Myeongil-dong Kicks Off Transformation Into 10,000-Unit Residential Town With 7 Complexes Pursuing Reconstruction

Myeongil-dong in Gangdong-gu, Seoul, has begun its transformation into a residential town of approximately 10,000 units as aging apartment complexes successively push forward with reconstruction projects. Following Godeok Hyundai and Myeongil Shindonga apartments, which completed their redevelopment zone designations this year, four additional complexes including Samik Green Mansion 2-cha have initiated redevelopment planning. These complexes are expected to complete construction sequentially starting as early as 2034. As a result, Myeongil-dong is projected to establish itself as a prime residential area in Gangdong-gu, alongside Dunchon-dong, home to Olympic Park Foreon, and Godeok-dong, where Godeok Gracium is located.

According to the Seoul Metropolitan Government and the redevelopment industry on January 16, agenda items for redevelopment zone designation and planning decisions for four complexes—Samik Green Mansion 2-cha, Godeok Jugong 9, Myeongil Hanyang, and Woosung—are scheduled to be submitted for deliberation by the Seoul Urban Planning Committee in the first half of next year.

Gangdong-gu Office conducted public reviews of redevelopment plans for Samik Green Mansion 2-cha (May-June), Godeok Jugong 9 (October), and Myeongil Hanyang (October) this year. The office is also conducting a public review of Woosung's redevelopment plan from December 3 through January 2 next year. After the public review and Gu Council consultation, the redevelopment plans will be finalized through official announcement once they pass the Seoul Urban Planning Committee deliberation.

Samik Green Mansion 2-cha was completed in December 1983 as a 2,400-unit complex with a maximum of 15 floors and a floor area ratio of 171 percent. The reconstruction plan envisions a large-scale complex with 3,353 units, a maximum height of 40 floors, and a floor area ratio of 300 percent. A reconstruction association was established in July 2021 based on provisions of the former Housing Construction Promotion Act that recognize apartment district development master plans as equivalent to redevelopment plans. The Samik Green Mansion 2-cha reconstruction association requested the Seoul Metropolitan Government to submit the project for Urban Planning Committee deliberation in late October and is currently working on supplementing the redevelopment plan.

According to the publicly reviewed redevelopment plans, Godeok Jugong 9 apartment is planned for reconstruction into 1,816 units with a maximum of 49 floors, Myeongil Hanyang into 1,160 units with a maximum of 49 floors, and Woosung into 999 units with a maximum of 49 floors.

Amid expectations of price increases driven by the reconstruction momentum, an 84-square-meter unit at Samik Green Mansion 2-cha was traded at a record high of 1.96 billion won ($1.4 million) on September 27, rising 500 million won from the 1.4 billion won level in February this year. Considering that the same unit type at Raemian Solbenu—completed in June 2019 through the reconstruction of neighboring Samik Green Mansion 1-cha—reached a record high of 2.2 billion won on September 27, market participants expect further price appreciation. A real estate agent in Myeongil-dong said, "After the October 15 measures were announced, there are not many listings for reconstruction complexes like Samik Green Mansion 2-cha, and transactions are not occurring smoothly. Buyers expect prices to fall due to regulations, while homeowners are not lowering their asking prices, expecting prices to rise."

Previously, redevelopment plans for Godeok Hyundai (952 units, maximum 49 floors) and Myeongil Shindonga (947 units, maximum 49 floors) passed the Seoul Urban Planning Committee deliberation in July this year and have been finalized.

Samik Mansion established a reconstruction association in July 2021 and selected Daewoo Engineering & Construction as its contractor in December last year. The Samik Mansion reconstruction association initiated a plan amendment to separate one building composed of large unit types after residents objected over issues including contribution payments. The association plans to finalize the amended redevelopment plan—which envisions 999 units in a 39-story building—through the Seoul integrated redevelopment project deliberation in the first half of next year, followed by pursuit of project implementation approval.

These complexes are expected to be completed sequentially starting as early as 2034, beginning with Samik Mansion, which is at the most advanced project stage, under Seoul's "Rapid Integrated Planning 2.0" policy that shortens the average redevelopment project period from 18.5 years to 12 years. Once reconstruction is completed, the area will be transformed into new complexes totaling approximately 10,000 units.

Experts analyzed that reconstruction of aging apartment complexes in Myeongil-dong is spreading due to demand for improved living environments as well as rising prices at complexes created through reconstruction in nearby Dunchon-dong and Godeok-dong. Nam Hyuk-woo, a researcher at Woori Bank's Real Estate Research Institute, said, "Myeongil-dong has well-established residential conditions with convenient public transportation access including Myeongil and Godeok stations on Seoul Metro Line 5, prestigious schools such as Baejae Middle and High School, and a well-formed academy district. After the reconstruction projects are completed, prices could surpass those of Godeok-dong complexes."