Seongsu Boom Spurs Jayang... Jayang-dong Redevelopment Accelerates [Real Estate AtoZ]

Jayang 7 District Expects Project Implementation Approval Next Year

Jayang 4 District Achieves Required Consent Rate for Association Establishment

Transactions Occurring Around 70 Million Won per 3.3 Square Meters (Pyeong)

Following the Seongsu Strategic Maintenance Zone, the Jayang-dong area in Gwangjin-gu, Seoul is emerging as a key redevelopment site along the Hangang Belt. This is because the area offers views of the Han River and is adjacent to the Seongsu Strategic Maintenance Zone, which is considered a major redevelopment project within the Hangang Belt, raising expectations for future value appreciation. Recently, demand from investors has been concentrated on Jayang 4-dong Area A and Jayang 7 District, where redevelopment projects are gaining momentum.

According to the maintenance industry on May 7, the Jayang 7 District housing reconstruction and maintenance project completed both a resident briefing session and a consultation with the Gwangjin District Council last month, both of which were required for changes to the maintenance plan and the maintenance area. If the revised plan is submitted to the Seoul City Urban Planning Committee in June, the association expects to obtain the project implementation approval around November next year.

The Jayang 7 District covers 54,895 square meters in the Jayang-dong area of Gwangjin-gu and is a prime location situated between Konkuk University Station (Lines 2 and 7) and Jayang Station (Line 7), making it a double-station area. In the future, a large-scale apartment complex with 1,089 households will be built here, ranging from three basement floors to 46 floors above ground. Last year, at a regular general meeting, it was decided to incorporate approximately 10,000 square meters on the eastern roadside into the project area, increasing the number of units from 917 to 1,089. As a result, the proportional rate—which indicates project profitability—rose from 113.16% to 128.48%, leading to a significant improvement in business feasibility. A proportional rate above 100% is generally considered favorable for project viability.

This project faced delays after receiving association establishment approval in 2021, as it was affected by Gwangjin-gu’s integrated development policy and became subject to the maintenance area sunset system. The sunset system removes the area designation if the project is not promoted within a set period. However, the association was able to resolve the sunset system issue by shortening the process period through integrated reviews.

'Jayang 4-dong Area A,' which is in the early stages of redevelopment, is also rapidly gaining traction. On May 1, Jayang 4-dong Area A secured the legally required 75% consent rate to establish an association. This was achieved just 23 days after the collection of consent forms began, setting the shortest period among redevelopment sites nationwide.

The Jayang 4-dong Area A project aims to develop 139,130 square meters in Jayang-dong into an apartment complex with up to 49 floors and 2,999 units. This is the largest redevelopment site in Gwangjin-gu and is adjacent to the fourth district of the Seongsu Strategic Maintenance Zone, which is why it is also known as 'Seongsu District 5.' It is regarded as a prime riverside site due to its excellent access to Ttukseom and its five-minute walking distance from Jayang Station.

With both sites expected to be transformed into large-scale apartment complexes along the Han River, investment demand is already surging in the market. For example, a Dongik Townhouse unit in Jayang 4-dong Area A, with an exclusive area of 64.5 square meters (land share: 63.3 square meters), changed hands for 2.15 billion won this February. Currently, single-family and multi-family homes with land shares of 112 square meters and 72 square meters are listed for 2.38 billion won and 1.92 billion won, respectively. In Jayang 7 District, a townhouse with an exclusive area of 46.42 square meters is on the market for 1.8 billion won.

The Jayang-dong area is drawing attention as a cost-effective investment destination, as it is adjacent to the Seongsu Strategic Maintenance Zone—a major redevelopment site within the Hangang Belt—allowing for synergy in project implementation, while prices remain about 1 billion won lower than those in Seongsu. The head of A Real Estate Agency in Gwangjin-gu explained, "Currently, only estimated appraisal values are available for Jayang 4-dong Area A, with an added premium of about 200 to 300 million won," adding, "The price per pyeong is around 70 to 80 million won, and prices in Jayang 7 District are set at a similar level."

However, there is advice to consider the risks associated with each project stage. Kim Jaekyung, head of Tumi Real Estate Consulting, said, "Jayang 4-dong Area A is still in the early stages, and for Jayang 7 District, there are still regulatory variables to be addressed due to the nature of reconstruction projects," adding, "It is important to consider both the speed of the project and potential policy changes following the local elections when deciding how to approach these investments."

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