The last reconstruction anchor in Gaepo-dong climbed… Gangnam’s best class Orna

[땅집고] Gaepo Jugong 5, 6 and 7 complexes in Gaepo-dong, Gangnam-gu, Seoul, have completed the process of establishing a union one after another from the end of last year to this month. The three complexes were the first to be rebuilt in the Gaepo district as middle-level (15th or less) complexes instead of low-rise (5th floor). It is also the last reconstruction complex except for the 9 complexes, which are rental housing for public officials, among the 9 complexes in Gaepo Jugong. When the reconstruction of the Gaepo district is completed, it is predicted that the complexes along the Han River in Gangnam and Seocho and the best in the Gangnam region will compete.

In particular, investors are interested in the fact that the Gaepo 5·6·7 complex has been established before the amendment of the’Urban and Residential Environment Improvement Act’, which entails a two-year real residency obligation for members of the reconstruction, so that even members who do not meet the current residency requirements can receive sales rights. This is big. Gaepo-dong Station on the Bundang Line and Daemosan Station are evaluated as having the best location in Gaepo District. However, there is an analysis that the increase in the floor area ratio is smaller than that of the low-rise complex, and the business feasibility will be slightly deteriorated due to the reconstruction excess profit redemption system and the sale price ceiling system.

■ 20,000 households are expected to transform into a new wealthy village

In the Gaepo district, Gaepo Jugong Apartments (Complex 1~9) built by Hyundai E&C in 1981, Gaepo Municipal and Irwon Daewoo Apartments were located. In the early 2000s, Gaepo District entered the reconstruction business when the 30-year deadline for reconstruction was reached, and the occupancy began one by one in 2019. So far, complexes 1-4 and 8 have been sold out, of which complexes 2 and 3 have moved in in 2019. When the project of the 5th to 7th complexes on the last train is completed, the Gaepojugong area is expected to be transformed into an emerging village with 20,000 households.

Gaepo 5, 6 and 7 complexes were a mid-level complex with 15 floors or less, and the project was somewhat slow. Complex 5 was approved to establish a union in December of last year. It is transformed from 6 buildings with the highest 14 stories, 940 units, to 35 stories above the ground and 1336 units (including 158 units for rent). The 6·7 complex, which is undergoing integrated reconstruction, was approved for establishment of the association on the 22nd. The existing 15-floor 17 buildings will be converted from 1960 units to 2994 units (including 386 units for rent).

Medium-rise complexes are relatively small in general sales due to the small increase in floor area ratio through reconstruction. In the case of Gaepo Jugong Complex 1, which was a low-rise, the floor area ratio increased from 68% to 249% through the reconstruction project. Gaepo 5·6·7 complex currently has an average floor area ratio of 140-150%.

However, the 5·6·7 complex is not necessarily disadvantageous than the low-rise complex. Most of the low-rise complexes were small (35-61 m² for exclusive use), whereas medium-sized complexes were 53·61·74·83 m², which had many medium-sized complexes, with fewer members. In the case of Gaepo Jugong Complex 1 (DH First I’Park), 5040 units were rebuilt to 6702 units (393 units for rent), and the general pre-sale was 1235 units. It is predicted that the 6-7 complex, which is the middle floor, will have 648 general pre-sale units as 1960 units will be converted to 2994 units (386 rental units). There is no significant difference in the ratio of general sales to the number of existing households.

However, complexes 5, 6 and 7 are subject to the pre-sale price limit and the reconstruction excess profit return system. It is difficult to avoid a slight drop in profitability. In the case of Gaepo Jugong Complex 6, if a member of the 53㎡ holding member receives the right to move in 84㎡ through reconstruction, the additional contribution is estimated to be about 225 million won. In addition, the application of the excess profit return system is expected to result in a burden of approximately KRW 400 million per member. 53㎡ The recent actual transaction price is 2.34 billion won.

As a result, assuming that you buy 53㎡ and receive a 33 pyeong apartment just before the establishment of the association, you should invest about 2.9 billion won. Considering that the current market price for new apartments in Gaepo-dong is KRW2.9 billion, it is difficult to expect a market profit at this stage. Of course, it should be taken into account that it takes about 10 years to move in to the reconstruction.

■ 200 million lower than Daechi-dong… “It will rise further after reconstruction”

Among the Gaepo Jugong Complex, the reconstruction project was completed ▲Complex 2’Raemian Blesstage (in January 2019)’ ▲ Complex 3’DH Honor Hills (in August 2019)’ ▲ Gaepo Municipal’Gaepo Raemian Forest (2020) Moving in in September). From this year to 2024 ▲ Complex 8’Gaepo DH Chiayi (going in July 2021)’ ▲ Complex 4’Gaepo Presence Chiayi (going in February 2023)’ ▲ Complex 1’DH First I-Park ( January 2024)’ and others move in one after another.

In Gaepo Jugong, the location of complexes 5-7 is the best. Gaepo district is less accessible to subway stations, but all of the middle-level complexes have Gaepo-dong Station and Daemosan Station on the Suin Bundang Line in front of the complex. If you take the Suin Bundang Line and go to 3 stations, you will be at Daechi-dong Hagwon Street (Hanti Station). There is a view of Yangjaecheon, and there are abundant green spaces such as Daemosan Mountain and Dalteo Neighborhood Park. The 84㎡ of’DH Honor Hills’, the most recent move in the Gaepo district, was traded at 2.89 billion won last October, which was the most expensive in the Gaepo district. ‘Raemian Daechi Palace’, a newly built Daechi-dong, about 1km away, sold for 3.1 billion won in June last year, which is about 200 million won different from the Gaepo district.

Experts believe that when the reconstruction of Gaepo Jugong Complex 5~7 is completed, the overall name value of Gaepo-dong can increase significantly. Compared to the banks of the Han River in Seocho-gu, Gaepo-dong has good accessibility to the Gangnam business district and has the advantage of being quiet and comfortable as a residential area. Kim Hak-ryul, head of the Smart Tube Real Estate Research Institute, said, “Gepo-dong is less accessible to academia and public transportation in Gangnam, but there are no new apartments in Daechi-dong, so when the reconstruction of Gaepo district is completed, there is a possibility that the market price of Gaepo-dong will be higher than that of Daechi-dong for a while.” /Reporter Kim Ri-young [email protected]

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