"Due to the burden of 종부세... Shinbanpo 21st 1+1 Reconstruction Withdrawn"

View of apartments in the Banpo area from Namsan, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Kim Min-young] The existing 1+1 reconstruction plan for Sinbanpo 21st Complex in Jamwon-dong, Seocho-gu, Seoul has been scrapped.

An official from the Sinbanpo 21st Apartment Housing Reconstruction Maintenance Association stated, "Due to the burden of comprehensive real estate tax, more owners prefer to receive one unit instead of 1+1, so we submitted a plan to change the project implementation plan to Seocho-gu Office." Originally, large owners intended to receive two medium-sized units and use one small unit as a source of rental income, but with the increase in comprehensive real estate tax rates starting this year, their stance changed due to the heavier tax burden.

Medium-large unit owners will receive one medium-large unit instead of two medium-sized apartments, reducing the total number of units from 275 to 251, a decrease of 24 units. This is due to the strengthened capital gains tax on multi-homeowners, which has led to a reduction in reconstruction supply volume.

The original plan was to supply units by size as follows: ▷140 units under 60㎡ ▷51 units over 60㎡ up to 85㎡ ▷41 units over 85㎡, but there are expected to be changes in the unit size composition as well. The Sinbanpo 21st Apartment Housing Reconstruction Maintenance Association will pass the revised project implementation plan that modifies the number of units supplied and the number of units by size, and conduct a public inspection for residents through the district office until the 26th of this month.

Sinbanpo 21st Apartment is a complex of two buildings with 108 units, completed in 1984, located adjacent to Banpo Station on Subway Line 7. POSCO Construction is the contractor, and currently, relocation has been completed and demolition is underway.

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