Complexes Undergoing Two Transformations from ‘Reconstruction to Remodeling’ Emerge... Remodeling Fever Sweeps Nationwide

Approval for Remodeling Association Establishment
After being sold as 'Sinhaecheong' in 1977
Reconstructed once in 1999
Remodeling promoted again after 21 years
72 complexes nationwide promoting remodeling as of May

[Asia Economy Reporter Ryu Tae-min] An apartment in the Gangnam area of Seoul, which has already undergone reconstruction once, is attracting attention by pushing for remodeling after about 20 years. If the project is successfully completed, it is expected to be the first case in Seoul where an apartment has undergone both reconstruction and remodeling.

According to the maintenance industry on the 13th, Gangnam-gu Office recently approved the establishment of a remodeling association for Daechi Hyundai Apartment (Daechi Hyundai) in Daechi-dong, Gangnam-gu. Located at 974 Daechi-dong, Gangnam-gu, Daechi Hyundai is an apartment complex with a maximum of 24 floors and 630 households. The complex is situated between Daechi Station on Subway Line 3 and Samseong Station on Line 2. Approval for the remodeling association requires the consent of two-thirds of all owners and more than half of the owners in each building.

The complex plans to remodel into a new apartment complex with 714 households from 630 households through vertical extension after the association approval. Lee Young-jun, head of the Daechi Hyundai remodeling association, said, "We plan to speed up the project by holding a general meeting to select a construction company in early October and simultaneously applying for a safety inspection."

What is notable is that this apartment has already undergone reconstruction once. The apartment was first built on this site in 1977. It was the ‘Shinhaecheong Apartment’ with 320 households, built as part of the Yeongdong district development in Gangnam. It was completed the year after the first move-in to Apgujeong district (1976), which is known as the symbol of Gangnam development. Shinhaecheong, a low-rise apartment with five floors, was reborn as the current Daechi Hyundai through reconstruction in 1999, 22 years after completion. Ultimately, even after reconstruction, 21 years have passed, far exceeding the remodeling eligibility period (15 years). If remodeling is realized, it will be the first complex in Gangnam to undergo both reconstruction and remodeling.

An official from nearby A Real Estate Agency said, "Large construction companies such as GS Construction and Lotte Construction are actively competing to secure construction rights by putting up banners." As remodeling efforts have intensified, the price of a 59㎡ (exclusive area) unit, which was 1.35 billion KRW a year ago, has risen to 1.64 billion KRW, according to the brokerage industry. Compared to the initial sale price of 702,000 KRW for a 25-pyeong unit in Shinhaecheong, the price has increased 233 times in 44 years.

An industry insider explained, "Apartments built in the mid to late 1990s, like Daechi Hyundai, mostly have high existing floor area ratios, making it difficult to proceed with reconstruction projects even when the reconstruction eligibility period (30 years) arrives," adding, "This structure inevitably leads to an increase in remodeling projects." In fact, in the Gangnam area, including Daechi Hyundai, seven complexes have established remodeling associations so far.

Remodeling projects are also increasing nationwide. According to estimates by the Korea Remodeling Association, as of May, the number of apartment complexes pursuing remodeling projects nationwide totaled 72 complexes with 53,890 households. This is a steady increase from 37 complexes at the end of 2019 and 50 complexes as of last October.

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