Walking down toward the Han River from Exit 4 of Itaewon Station on Seoul Subway Line 6, visitors encounter empty storefronts where shops should be bustling with customers. Notices reading "Store Closing" or "Relocation Information" cover the windows of shuttered shops, while moving trucks load belongings throughout the area. Once renowned as Itaewon's "Antique Furniture Street," the area's landscape has transformed entirely since full-scale relocation began in January as part of the Hannam New Town Zone 2 redevelopment project. "Moving trucks come and go almost every day," an official at a nearby real estate brokerage said. "The association plans to wrap up relocation quickly, even through eviction lawsuits if necessary, after the official relocation period ends." Hannam Zone 2 has already surpassed a 66% relocation rate after about three months of voluntary relocation.
Heading further down Bogwang-ro with Zone 2 on the left, a massive construction site emerges behind tall barriers, where demolition work is in full swing. This is Hannam Zone 3, the largest section accounting for about 40% of the entire new town and the fastest-progressing zone. The site, set to be transformed into "The H Hannam," a mammoth complex of 5,816 units to be built by Hyundai Engineering & Construction, shows that most buildings have already been removed, even from glimpses through the barriers. Sources at the site say demolition could be completed as early as the end of this month, with construction and general subscription starting next year at the latest.
Beyond the demolition in Zone 3 and the relocation in Zone 2, Hannam New Town has recently seen a series of major positive developments. Hannam Zone 5, evaluated as having both views and an environment thanks to its long stretch along the Han River, received project implementation plan approval from the Yongsan-gu Office last month — 14 years after its association was established. Having crossed the redevelopment finish line, the association immediately launched on-site appraisals of existing assets and is accelerating the project, aiming to file for management disposition approval by the end of this year.
Hannam Zone 4, which selected Samsung C&T as its builder in January last year and obtained project implementation approval in November of the same year, recently completed appraisals and began a 35-day member subscription application process on the 18th. According to information distributed to members, the member subscription price stands at the low 2.6 billion won range for 84-square-meter units, 3.3 billion won for 113-square-meter units, and 4.2 billion won for 135-square-meter units — increases of 400 million to 900 million won from the time of project implementation approval. This is also higher than the late 1.9 billion won range for 84-square-meter units in Hannam Zone 2.
However, the disclosed member subscription prices were calculated based on the basic design at the time of project implementation approval. The association plans to conduct another subscription reflecting the alternative design proposed by Samsung C&T. If the alternative design is adopted, the total number of units will increase from 2,331 to 2,360, improving project profitability and potentially altering subscription prices.
Although prices have risen, members are more encouraged by appraisal results that exceeded expectations. "There are reactions that appraisal results came out at least 300 million to 400 million won higher than expected," an official at brokerage A near Zone 4 said. "Inquiries have surged as all Hannam New Town zones gain momentum, and after seeing Zone 4's appraisal results, members in other zones are pulling listings and raising prices again." The head of brokerage B added, "The premium on villas and multi-household homes eligible for 84-square-meter units has jumped to between 2.5 billion and 3 billion won."
According to the Ministry of Land, Infrastructure and Transport's actual transaction price system, in Zone 4, a small detached house with a land share of 45.9 square meters (about 14 pyeong) was traded at 3.3 billion won last month, and in January, a small villa with a land area of 26.4 square meters (about 8 pyeong, 69-square-meter exclusive area) was sold for 3.6 billion won. This translates to 240 million won and 450 million won per 3.3 square meters of land, respectively. In Zone 5, a multi-household villa of 21.5 square meters (about 6.5 pyeong) was sold for 3.2 billion won in April, equivalent to about 490 million won per 3.3 square meters. This is higher than March transactions, when villas with land shares of 32.6 square meters (about 9.8 pyeong) and 33 square meters (about 10 pyeong) were traded at 3.4 billion won and 3.95 billion won, or 340 million to 400 million won per 3.3 square meters.
