Bundang Reconstruction Heats Up

[Image source=Yonhap News]

Jeongdeun Village Woosung 4 Complex

Establishment of Promotion Committee, Joining the Federation

[Asia Economy Reporter Kim Min-young] Jeongdeun Village Woosung 4 Complex in Jeongja-dong, Bundang-gu, Seongnam-si, Gyeonggi Province has joined the Bundang Reconstruction Federation, joining the momentum of reconstruction promotion in the first-generation new towns. With growing expectations for the easing of reconstruction regulations after the presidential election, housing prices in Bundang are also rising, centered on reconstruction promotion complexes.

According to the maintenance industry on the 15th, Jeongdeun Village Woosung 4 Complex in Jeongja-dong, Bundang launched a reconstruction promotion preparation committee at the end of March and joined the Bundang Reconstruction Federation. As a result, a total of 15 complexes, including this one, Seohyeon-dong Simbeom Complex, and Sunae-dong Yangji Village, have joined the Bundang Reconstruction Federation.

The movement to promote reconstruction in Bundang began in October last year when four complexes in Seohyeon-dong Simbeom Complex?Hanyang, Woosung, Samsung Hanshin, and Hyundai apartments?jointly formed a reconstruction promotion preparation committee. Then, in early March, six complexes in Yangji Village, where former Gyeonggi Governor Lee Jae-myung resides, also formed a reconstruction promotion preparation committee, announcing plans for integrated reconstruction. The federation held a citizen resolution rally in March, urging the city of Seongnam to promptly revise the '2023 Urban Maintenance Basic Plan,' as Bundang is not designated as a redevelopment area in the current plan.

Among the representative regulations that slow down reconstruction promotion are safety inspections and the reconstruction excess profit recovery system. However, with growing expectations for regulatory easing under the new government, housing prices in Bundang, where reconstruction issues exist, are also stirring. According to KB Real Estate, as of the 11th, apartment sale prices in Bundang-gu, Seongnam-si, rose 0.09% compared to the previous week. Apartment prices, which were flat at 0.00% on March 14, right after the presidential election, shifted to an upward trend with 0.08% on March 21, 0.11% on March 28, and 0.12% on April 4, showing four consecutive weeks of increase.

In particular, Bundang housing prices are rising mainly around Seohyeon-dong Simbeom Complex, which formed its first reconstruction promotion preparation committee last year. According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, on the 1st of this month, a Samsung Apartment in the Simbeom Complex with an exclusive area of 171.5㎡ (15th floor) was traded at 2.49 billion KRW, 790 million KRW higher than the 1.7 billion KRW recorded in October 2020. On the 5th, a Hanyang Apartment in Seohyeon-dong with an exclusive area of 85㎡ was also traded at 1.6 billion KRW, 120 million KRW higher than the previous high price.

The number of listings has only slightly increased. According to Asil, a real estate big data company, while listings in Gyeonggi Province increased by 5.9% from March 9, the presidential election day, to the present, listings in Bundang-gu increased by only 1.7%. This contrasts with the adjacent Suji-gu in Yongin City, where listings increased by 8.6%.

However, some voices suggest that due to this market atmosphere, a cautious approach to easing reconstruction regulations is necessary. Won Hee-ryong, nominee for Minister of Land, Infrastructure and Transport, recently stated, "There is no regulatory easing or supply expansion that could send wrong price signals in the Yoon Seok-yeol administration's blueprint," adding, "Supply will be managed and controlled in a feasible direction."

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