Establishment of Machon 3 Union... Will the Only New Town in Gangnam See the 6·17 Balloon Effect?

Two Months After Sunset Deadline Extension in April
Goyeo 2-2 District Redevelopment June Move-in, etc.
Goyeo·Macheon New Town Gains Momentum... Preparations for Promotion Committee in Macheon 1 District
Some View Redevelopment Activation Due to Strengthened Reconstruction Regulations

[Asia Economy Reporter Onyu Lim] Macheon 3 District, located in the only New Town area in Gangnam, Seoul, covering the Geojeo and Macheon stations, is set to begin full-scale project implementation.

According to the real estate industry on the 24th, the Macheon 3 Redevelopment Promotion District, which involves demolishing 133,830㎡ of old housing in Macheon-dong, Songpa-gu, Seoul, and constructing a total of 2,473 apartment units, received approval for the establishment of its association from Songpa District Office on the 22nd. This came two months after the extension of the sunset deadline was decided.

The Macheon 3 District has experienced various twists and turns, including designation, cancellation, and re-designation. Although it belonged to the Geojeo and Macheon districts, it was deregulated in 2013 due to failure to receive association establishment approval. It was re-designated in 2017 and formed a promotion committee, but the project was delayed due to conflicts among residents and subsequent legal disputes. Then, in April, the Seoul Metropolitan Government’s Urban Redevelopment Committee’s decision to extend the sunset deadline narrowly saved the district from cancellation.

Choi Chang-yong, head of the Macheon 3 District association, said, "As the sunset deadline approached, the owners’ unity accelerated," adding, "We were able to establish the association quickly by submitting the sunset extension application and the association establishment consent form together."

With this approval, other projects in the Geojeo and Macheon New Town areas that had been deregulated are expected to gain momentum. Songpa Park Central, redeveloped from Geojeo 2-2 District, is preparing for move-ins this month, and the transformation of nearby Wirye New Town has greatly stimulated New Town residents. The full-scale development of the Wirye Tram, which allows sharing of surrounding infrastructure, is also a positive factor. Macheon 1 District was re-designated as a redevelopment district in January, six years after deregulation, and is preparing for promotion committee approval. Macheon 2 District is also pursuing re-designation.

With various favorable factors, investors are flowing into Macheon 3 District, depleting available properties and significantly raising asking prices. Recently, a villa with a land share of 29.37㎡ was listed at 700 million KRW, approximately 79 million KRW per 3.3㎡. A local real estate agent said, "Until last year, transactions were possible with an actual investment amount of 500 million KRW including jeonse (long-term deposit lease), but now only properties priced in the mid-500 million to 600 million KRW range remain," adding, "As investors change hands, the redevelopment progress is quite rapid."

There are also forecasts that investors will shift to redevelopment projects like Macheon 3 District following the announcement of the June 17th measures, which strengthened reconstruction regulations. Yang Ji-young, director of Yang Ji-young R&C, said, "In a situation with abundant liquidity, the strengthening of reconstruction regulations will draw attention to redevelopment, which is relatively less regulated," adding, "Especially since the Geojeo and Macheon districts are the only New Towns in the Gangnam area of Seoul, the outlook is bright."

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