"'Enjoy the 'Large Complex Premium'... Integrated Remodeling Craze Sweeps the Metropolitan Area with Neighboring Complexes Joining Hands'"

Increase in Integrated Apartment Complexes in Seoul Nowon-gu and 1st Generation New Towns
Equipped with Various Community Facilities... Rising Preference for Large Complex Premiums
Enhancing Profitability and Potential for Transformation into Landmarks

[Asia Economy Reporter Ryu Tae-min] As government regulations on reconstruction and redevelopment projects increase preference for remodeling, the number of apartment complexes pursuing integrated remodeling is rising. The larger the scale, the higher the feasibility of remodeling projects, and they can be transformed into landmark apartments, boosting market value. In particular, small-scale complexes can now have various community facilities that they previously lacked, increasing the preference for the 'large complex premium.'

According to the industry on the 14th, small-scale apartments in Wolgye-dong, Nowon-gu, Seoul, such as Cheongbaek 3 Complex (458 households) and Cheongbaek 4 Complex (520 households), are recently pursuing integrated remodeling. These complexes were completed in 1998 and meet the building age requirement (15 years) for remodeling. Due to their close geographical proximity and small scale, residents are known to prefer integrated remodeling projects over individual ones.

These complexes are currently at the stage where apartment owners have established integrated remodeling promotion committees aiming to form associations and are gathering resident consent. One resident explained, "Several owners with the will for integrated remodeling have gathered, and the promotion is proceeding quickly," adding, "Within less than a month, the resident consent rate has exceeded 30%."

Outside Seoul, complexes in the first-generation new towns are also beginning to pursue integrated remodeling. The Hugok 11 and 12 Complexes in Ilsandong, Ilsanseo-gu, Goyang-si, Gyeonggi Province, started full-scale integrated remodeling projects on the 10th. Currently, these apartments have a total of 1,554 households and plan to create a large complex of about 2,000 households through integrated remodeling. Notably, Hugok 11 and 12 Complexes attempted integrated remodeling in 2011, but the project was abandoned due to low expectations in the real estate market at the time. Recently, as housing prices have soared, the feasibility has increased, prompting renewed efforts.

The recent popularity of integrated remodeling is to enjoy the 'large complex premium.' Creating large-scale apartment complexes allows for various community facilities such as fitness centers, libraries, and guest houses, enhancing residents' convenience. Additionally, with a significant increase in the number of households, the project feasibility improves, enabling transformation into landmark apartments constructed by 'top-tier construction companies.' As the number of residents increases, the shared maintenance costs per resident can also be reduced, making it highly preferred by residents.

To enjoy these benefits, even small-scale apartments consisting of one or two buildings are turning to integrated remodeling. In the Jamwon-dong area of Seocho-gu, Seoul, complexes such as Banpo Hanshin Tower (250 households), Blue Hill House (125 households), Jamwon Central Heights (126 households), and Kim's Village (160 households) have been pursuing integrated remodeling since the first half of this year. These complexes have excellent locational advantages but are undervalued as standalone apartments, and integrated remodeling appears to be a way to resolve this.

An industry official said, "Compared to individual projects, integrated remodeling offers more general sale units, higher project feasibility, and the opportunity to enhance brand power, making it more preferred by both construction companies and owners."

However, integrated remodeling has the downside that it can be difficult to obtain resident consent due to differing circumstances in each complex, which may hinder project progress. In fact, in 2018, five complexes including Ichon-dong Kolon Apartment, Gangchon Apartment, Hangaram Apartment, Hangang Daewoo Apartment, and Woosung Apartment pursued integrated remodeling but failed due to unresolved differences. Currently, Hangaram Apartment is pursuing remodeling individually.

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