3) The story of Daechi-dong reconstruction
Daechi-dong is the center of the school district belonging to the 8th school district of Gangnam, and especially because it is adjacent to the academy district, many parents move to Daechi-dong for their children's education, to the point that it can be called a modern version of the story of a mother and a son. As a result, Daechi-dong apartments are always in high demand and their value is recognized.
“Investing in real estate in school districts is a shortcut to success in your children’s education and financial management.”
“If you understand the function of school districts and apartment prices, you will never fail in investing.”
This reflects the expectation that if children are successful in their education, they will be able to obtain not only educational achievements but also the high asset value of Daechi-dong apartments. Even if they do not achieve their educational goals, Daechi-dong
It is said that the value of real estate continues to rise steadily, so ultimately there is no loss.
However, many apartments in Daechi-dong are currently being built long ago and are aging, so reconstruction is actively underway. Eunma Apartment, Gumaul, Daechi Woosung 1cha, Daechi Ssangyong 2cha, Daechi Mido, Daechi Seonkyung, and other apartment complexes are each pushing forward with reconstruction plans, which is having a major impact on the Gangnam real estate market. Each complex is pushing forward with reconstruction in various ways, and interest in the future market changes that will result from this is growing.
In addition, the new complexes in Gaepo-dong are often compared to the redevelopment complexes in Daechi-dong. Gaepo-dong is an area adjacent to Daechi-dong, and in recent years, large-scale redevelopment has been completed, and new apartments with modern living environments are being built. These new complexes in Gaepo-dong are already forming a high premium, and if the redevelopment complexes in Daechi-dong also enjoy the premium of new construction in the future, their value is expected to increase significantly.
▲ Bird's-eye view of Daechi Edelui provided by Gamnam-gu Office
▲ Bird's eye view of Daechi Leel
Eunma Apartment is a large-scale complex completed in 1979, and has long been a representative residential area in Gangnam. With a total of 28 buildings and 4,424 households, it is the largest of the redevelopment complexes in Daechi-dong. This apartment has been preparing for redevelopment since 1999, but it has been delayed due to issues such as passing the redevelopment safety diagnosis and the floor area ratio. However, the redevelopment drive has recently been in full swing, and in May 2023, the consent rate for the establishment of a redevelopment association was met, and a new association head was elected through the election of the association head. Gangnam-gu Office approved the establishment of a redevelopment association on September 26, 2023, and the redevelopment project is expected to proceed quickly in the future.
Daechi Gumaeul used to be an area where mostly old villas were concentrated, but it has recently been rebuilt into a new residential complex. Gumaeul Complex 1 was rebuilt into a small complex with 273 households using Lotte Castle’s premium brand ‘Le L’, and Gumaeul Complex 2 was rebuilt into Daechi Prugio Summit with 489 households. These two complexes are gaining popularity as high-end residential areas in Gangnam. Currently, Gumaeul Complex 3 is under construction by DH Daechi Edel Lui, and the selling price per 3.3㎡ is approximately 65.3 million won. The selling price of 59㎡ is expected to be around 1.5 billion won, and the selling price of 84㎡ is expected to be around 2.2 billion won. The redevelopment of this area is not only increasing the value of the area, but also having a major impact on the entire real estate market in Gangnam.
Daechi-dong Woosung Apartment and Ssangyong Apartment provided by Gangnam-gu Office
Daechi Woosung 1st and Daechi Ssangyong 2nd are two complexes that are currently undergoing integrated reconstruction. They originally planned to proceed with reconstruction separately, but decided to proceed with integrated reconstruction in September 2022. Daechi Woosung 1st reconstruction association will absorb Daechi Ssangyong 2nd reconstruction association, and a 49-story, 1,300-household apartment complex will be built. Integrated reconstruction is the first case in Korea, and Gangnam-gu Office has also formed a special task force to provide legal and administrative support for integrated reconstruction and provide professional assistance to residents. As a result, the reconstruction process is progressing relatively quickly, and interest in future sales price determination and sales schedules is increasing.
Daechi Seonkyung Apartment is currently being promoted by two reconstruction preparatory committees with different reconstruction plans. One is a plan to reconstruct the existing 1,034-household complex into a 1,678-household complex, and the other is a plan to promote 1:1 reconstruction. While general reconstruction is expected to be more profitable due to the large number of units for sale, 1:1 reconstruction is being promoted with a focus on medium- and large-sized units, with the goal of upgrading them. Since the two preparatory committees have different directions, attention is being paid to which plan will be chosen in the future.
Gaepo Woosung 1 and 2 are large apartment complexes with 14 buildings and 1,140 households that were completed in 1983. There is a conflict between those in favor of the rapid integration plan, who want a quick process for reconstruction, and those in favor of 1:1 reconstruction, who want to pursue luxury over time. Reconstruction through the rapid integration plan has the disadvantage of increasing rental households and not increasing the floor area much, but it has the advantage of reducing the share. On the other hand, 1:1 reconstruction has fewer rental households and is more likely to be reconstructed as a luxury complex, but the project progress may be slowed down. If 1:1 reconstruction is carried out, reconstruction can be promoted again in the next generation.
The direction of reconstruction of Daechi Seonkyung and Gaepo Woosung 1 and 2 is expected to have a significant impact on the future Gangnam reconstruction market.
In this way, the Daechi-dong area is experiencing a feverish reconstruction fever, and each complex has a different reconstruction plan and direction. Accordingly, the impact on the Gangnam real estate market is expected to be significant, and interest in the future progress is growing.
Daechi-dong's major apartments are actively being rebuilt due to the school districts of Daechi-dong and the key locations in Seoul, which were previously serialized. Gangnam area
Various development plans, such as easing of reconstruction regulations, confirmation of GTX route, and development of the Samseong-dong area, are further increasing the value of apartments in this area. When these reconstructions are completed, the living environment is expected to improve significantly and real estate values are also expected to rise significantly.
However, reconstruction is a very complex and time-consuming process. It can take a long time for reconstruction to actually be completed due to legal procedures, resident consent, and funding. Therefore, investing solely on the expectation of reconstruction can be risky and requires a cautious approach.
Lastly, the 'Daechi-dong Story' serialized so far contains some of the author's subjective opinions and some of the contents that have not been confirmed yet. Since the real estate market is always volatile, if you are considering investing in this area, it is important to analyze the current real estate market situation and future prospects, and to carefully check the regulations and progress related to reconstruction. It is also advisable to consult with an expert and make an investment decision based on accurate information.
