Eunma Town Apartments (은마아파트) Is Expected to Have the Highest New Apartment Price in Korean History - 7.7 million won per pyeong (평당)
A recent news article translation
The anticipated apartment price of the “mammoth redevelopment (재건축 대어)” of Eunma Town Apartments (located at Daechi-dong, Gangnam-gu, Seoul) is estimated to be 7.7 million won per pyeong [1 pyeong = 3.3058 m2], making it the most expensive apartment development in Korean history. If this price is finalized, the new apartment price for an 84㎡ unit (exclusive use area, this is the national average in terms of apartment area), would be approximately 2.6 billion won, and a 59㎡unit would cost aapproximately 1.9 billion won.
On the 16th, Seoul Metropolitan City designated the entire area (243,552 ㎡) of Eunma Town Apartments as a redevelopment district, and expanded the district unit plan topographic map in its “Decision of a Redevelopment Project Plan for Eunma Town Apartments and Proposed Redevelopment District.” According to the announcement, Eunma Town Apartments, which was first constructed in 1979, will be redeveloped from its current status of 28 apartment buildings with 4,424 households to 33 apartment buildings with 5,778 households. Of the 1,354 new households, 678 will be slated for public housing, and 676 will be available as new apartments for sale.
One noteworthy section of this announcement is the estimated amount of the general new apartment price. In the decision phase of a redevelopment plan, which is the first procedure in redevelopment, it is usually unnecessary to present an estimated amount for the new apartment price. However, the Act on the Improvement of Urban Areas and Residential Environments (도시 및 주거환경정비법) was amended last year, and starting this year, it is necessary to stipulate the estimated amount of the new apartment price and the estimated value of the share of expenses (분담금) that the apartment owner will have to pay.
The estimated amount for Eunma Town Apartments was calculated at 7.7 million won per pyeong. This amount is the highest new apartment price in Korean history per pyeong of redeveloped apartment complexes, and is 20 million won higher than the price of the Raemian One Bailey Apartments (래미안원베일리) (approximately 5.669 million won per pyeong) located at Banpo-dong, Seocho-gu. The new apartment price per pyeong of the redeveloped Gangdong-gu Dunchon Jugong Apartments (둔촌주공) (approximately 3.8 million won per pyeong) was about twice as expensive as the recent new apartment sales of the Olympic Park Foreon Apartments (올림픽파크포레온). It is assumed that the recent increases in interest rates, construction costs, and future increases are all accounted for.
The announcement also disclosed the estimated share of expenses that apartment owners must pay for Eunma Town Apartments. Eunma Town Apartments estimated previous value for 76 ㎡units is 1.9 billion won, and for 84㎡units, it is 2.2 billion won. The previous value is the appraised amount (감정평가한 금액) of the current value given the anticipated development, minus the increased price. In this case, if a current owner of a 76 ㎡apartment were to receive a new apartment that is 84㎡, then they would need approximately 400 million won. If owners were to receive a new apartment that is 109 ㎡, they would have to make an additional payment of a maximum of 770 million won. However, it appears that the total amount of the share of expenses will be reflected as the project progresses.
This content was translated from various Korean news articles for promotional purposes.
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