Mokdong 6-danji Passes Safety Inspection... Rebuilding Confirmed, Asking Prices 'Soar'

Among 14 Shinshigaji Complexes, First
Low-rise Units' Asking Prices Rise by 300 Million Won in a Month
Surrounding Complexes Stirred by Reconstruction Expectations
House Prices Soar in Mapo Seongsan Siyeong

Apartment complex in Mokdong, Yangcheon-gu, Seoul [Image source=Yonhap News]

[Asia Economy Reporter Onyu Lim] A strong wave of investment is sweeping through the aging mid-rise apartment complexes in Seoul, following the 'safety inspection' for reconstruction. Prices are soaring as Mokdong New Town Complex 6 in Yangcheon-gu and Seongsan Siyoung in Mapo-gu have consecutively passed the safety inspections.

According to the real estate industry on the 15th, Mokdong New Town Complex 6 saw a surge in investor interest over the weekend, causing asking prices to skyrocket. This followed news that the complex received a D grade in the adequacy review of the safety inspection by the Korea Facilities Safety Corporation on the 12th, confirming the push for reconstruction. Among the 14 complexes in Mokdong New Town, Complex 6 is the first to pass the safety inspection. The complex had previously received a D grade in the detailed safety inspection last December, and Yangcheon District Office requested the adequacy review from the Korea Facilities Safety Corporation in January.

The 47㎡ (exclusive area) units in Complex 6, which traded between 1.017 billion and 1.03 billion KRW last month, have now risen to 1.1 billion KRW. Even so, transactions are difficult as homeowners are withdrawing listings. The 115㎡ unit that sold for 2 billion KRW in March now has an asking price exceeding 2.3 billion KRW for lower floors.

Neighboring complexes are also experiencing price increases. This is due to expectations that the reconstruction of Mokdong New Town, which comprises about 27,000 households, will gain momentum. The 71㎡ unit in Complex 9, which traded for 1.255 billion KRW last month, now has an asking price of 1.4 billion KRW, nearly 100 million KRW higher. Complex 9 passed the detailed safety inspection in March and is currently awaiting the adequacy review results. Safety inspections are graded from A to E based on scores. Receiving an E grade (30 points or below) confirms reconstruction, but a D grade (31?55 points) requires passing the adequacy review by a public institution. Complex 5 in Mokdong is also expected to apply for the adequacy review soon. Complexes 1, 11, 13, and 14 are currently undergoing detailed safety inspection services.

A representative from real estate agency A in the area said, "Since most complexes have similar construction periods and aging levels, the confirmation of reconstruction for Mokdong Complex 6 is rapidly driving up asking prices in other complexes as well."

Prior to Mokdong Complex 6, the 35-year-old Seongsan-dong Siyoung Apartment in Mapo-gu, which passed the reconstruction safety inspection last month, is also seeing a sharp rise in housing prices. A 59㎡ unit was sold for 1 billion KRW on the 20th of last month, setting a new record price. Built in 1986, this apartment complex consists of 33 buildings with 14 floors each and 3,710 households, and is located right next to the Sangam district.

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