Less Than a Year Later... Eunma Apartment Reconstruction Payments Surge by 300 Million Won

Expansion of Community Facilities and Parking Spaces
Increased Construction Costs and Surge in Official Apartment Value Reflected
Smooth Project Expected Despite Estimated Reconstruction Ratio of 83%

It has been revealed that the amount Eunma Apartment union members in Gangnam-gu, Seoul, who are undergoing a reconstruction project, will have to pay additionally to receive a new apartment allocation increased by about 300 million won in less than a year. As a result, the estimated ratio reflecting the profitability of the reconstruction project has decreased somewhat. However, the market evaluates that the reconstruction project is still viable, considering the location of the complex and the expected rise in housing prices after reconstruction.

According to industry sources on May 21, the Eunma Apartment union released the estimated additional payment figures to its members ahead of the regular general meeting. If a member who owns a 76-square-meter (31-pyeong) unit applies for the same size in the new allocation, the estimated additional payment is about 421.05 million won. In a preliminary survey conducted last September, this amount was estimated at about 230 million won, meaning it has increased by around 190 million won.

If a member with an 84-square-meter (34-pyeong) unit applies for the same size, the estimated additional payment is about 319.94 million won. Compared to the previous estimate of 180 million won last year, this is about 140 million won higher. For those applying for a 128-square-meter unit, the additional payment is expected to be 2.1 billion won or 1.8 billion won, which is more than 300 million won higher than before.

Eunma Apartment, Gangnam-gu, Seoul. 2025.10.13 Photo by Jinhyung Kang

The reasons for the increased estimated payments include the expansion of community facilities and parking spaces, and a 3.3% rise in construction costs (from 9 million won to 9.3 million won per pyeong). The increase in the officially assessed value of the apartment also played a role; the official price for this year rose by about 30%. While the appraised value is used as the standard for the original asset value in estimating the reconstruction ratio, the increase in the officially assessed value is partially reflected during the appraisal process.

Based on these calculations, the union estimated the reconstruction ratio at around 83%. The reconstruction ratio for an apartment complex is a figure comparing the value of the current apartment (the original asset) to the profit from the reconstruction project (the amount left after deducting project costs such as construction expenses from total revenue), and 100% is generally used as the benchmark for project viability.

In the past, there was a perception that it would be difficult to proceed with reconstruction unless the ratio exceeded 100%, but experts point out that in Gangnam, the apparent ratio alone is not a sufficient measure. For example, the estimated ratio for Apgujeong District 3, one of the most prominent reconstruction sites in Gangnam, is only 61%, and 41% for Apgujeong District 2. Although the additional payments required from union members during reconstruction are significant, there is a high likelihood that housing prices will rise even more after the project.

Taehee Lee, research fellow at the Korea Institute of Construction Industry, explained, "The lower estimated ratio appears to be due to conservative estimates for general sales prices and construction costs for the upcoming phases. For reconstruction complexes in Gangnam, most projects proceed smoothly even when the ratio is low, considering the potential for asset value appreciation after the project."

Eunma Apartment is currently promoting a reconstruction project that will rebuild the complex into 5,893 units with up to 49 floors, following the confirmation of a revised maintenance plan last year. By applying the station area floor area ratio exemption, some public housing units have also been added for the first time among private maintenance projects. The union aims to obtain project implementation approval this year, management disposition approval next year, and to begin construction in 2030.

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