, has gained momentum. Following the fastest-moving Deokcheon 2-1 district, which closed subscriptions with a high competition rate, the Deokcheon 2 district recently received approval for its management disposition plan. The last remaining Deokcheon 3 district is also approaching project implementation approval.

According to industry sources on the 6th, the Buk-gu Office of Busan recently announced the approval of the management disposition plan for the Deokcheon 2 district reconstruction project. This district, consisting of Deokcheon Shiyeong Apartments and Han Hyo Apartments in 359-1 Deokcheon-dong, has passed the critical 90% mark of the project in a relatively short period of 2 years and 6 months since the establishment of the association was approved in October 2017.

An association official stated, "Although the situation is fluid due to the COVID-19 pandemic, the relocation process is expected to begin as early as June." The scale of construction in Deokcheon 2 district is a total of 795 households, which is not large, but with Deokcheon 2-1 district (636 households) and Deokcheon 3 district (438 households) also pursuing reconstruction, a large-scale urban maintenance effect is anticipated.

This area is considered to have an excellent location as it is near Sookdeung Station on Busan Subway Line 3 and is a rare flatland area in Busan.

In particular, Hanwha Construction is responsible for the construction of all three districts, so a large-scale brand town effect is expected. Hanwha Construction previously won the Deokcheon 2-1 district project in 2016, the Deokcheon 2 district in 2018, and the Deokcheon 3 district in 2019 consecutively.

Hanwha Construction plans to transform the Deokcheon-dong reconstruction complexes into a Forena brand town with 1,900 households, turning it into a new landmark in Buk-gu, Busan. The Deokcheon 2-1 district already succeeded in closing the first subscription round last month with a competition rate of 88 to 1, the highest in Busan since January 2018. The Deokcheon 3 district also held a general meeting of association members in March to apply for project implementation approval. A Hanwha Construction official said, "Starting with Deokcheon 2-1 district, we will reconstruct Deokcheon 2 and Deokcheon 3 districts to establish a Forena Town in Busan, similar to Samsung Town in Mapo and Xi Town in Gangnam."

As the project gains momentum, apartment transaction prices have also surged sharply. For example, the sale price of a 40㎡ (exclusive area) unit in Deokcheon Shiyeong Apartments rose rapidly from 180 million KRW (2nd floor) in December last year to 236 million KRW (1st floor) last month, and after the management disposition approval, asking prices have increased up to 300 million KRW. Near Deokcheon-dong,

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