Integrated redevelopment, which combines multiple apartment complexes into a single redevelopment project, is spreading across Seoul. The "size-building" approach is drawing attention as it can improve project viability through economies of scale and secure the competitiveness of large complexes. However, as project size grows, so does the number of stakeholders, making smooth coordination between complexes the key variable that will determine success or failure.
A leading success story of integrated redevelopment is "Raemian One Bailey" in Banpo-dong, Seocho-gu. Raemian One Bailey was reborn as a complex totaling 2,990 units by combining Shinbanpo 3 (1,140 units) and the Gyeongnam apartment (1,056 units), among others. "Maple Zai" in Jamwon-dong is likewise a large complex of 3,307 units, rebuilt by integrating Shinbanpo 8, 9, 10, 11, and 17, Nokwon Hanshin, and Beni House.
Buoyed by these success models, integrated redevelopment across Seocho-gu appears to be picking up speed. Hanshin Seorae, Shinbanpo Palace, and Hyundai Donggung in Banpo-dong have drawn industry attention as Han Hyung-ki, the "star union chairman" who led the Raemian One Bailey integrated redevelopment, took on the role of preparatory promotion committee chairman last year as former union chairman. The three complexes formally launched the project in January by signing an integrated redevelopment agreement. According to the preparatory promotion committee, on June 16 it plans to file an application for the fast-track integrated planning advisory process for a revised maintenance plan reflecting the integration of the three complexes. The consent rate at each complex is reported to have exceeded 75%.
The preparatory promotion committee is targeting a maintenance zone change announcement around June next year and approval for the establishment of an integrated union around September. Subsequently, it is pursuing the project with the goal of relocation in January 2029 and move-in in July 2034. To minimize conflicts during the integration process, the project is being carried out on the premise of an independent settlement system and in-place redevelopment.
"We expect that through integrated redevelopment we will be able to secure a scale of more than 1,100 units," preparatory promotion committee chairman Han said. "It has the advantage of securing community facilities within the complex, as well as the effect of reducing construction costs and attracting greater participation from contractors." He added, "In effect, the integration process is more than 90% complete," and predicted that "move-in within eight years is also possible."
Woosung 1 and Ssangyong 2 in Daechi-dong, Gangnam-gu, are also accelerating integrated redevelopment. On May 21, the Seoul Metropolitan Government announced the maintenance plan decision and maintenance zone designation (change) for the Daechi Woosung 1 and Ssangyong 2 redevelopment project, as well as the district unit planning zone and district unit plan decision (change). The two complexes, currently 840 units, are set to be rebuilt to a scale of up to 49 floors and 1,324 units. An official from the Daechi Woosung 1 redevelopment maintenance project union said, "We plan to hold an integrated general meeting in August," adding, "After the second half of the year, we also plan to proceed with the contractor selection process." Samsung C&T (028260.KS), Hyundai Engineering & Construction (000720.KS), and DL E&C (375500.KS), among others, are reported to have shown interest.
Integrated redevelopment is also active outside Gangnam. Yeomchang Woosung 1 and 2 and the Samchully apartment in Gangseo-gu applied for the fast-track integrated planning advisory program in July last year and are reported to have completed their third advisory meeting last month. According to the redevelopment maintenance plan decision, maintenance zone designation, and district unit plan decision, which were open for public review through February, the three complexes will be rebuilt to a total of 996 units. This is an increase of 394 units from the combined existing 602 units.
Singil Woosung 2 and the Woochang apartment in Singil-dong, Yeongdeungpo-gu, received management and disposal approval on May 27, reaching their final stage. Korea Asset Trust took on the role of project implementer, and record-high transactions have continued as integrated redevelopment is pursued. The head of a nearby real estate agency, identified as agency A, explained, "There is always waiting demand because listings are scarce," and added, "Woochang is a small complex of 214 units, but expectations that it will transform into a large complex after redevelopment are being reflected."
The larger the complex, the higher the price appreciation rate, which is encouraging integrated redevelopment. According to Real Estate R114, as of May, the rate of change in sale prices of Seoul apartment complexes by size showed that complexes with fewer than 300 units rose 10.34%, while complexes of 1,000 to 1,499 units rose 17.77% and complexes of 1,500 units or more rose 16.95%.
Experts stress that while integrated redevelopment is advantageous in terms of securing project viability, conflict management is more important than anything else. Yang Ji-young, a senior expert at Shinhan Premier Pathfinder, said, "As construction costs rise, large-complex redevelopment that can secure economies of scale has a relatively advantageous aspect compared with small-scale complexes," while emphasizing, "Since cost burdens grow the longer a project is delayed, the biggest variable is whether complexes can smoothly reach agreement and proceed quickly."
