[Report] "Professionals in Their 30s and 40s With at Least 2 Billion Won in Cash Are Snapping Up Properties"... Area Buzzing as 'Management Disposition Approval' Granted After 23 Years

On the 21st, we visited Noryangjin New Town in Dongjak-gu, Seoul. After walking for about 10 minutes from Noryangjin Station on Subway Line 9, we arrived at Noryangjin District 5, which was surrounded by tents ahead of demolition, where old houses were visible between the construction barriers. On either side of a narrow alley, there were empty buildings in District 5 that had completed relocation, facing off against single-family homes in District 1 where residents still lived.

Despite the bleak atmosphere, the residents all appeared excited. This was due to the news that Noryangjin District 1 had received management disposition approval. A resident, Mr. A (65), said, "Since District 6, the first to offer units in the New Town, sold out completely, members have very high expectations for the redevelopment of District 1."

Residential area around Noryangjin 1 District, Dongjak-gu, Seoul, on the 21st. Photo by Lee Jieun

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With District 1 having crossed the critical threshold for redevelopment, the entire Noryangjin area is abuzz. Districts 6 and 8 have begun unit allocations in sequence, and the remaining districts have also started demolition and resident relocation, making the redevelopment of about 9,000 households into a new city-scale project a reality.

According to the maintenance industry on the 22nd, the Dongjak-gu District Office granted management disposition approval for Noryangjin District 1 the previous day. This comes 23 years after it was designated as a redevelopment promotion zone in 2003.

The Noryangjin District 1 project covers an area of 132,132 square meters in Dongjak-gu, Noryangjin, and will create 3,103 apartment units. With 962 cooperative members, it is a large-scale site, and 527 members have applied for the 1+1 allocation option-the highest number among redevelopment projects in Seoul. The total construction cost is 1.0927 trillion won, with a per-pyeong (3.3 square meter) construction cost of 7.3 million won.

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Once the project is completed, the area is expected to be transformed into a large-scale apartment complex with buildings up to 49 stories tall. The contractor is POSCO E&C, and the complex has been named "Otiere Dongjak," reflecting the high-end "Otiere" brand. The cooperative plans to begin resident relocation in July and aims to complete the process within six months to one year.

Noryangjin District 1 is the largest among the eight districts in Noryangjin New Town and is highly regarded as the flagship project due to its proximity to Noryangjin Station on Lines 1 and 9. Notably, it was the last among the eight districts to receive management disposition approval. This allowed for the transfer of cooperative member status, which has attracted a great deal of investment interest. Kim Jaekyung, director of Tumi Real Estate Consulting, explained, "Noryangjin District 1 is considered the central axis of the New Town due to its outstanding location."

On the 21st, residential areas near Noryangjin District 1 and District 5 in Dongjak-gu, Seoul. The buildings within Noryangjin District 5, where relocation has been completed, are surrounded by tents. Photo by Lee Ji-eun

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With demand surging, units that confer the right to move into an 84-square-meter (exclusive area) apartment have recently been traded for around 2.5 billion won, with a premium of about 1.5 billion won. According to the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system, on the 17th of this month, a multi-family villa with an exclusive area of 72.59 square meters (21 pyeong) and a land share of 49 square meters (14.8 pyeong) was sold for 2.2 billion won. A 1+1 property, which grants rights to both an 84-square-meter and a 59-square-meter unit, was listed with a base price of 1.7 billion won and a premium of 1.7 billion won, totaling an asking price of 3.4 billion won.

Despite the high asking prices, local real estate agencies agreed that most listings have been sold as the management disposition approval approached. The manager of Real Estate Agency A in District 1 said, "Many elderly owners put up urgent listings as the approval became imminent," adding, "Cash-rich professionals in their 30s and 40s, each holding at least 2 billion won, quickly snapped up the available properties."

However, there is still a possibility that additional properties with several hundred million won in premiums will be listed on the market after management disposition approval. This is because owners of a single home who have met the requirements of five years residency and ten years ownership can still transfer their cooperative member status even after the approval. The manager of Real Estate Agency B in District 1 said, "There is no reason for single-home owners who meet these requirements to sell before approval," adding, "After the approval, such properties are expected to come onto the market in small numbers, each likely to carry an additional premium of at least 100 to 200 million won."

Meanwhile, in Noryangjin New Town, District 6 ("La Clace Jade Pine") was the first to be offered, with District 8 ("Acro River Sky") set for allocation next month, and District 2 ("Define Artia") expected to follow in June. Demolition is underway in District 4, with construction scheduled to begin within the year. District 7 is currently in the relocation process, while District 5 has completed relocation and is preparing for demolition. District 3 received management disposition approval in February.

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