"Relaxation of Reconstruction Regulations" After Yoon's Election... Growing Expectations Among Residents in Mokdong and Godeok Reconstruction Areas

Visit to Mokdong Sinsigaji 9 Complex and Myeongil-dong Godeok Jugong 9 Complex
Residents "Have Expectations for Reconstruction"
Cases of Price Increase Also Observed

On the 14th, we visited the Mokdong New Town 9th Complex apartment in Yangcheon-gu, Seoul. With Yoon Seok-yeol, the People Power Party candidate who promised to ease reconstruction regulations, becoming the president-elect, residents here said, "Our expectations for reconstruction have grown."

[Asia Economy Reporter Hwang Seoyul] The anticipation for revitalizing reconstruction after the presidential election is also being felt on the ground. Resident A of Mokdong New Town 9th Complex in Yangcheon-gu, Seoul, where reconstruction was halted, said, "If (President-elect Yoon Seok-yeol's) pledge is fulfilled as promised, we could have hope for reconstruction." B, the head of a real estate agency office in the area, reported, "Some owner-occupiers who were debating whether to sell their homes withdrew their listings after seeing the election results." Similarly, officials related to the halted project at Godeok Jugong 9th Complex in Myeongil-dong, Gangdong-gu, said, "There have been inquiries about purchasing related to reconstruction after the presidential election."

The reason residents in these areas have hope is due to Yoon's pledge to exempt apartments over 30 years old from detailed safety inspections. Both complexes were blocked from proceeding with reconstruction during the second detailed safety inspection. Shinsigaji 9th Complex (completed in 1987) and Godeok Jugong 9th Complex (completed in 1985) meet the conditions for safety inspection exemption if Yoon's pledge is realized.

There are also cases where asking prices have risen due to reconstruction expectations. The asking price for a Mokdong Shinsigaji 9th Complex unit (128㎡ exclusive area), which was traded for 1.98 billion KRW last month, remains around 2.2 billion KRW. Similarly, the asking price for a Godeok Jugong 9th Complex unit (103㎡), which was traded for 1.35 billion KRW in January, ranges from 1.37 billion to 1.55 billion KRW.

Expectations have grown further since the ruling People Power Party introduced its first bill after the presidential election, which includes adjustments to the safety inspection evaluation criteria. This bill significantly increases the evaluation weight of residential quality factors such as parking space, sunlight environment, and indoor environment suitability, thereby raising the likelihood of aging apartments passing safety inspections. However, experts caution that while easing reconstruction regulations may raise expectations, it is difficult to predict market conditions. Song Seunghyun, CEO of City and Economy, stated, "The asking prices in reconstruction complexes will rise centered on sellers," but added, "Due to buyers' perception of price peaks and macroeconomic uncertainties, there will be limits to active transactions."

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