Cheonghwa Apartment in Itaewon Begins Redevelopment Backed by Development Boon... Association Formation Planned for Next Year

Public Review of Maintenance Plan Underway,
Design Firm to Be Selected Next Year
Construction Company Selection in 2027...
Major Builders Show Keen Interest

The Cheonghwa Apartment complex in Itaewon, which has stood for 44 years near the United Nations Command site in Yongsan, has begun the process of redevelopment. With Yongsan Park nearby in the heart of Seoul and numerous ongoing development projects in the surrounding area, it has been reported that major construction companies are also showing interest.

On August 12, Yongsan-gu announced that it will hold a public viewing of the designation of the Cheonghwa Apartment housing reconstruction project maintenance zone and the establishment of the maintenance plan for the area of 22-2 Itaewon-dong until September 8. Cheonghwa Apartment passed a safety inspection in November 2023, received advisory input from Seoul’s Fast-Track Planning in 2024, and proposed the initiation of the maintenance plan at the end of June. In October last year, a committee was formed to promote the establishment of a reconstruction association, accelerating the project’s progress.

Perspective view of Cheonghwa Apartment reconstruction. Provided by Yongsan-gu.

The Cheonghwa Apartment committee is expected to establish the association next year and select a construction company around 2027. The reason major construction firms are interested is that, given the location and future sales prices, the project is expected to be highly profitable. A committee representative explained, "We aim to select a design firm early next year, prepare to establish the association by June, and complete it by the end of the year at the latest. Our goal is to select a construction company in 2027."

Cheonghwa Apartment is a mid-rise complex built in 1982, currently consisting of 578 units. After reconstruction, it will be transformed into a complex with up to 21 floors and 679 units. As it is located within the Namsan Scenic Special District, the building height is restricted to an elevation of 90 meters. According to the maintenance plan currently under review, large units exceeding 85 square meters will account for 85% of the total. By unit size, there will be 578 units (for association members) ranging from 98 to 162 square meters, and 101 units of 84 square meters (for general sale).

The estimated proportional allocation rate for Cheonghwa Apartment is 64%. The sales prices for association members are set at 2,245 million KRW for 98 square meters, 2,493 million KRW for 117 square meters, and 2,627 million KRW for 132 square meters. For the general sale units, the 84 square meter units are priced at 2,088 million KRW (65 million KRW per 3.3 square meters). If association members choose the same unit size, the estimated additional contribution is expected to be in the 300 to 400 million KRW range. These figures may change as the project progresses.

As the reconstruction project has gained momentum, transactions for these apartments have also become more active recently. On August 4, a 115 square meter unit was sold for 3,110 million KRW, and on July 8, a 174 square meter unit was sold for 3,820 million KRW. The adjacent "The Parkside Seoul" complex, which will redevelop the United Nations Command site as a mixed-use development, is scheduled for completion in early 2027. Additionally, the "Yongsan Park East Zone District Unit Plan" has been established, allowing development of up to 20 floors on the U.S. Army transportation site below the complex.

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