Apartment Remodeling Gains Momentum in Sanbon Area... Consecutive Record High Prices Reported

Mugunghwa Jugong 1 Complex Union Establishment Initiative Launched
Safety Inspections Upcoming for Ureuk Jugong 7 Complex and Yulgok Jugong 3 Complex
Gunpo City Also Promises Project Support... Complexes Piling Up Rapidly
Project Progress Boosts Prices of Nearby Complexes Significantly

[Asia Economy Reporter Ryu Tae-min] As the remodeling projects of aging apartments in Sanbon New Town, Gunpo City, Gyeonggi Province, accelerate, apartment prices in the area are hitting new record highs every day. Following the Uruk Jugong 7 Complex in Sanbon-dong, Gaenari Jugong 13 Complex recently received approval for the establishment of a union, the first hurdle in the remodeling project. Besides these complexes, other apartments in Sanbon that are pushing for remodeling union establishment are also speeding up their project progress.

According to the maintenance industry on the 26th, Mugunghwa Jugong 1 Complex in Geumjeong-dong, Gunpo City, Gyeonggi Province, has begun actively promoting the establishment of a remodeling union by collecting resident consent forms for union establishment. Built in 1992, this complex consists of 15 buildings with 12 and 15 floors, totaling 1,329 households, with a floor area ratio of 212% and a building coverage ratio of 16%. A representative of the promotion committee said, "From the preliminary survey for union establishment, residents' approval rates have been high, so the project is expected to proceed smoothly," adding, "The goal is to complete the union establishment approval within this year."

Other complexes in the area are also accelerating remodeling efforts. Dongsung Baekdu and Geukdong Baekdu Apartments, which are pursuing integrated remodeling, have achieved a preliminary consent rate of 50% and are preparing for union establishment. Both complexes were completed in 1993, with Dongsung Baekdu having 460 households and Geukdong Baekdu 472 households. Nearby, Eulji Samik Hanil Apartment is also preparing for union establishment by forming a remodeling promotion committee. This complex, completed in 1993, has 818 households.

Additionally, Uruk Jugong 7 Complex and Yulgok Jugong 3 Complex in Geumjeong-dong, which are the fastest progressing projects in the area, have completed union establishment and are currently preparing for safety inspection procedures. Gaenari Jugong 13 Complex, with 1,778 households, also received remodeling union establishment approval last month.

As a result, the number of remodeling promotion complexes in the Sanbon area has increased to a total of 10. Most apartments in Sanbon, completed in the early to mid-1990s, are aging complexes reaching their 30th year this year. Furthermore, with Gunpo City promising support for remodeling projects, more complexes are expected to join the projects.

As remodeling projects proceed smoothly, apartment prices in the area are also rising. An 80㎡ (exclusive area) unit in Yulgok Jugong 3 Complex changed hands for 568 million KRW on the 7th. The reported price for the same size in January this year was 450 million KRW, meaning the price has risen by over 100 million KRW in half a year. An 84㎡ unit in Uruk Jugong 7 Complex was traded for 600 million KRW on the 18th, about 200 million KRW higher than the January reported price of 420 million KRW this year.

Due to the government's continued strong regulations on reconstruction projects, there is an analysis that more complexes are pursuing remodeling, which faces relatively fewer restrictions. Reconstruction has become difficult to pass safety inspections even after exceeding the 30-year standard construction age due to stricter safety inspection criteria, making it hard to receive passing grades such as D (conditionally allowed) or E (poor). However, remodeling can be pursued if the building is over 15 years old. For structural safety inspections, vertical extensions are possible if the maintenance grade (A~C) is B or higher, and horizontal extensions are possible if the grade is C or higher.

Professor Seo Jin-hyung of Gyeongin Women's University (President of the Korean Real Estate Society) said, "As government regulations have strengthened, making reconstruction projects practically difficult to proceed, many aging complexes are turning to remodeling," adding, "Especially complexes with high floor area ratios often pursue remodeling due to low profitability."

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