"5 Failed Bids"... Increasing Landmark Housing at Sangam DMC to Enhance Project Viability

The Seoul Metropolitan Government is putting the landmark site in Sangam DMC, Mapo-gu, which has remained without an owner for 20 years, back on the market with improved project feasibility. The plan is to increase the residential ratio, reduce the proportion of lodging and convention facilities, and relax bidding participation requirements.

On the 25th, Seoul held the Urban and Architectural Joint Committee and announced on the 26th that it had approved a revision to the 'Sangam Residential Development District Unit Plan Decision' for the Sangam DMC landmark site.

The Sangam DMC landmark site covers a total area of 37,262㎡ (approximately 11,000 pyeong) around Sangam-dong 1645 and 1246. Seoul plans to build a high-tech mixed-use business center with a landmark building of 50 floors or more on this site. Through this, the city aims to revitalize the western region's economy and strengthen the central functions of the DMC area. The target completion year is 2030.

Between 2004 and 2016, four attempts were made to sell the site, but the project never commenced. In 2008, there was a plan to construct a 133-floor building with a project cost of 3.7 trillion won, but Seoul Light Tower, composed of 25 investors including Daewoo Construction, faced difficulties in securing funding. Ultimately, the sales contract was canceled in 2012, and the site remained vacant. A fifth sale attempt was made in June this year but failed again due to no bidders.

In response, Seoul decided to actively incorporate opinions from the real estate industry and experts to enhance both project feasibility and public interest. First, to improve feasibility, the residential facility ratio will be increased from below 20% to below 30%. Residential facilities include apartments and officetels. Conversely, the lodging facility ratio will be lowered from above 20% to above 12%. Additionally, the ratio for cultural and assembly facilities will be reduced from above 5% to above 3%. The essential facility for cultural and assembly facilities, the ‘International Convention,’ is specified to be installed on the ground floor as a ‘specialized conference facility’ under the 「Act on the Promotion of the International Conference Industry」. Furthermore, to secure public interest, the ratio for other designated uses such as office, broadcasting and telecommunications facilities, and research institutes will be expanded from above 20% to above 30%.

In addition, Seoul plans to form an expert advisory group in November to discuss relaxing participation conditions such as the SPC establishment period and capital acquisition ratio. Once this process is completed, the city plans to reannounce the land supply notice in December.

Seoul will receive land purchase applications from the private sector, select a preferred negotiation partner, and then proceed to contract negotiations. Afterward, the private buyer will prepare detailed architectural plans and submit a district unit plan (detailed development plan) application after consulting with the DMC management advisory group. This district unit plan will be reviewed by the Urban and Architectural Joint Committee and then officially announced.

Kim Tae-gyun, Director of the Seoul Economic Policy Office, said, “We expect investment conditions to improve significantly with this district unit plan revision,” and added, “We hope many domestic and international investors will participate.”

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