"Hannam New Town requires investments of 3 billion to 4 billion won just for small villas, plus additional contributions of more than 1 billion won, but it remains an attractive investment given Banpo's market prices," said Kim Je-kyung, head of Toomi Real Estate Consulting. "Particularly Zones 4 and 5, having received project implementation approval, carry significantly reduced risk and high potential for Han River views, so demand remains strong."
Hannam Zone 1, which suffered the pain of being removed from designated redevelopment zones in 2017, was selected as a candidate for Seoul's Fast-Track Integrated Planning in March last year and is now accelerating to catch up with other zones. The handling of approximately 3,300 square meters of state-owned land within the zone owned by the Ministry of Foreign Affairs had been a key variable, but with close consultations recently underway among the Yongsan-gu Office, the Ministry of Foreign Affairs, and other related agencies, the zone is on track to submit its plan in the second half of this year.
Once redevelopment is complete, Hannam New Town will be reborn as a "mini new city"-class residential area with about 13,000 households in total. With builders selected for Zones 2 through 5, the participation of "Big 5" construction companies — including Daewoo E&C, Hyundai E&C, Samsung C&T, and DL E&C — through their high-end brands is also noteworthy. "Unlike Banpo's premium residential areas, where residents must choose between Han River views and southern exposure, the Hannam redevelopment district is one of Korea's best locations offering both southern exposure and Han River views together," an official in the construction industry said. "Since this can become a symbolic complex that elevates brand value, builders will give their best efforts in construction."
East of Yongsan Park Stirs… UN Command Site Breaks Ground, Transport and Intelligence Sites Wait
The mixed-use development of the UN Command site in Yongsan-gu, dubbed Korea's "Manhattan" with its sweeping view of Yongsan Park, is also drawing strong investor interest. "The Parkside Suite," set to rise on the site, is considered to have succeeded commercially despite the broader struggles in Seoul's high-end officetel market. The U.S. military transport unit and intelligence command sites south of the UN Command site have yet to be returned, slowing project progress, but their exceptional location continues to attract construction firms and developers.
According to the redevelopment industry on the 18th, "The Parkside Seoul," developed by Eleven Construction, is progressing smoothly toward a target completion in February next year. The Parkside Seoul is an ultra-large mixed-use development on the UN Command site at 22-34 Itaewon-dong, Yongsan-gu. With a total project cost of 11 trillion won, it will house 420 apartment units, 775 officetel units, and a hotel with about 250 rooms.
The Parkside Suite, the officetel portion, drew 1,296 applications for 775 units in last year's subscription, recording an average competition ratio of 1.67-to-1 and a maximum of 42-to-1. Considering that the general residential officetel market has frozen amid interest rate burdens, lending regulations, and intensifying preference for apartments, this is regarded as a respectable result. Demand also flooded the most expensive penthouses, producing stronger-than-expected outcomes.
Attention is also focused on the apartment subscription scheduled for next year. As Yongsan-gu is subject to the price cap system, general subscription is expected to bring at least 2 billion won in capital gains. "If general subscription proceeds, the price is expected to be set around 80 million won per 3.3 square meters next year under the price cap system," said Park Ji-min, head of Wolyong Subscription Research. "With nearby Ichon-dong and Hannam-dong market prices at 150 million won per 3.3 square meters, capital gains of more than 2 billion won are anticipated."
Some observers raise the possibility of supply through the lease-then-sell method to avoid regulations. After a mandatory lease period, conversion to sale allows pricing to be set freely at market rates. Ultra-luxury complexes including nearby "Nine One Hannam" and "Hannam The Hill," as well as "Brighten Yeouido," developed on the MBC site in Yeouido, have previously chosen the lease-then-sell approach.
Attention is also turning to the U.S. military transport unit and intelligence command sites south of the UN Command site, particularly the U.S. military transport unit area around 7 Dongbinggo-dong.
