'Gwangmyeong Jeonse War'... 2,000 Households in Cheolsan Jugong 8 and 9 Complexes Also Soon to Relocate

Cheolsan Jugong Complex 8 and 9 Reconstruction Management Disposition Approval
Relocation May Begin as Early as Late October
Rental Listings Deplete Amid Overlapping Demand from Nearby Gwangmyeong New Town Relocations
'Zero Rent' Complexes Also Emerging

[Asia Economy Reporter Onyu Lim] The Gwangmyeong area in Gyeonggi Province is suffering from a shortage of rental properties due to redevelopment and reconstruction relocations. Recently, simultaneous relocations have been underway in redevelopment zones within the old town new town, and as the reconstruction of aging apartments in the housing district accelerates, rental listings for nearby apartments and detached houses are scarce, causing prices to soar.

According to Gwangmyeong City and local real estate agencies on the 17th, the Gwangmyeong Cheolsan-dong Jugong Complex 8 and 9, which are pursuing integrated reconstruction, recently received approval for their management disposition plan. This apartment complex consists of 1,484 households in Complex 8 and 580 households in Complex 9, totaling 2,064 households. The number of association members is 2,040. Through reconstruction, it will be transformed into a large complex with 3,801 households ranging from two basement floors to 40 floors above ground. GS Construction will be in charge of construction. With the approval of the management disposition plan, the relocation process for this apartment complex is expected to begin in earnest soon.

As a result, amid the existing rental shortage caused by relocations in redevelopment zones within the new town, the additional relocation demand from Jugong Complex 8 and 9 has overlapped, leading to a scarcity of rental listings not only for apartments in the Gwangmyeong area but also for nearby detached houses. According to the weekly apartment trend report by the Korea Real Estate Board, apartment rental prices in the Gwangmyeong area rose by 0.34% in the first week of this month and increased by 0.35% in the second week. This is more than three times the rental price increase rate in Seoul apartments (0.10%).

Currently, among the redevelopment zones within Gwangmyeong New Town, Zones 10 and 2 have recently completed relocation and have entered the demolition preparation and demolition stages, respectively. Previously, Zone 5 began relocation in April, Zone 4 started relocation this month, and Zone 1 will begin relocation procedures at the end of this month. Combined, these zones have generated relocation demand for more than 9,000 households within Gwangmyeong New Town alone.

Nearby, there are even complexes with "zero rental listings." A real estate agent in Cheolsan-dong said, "With reconstruction and redevelopment proceeding simultaneously, complexes like Cheolsan Raemian Xi have no rental listings at all," adding, "There are customers looking for properties before the relocation of Jugong Complex 8 and 9 begins, but since there are no listings, contracts are completely impossible." Because of this, rental demand is spreading to nearby areas such as Guro and Geumcheon districts in Seoul, as well as surrounding regions like Ansan, Anyang, and Siheung in Gyeonggi Province. A resident of Gwangmyeong Zone 1 said, "I looked into nearby row houses, but since there were no listings and prices were high, I had no choice but to rent a villa in Ansan."

Policies tightening the non-taxable capital gains requirements for primary residences to restrict multi-homeowners, along with increasing demand waiting for "lottery subscription" opportunities, are also worsening the rental shortage. Additionally, with reduced loan limits due to the June 17 and July 10 measures, buyers who gave up on purchasing have turned to renting, and the two-year residency obligation for reconstruction association members overlaps, so the scarcity of listings is expected to continue for the time being.

An industry insider said, "Gwangmyeong is adjacent to the Seoul city boundary and has high actual residence demand due to commuting to Guro Digital Complex," adding, "Due to redevelopment and reconstruction issues, rental prices will continue to rise and listings will remain scarce for the foreseeable future."

Meanwhile, for Jugong Complex 8 and 9, which have received management disposition approval, actual transaction prices for sales are soaring. The 59㎡ (exclusive area) unit, which was around 849 million KRW last July, rose to 1.05 billion KRW last month. There are currently almost no available listings. Gwangmyeong is a speculative overheated district where only owners who have held the property for 10 years and lived in it for 5 years can transfer their association membership rights.

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