Is the 4th Complex Also Being Implemented... Final Sprint for 'Gwacheon Reconstruction'

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[Asia Economy Reporter Lee Chun-hee] The reconstruction of aging mid-rise apartments in the Gwacheon-si area of Gyeonggi Province, known as the 'quasi-Gangnam area,' is rapidly gaining momentum. Recently, Jugong Complex 4 received project implementation approval, marking a significant milestone in the project, and other complexes are rushing to establish associations within the year to avoid regulations. As the projects gain momentum, prices continue to remain strong despite large-scale supply in surrounding areas such as Gwacheon Knowledge Information Town and government office idle sites.

According to industry sources on the 3rd, Gwacheon City announced the project implementation plan approval for the Jugong Complex 4 reconstruction in Byeolyang-dong on the 1st. Jugong Complex 4 is a 15-story mid-rise apartment complex with 1,110 households built in 1983. With this project implementation approval, the complex will be transformed through reconstruction into a new apartment complex with 11 buildings, ranging from 3 basement floors to 35 floors above ground, totaling 1,437 households.

The new apartments will be distributed by exclusive area as follows: ▲49㎡ 56 units ▲59㎡ 203 units ▲74㎡ 346 units ▲84㎡ 672 units ▲99㎡ 95 units ▲106㎡ 30 units ▲118㎡ 32 units ▲110㎡P 1 unit ▲126㎡P 2 units. Except for the units allocated to association members, all remaining units will be sold to the general public without any rental units. Previously, the association selected GS Construction as the contractor in 2018.

The complex is considered a prime location within Gwacheon City. A large supermarket is located right in front, and the Government Complex Gwacheon Station on Seoul Metropolitan Subway Line 4 is close to the complex.

With Complex 4 receiving project implementation approval, it is expected that reconstruction efforts for other mid-rise complexes in Gwacheon City will also accelerate. Complex 5, adjacent to Complex 4, received association establishment approval in January, and the promotion committees for Complexes 8 and 9 in Burim-dong were approved in May. Complex 10 in Jungang-dong, which had been stagnant for three years since the promotion committee approval in 2017, is also recently accelerating its project.

Nearby real estate agencies observe that these movements are closely related to government reconstruction regulations. Due to the government's June 17 real estate measures, reconstruction complexes that fail to obtain association establishment approval within the year impose a two-year residence obligation on association members who wish to receive new apartment move-in rights. In fact, Complexes 8 and 9, which experienced conflicts over land share issues during the integrated development process, are reportedly seeing active consent gathering for association establishment approval recently.

The exterior view of 'Gwacheon Weverfield' in Gwacheon-si, Gyeonggi, scheduled for occupancy in January next year (Photo by Lee Chunhee)

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Once these complexes undergo reconstruction, the reconstruction of the 12 aging Jugong apartment complexes in Gwacheon City will be completed. Earlier, in the early 2000s, Complex 3 (Raemian Sure) and Complex 11 (Raemian Eco Palace) were the first to complete reconstruction projects in Gwacheon City, followed by ▲Complex 1 (Prugio Summit) ▲Complex 2 (Weberfield) ▲Complex 6 (Gwacheon Prestige Xi) ▲Complex 7-1 (Gwacheon Central Prugio Summit) ▲Complex 7-2 (Raemian Central Suite) ▲Complex 12 (Gwacheon Centreville), which have either completed projects or are currently under construction.

Amid expectations for reconstruction, prices have been steadily rising. Most of the project complexes have recently been setting new record prices. A 60㎡ unit in Complex 4 was traded for 1.3 billion KRW in July, up 300 million KRW from the previous transaction in September last year. A 124㎡ unit in Complex 10 was traded for 2.05 billion KRW in July, surpassing 2 billion KRW for the first time among non-newly built but reconstruction-pursuing complexes.

A 104㎡ unit in Complex 5 also recorded a new high price of 1.58 billion KRW in July, and units in Complex 8 (73㎡ at 1.38 billion KRW) and Complex 9 (82㎡ at 1.35 billion KRW) also broke their highest price records in July.

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