Submission of Hannam 2 District Building Review... Hannam New Town Heating Up with the 'Hannam 3 District Effect'

Application for Association Establishment Submitted After 8 Years
Association Accelerates with Development Draft Disclosure
Zone 4 Gains Momentum with Shindonga Demolition
Zone 5 Prepares Amendment for Redevelopment Promotion Plan
Construction Companies Compete Fiercely for Construction Rights

[Asia Economy Reporter Donghyun Choi] With Hyundai Engineering & Construction selected as the contractor for the redevelopment project of Hannam 3 District in Yongsan-gu, Seoul, enthusiasm is heating up for the surrounding Districts 2, 4, and 5. Construction companies such as GS Engineering & Construction and Daelim Industrial, which missed out on the Hannam 3 District redevelopment project, are expected to put their all into securing construction rights for Hannam New Town.

According to the maintenance industry on the 24th, among Hannam Districts 2, 4, and 5, the district expected to be promoted first after District 3 is District 2. In fact, the Hannam 2 District redevelopment association recently submitted a building review plan to Yongsan-gu Office. This comes eight years after the association was approved for establishment on June 1, 2012. The building review is a crucial procedure before obtaining permits when constructing buildings above a certain scale, assessing urban aesthetics and public interest, and is the most important step before receiving project implementation approval after the association’s establishment.

Hannam 2 District covers 115,005㎡ around 271-3 Bogwang-dong and plans to build 1,537 apartment units through redevelopment. The project’s pace is the second fastest in Hannam New Town after Hannam 3 District. Recently, domestic construction companies that participated in the Hannam 3 District bidding revealed preliminary development plans including specialized designs, which has encouraged the Hannam 2 District project to accelerate. A member of the Hannam 2 District association said, "Recently, construction company employees have been frequently visiting Hannam New Town, and residents are being stimulated by advertising leaflets containing development blueprints," adding, "Hannam 2 District is close to Itaewon Station and has excellent access to Yongsan Park, so once development is complete, it will be the most notable location."

Another reason accelerating the Hannam 2 District project is to avoid the upcoming rule, effective in September, that mandates a maximum 30% supply ratio of rental housing in redevelopment projects. To avoid this rule included in the amendment to the Enforcement Decree of the Act on Maintenance and Improvement of Urban Areas and Dwelling Conditions, which passed the Cabinet meeting on the 16th, the project must receive implementation approval or submit an application by the end of August. However, the association believes it is unlikely to avoid this regulation due to time constraints. A Hannam 2 District association official explained, "We submitted a building review plan reflecting Seoul City’s opinions as much as possible, but we do not know if it will pass immediately," adding, "Whether the regulation can be avoided is beyond the association’s control."

Hannam 4 District is the largest in terms of household scale among the remaining Hannam New Town projects. It covers 119,510㎡ around 360 Bogwang-dong and is planned to be redeveloped into 2,595 apartment units. The association was established in January 2015, and in November 2018, it submitted a redevelopment promotion plan amendment to Seoul City and is awaiting approval. The project gained momentum after deciding to demolish the recently controversial Shindonga Apartments. Currently, the association president position is vacant, and efforts are underway to form the association’s executive body by recruiting election management committee members. A representative from a real estate agency in Bogwang-dong said, "Compared to other districts, District 4 has almost no share splitting and fewer association members, so it has the largest general sale volume," adding, "The investment profitability is good, so the project progress should not be a problem."

Hannam 5 District is currently preparing an amendment to the redevelopment promotion plan, which is expected to accelerate the project. This site covers 186,781㎡ around 60 Dongbinggo-dong and plans for 2,359 apartment units. Since Hannam 4 and 5 Districts are adjacent, Seoul City plans to announce the approval of the redevelopment promotion plan amendment in a way that enhances the connectivity between the two districts, working with public architects.

The maintenance industry expects that redevelopment projects in Hannam New Town’s Districts 2, 4, and 5 will attract many construction companies to bid due to their excellent location and profitability. As redevelopment sites are decreasing due to government regulations, securing the large-scale Hannam New Town redevelopment rights is likely to change the landscape of redevelopment projects. An industry insider said, "Hyundai Engineering & Construction, which won the contract for Hannam 3 District, is aiming for additional contracts in this area," adding, "GS Engineering & Construction, Daelim Industrial, Daewoo Engineering & Construction, and Lotte Engineering & Construction are also preparing to secure project rights."

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