[Issue] Where Do Gwangju's Redevelopment 'Big 3' Stand Now: Progress of Hakdong, Gwangcheon, and Singa

Mixed Fortunes Across Sites Amid Rising Construction Costs
Over 12,000 Units Slated for Supply
Market Remains Cautious Despite Metropolitan Consolidation Prospects

Some redevelopment sites have completed relocation and demolition but have remained vacant lots for years, while projects that had been halted by collapse disasters have begun to move forward again. Major redevelopment sites in Gwangju are taking different paths.

The Hakdong 4 District, which had been suspended after the demolition collapse disaster in 2021, has now broken ground, while the Gwangcheon-dong redevelopment—Gwangju's largest maintenance project—is awaiting key decisions after completing price negotiations for apartment sales. In contrast, the Singa redevelopment has stalled for a long period, unable to commence construction even after relocation and demolition were completed.

Although each project is at a different stage, the situations faced by all three are not very different. Across Gwangju's redevelopment market, there is the overarching challenge of having to secure profitability amid rising construction costs and a sluggish pre-sale market.

Aerial views of major redevelopment projects in Gwangju. From top: Gwangcheon-dong Redevelopment, Singa Redevelopment, Hakdong 4 District Redevelopment projects. [Provided by each union and construction company]

Hakdong 4 District Moves Again After Tragedy

The Hakdong 4 District redevelopment project, which is underway on a 126,433-square-meter site at 633-3 Hakdong, Dong-gu, Gwangju, had been halted for a long period after the 2021 demolition collapse disaster, but construction finally commenced on December 24, 2025.

The project consists of 2,299 units in buildings ranging from three basement levels to 29 above-ground floors. The construction period is set for 41 months, and barring any special variables, the goal is to complete by May 2029. The union is working with the contractor, HDC Hyundai Development Company, targeting a general pre-sale for October 2026.

On the morning of January 28, construction workers were busily moving at the redevelopment site of Hakdong 4 District in Dong-gu, Gwangju. Photo by Min Hyunki

Given the prolonged halt, issues with construction costs were significant. The union and contractor fixed the construction cost at 6,198,000 won per 3.3 square meters, and in July 2025, the union members' general meeting passed the plan to increase construction costs. The parties agreed to reflect only the inflation up to the construction start date, finalizing the related procedures.

Jo Byungchan, Executive Director of the Hakdong 4 District Redevelopment Union, said, "There have been many difficulties, but the union and contractor are pushing forward with the goal of creating a high-quality complex and enabling quick move-in. We will do our best to reward union members with a great development."

Gwangju's Largest Maintenance Project: Gwangcheon-dong's Choice

The Gwangcheon-dong redevelopment project, underway at 670 Gwangcheon-dong, Seo-gu, Gwangju, involves an investment of about 3 trillion won, making it the largest maintenance project in Gwangju. Plans call for more than 5,000 apartment units, parks, and various welfare facilities, with a total of 5,015 units under development.

The project has recently undergone significant changes. After being designated as a special architectural zone and undergoing integrated review, the maximum number of floors was raised from 33 to 45, and the development plan was revised to reduce the number of small and medium-sized units while expanding large units and penthouses.

On the retaining wall in the redevelopment area of Gwangcheon-dong, Seo-gu, Gwangju, there is a notice that reads "No Access to Dangerous Buildings". Photo by Bohyun Song

It has been reported that the union recently agreed with Hyundai Engineering & Construction on an average general pre-sale price of 24.02 million won per 3.3 square meters. Initially, the union sought a price fitting the high-end brand "THE H," but it was adjusted in consideration of concerns about unsold units and market conditions.

Demolition work is currently underway, and the union plans to proceed with a new round of pre-sale applications for union members and amendments to the management and disposition plan, followed by a general pre-sale. However, key issues such as the construction cost agreement, brand application, and schedules for general pre-sale and groundbreaking are yet to be finalized.

A union official stated, "We expect to be able to provide detailed explanations on the construction cost agreement, brand application, and schedules for general pre-sale and groundbreaking at the union's general meeting in July," declining to comment further.

Singa Redevelopment: Vacant for Years

The Singa redevelopment project, underway in Singa-dong, Gwangsan-gu, Gwangju, is the largest maintenance project in Gwangsan-gu, with about 4,700 units and a total project cost of 1.8 trillion won.

Although relocation and demolition have been completed, construction has not begun for years, leaving the site vacant for a prolonged period. As conflicts over construction costs and contractor issues have continued, and with repeated changes in the union's executive leadership, the project has suffered ongoing setbacks.

Overview of the redevelopment site in Singadong, Gwangsan District. Photo by Kim Wanjung

Yang Byungman, who was dismissed as union president last year, was re-elected and returned to his duties on April 12. He is now focused on normalizing the project and resolving issues related to construction.

In an interview with The Asia Business Daily, Yang said, "We are maintaining ongoing communication with the contractor, and expect the direction of relevant issues to become clear within this month. We are doing our utmost for the union members and will strive to deliver good results."

Increasing Unsold Units and Weak Housing Prices: A Challenging Market Environment

The Gwangju real estate market has remained sluggish in recent years.

According to housing statistics from the Ministry of Land, Infrastructure and Transport, the number of unsold homes in Gwangju increased from 291 at the end of 2022 to 596 at the end of 2023, and further to 1,404 at the end of last year. As of February 2026, the number of unsold units has slightly decreased to 1,319, but unsold units after completion totaled 720.

Housing prices have also failed to rebound. According to Korea Real Estate Board, Gwangju's housing sale prices have continued to decline this year, and the transaction volume has not recovered to previous levels.

Currently, more than 12,000 units are slated for supply from major projects alone: 2,299 units in Hakdong 4 District, 5,015 units in Gwangcheon-dong redevelopment, and over 4,700 units in Singa redevelopment. Industry insiders believe that the recovery of the pre-sale market will be a key factor influencing the progress of these projects.

Increasing Unsold Units and Weak Housing Prices: A Challenging Market Environment

Industry experts note that while the redevelopment projects in Gwangju are at different stages, they all face the common challenge of ensuring profitability.

A real estate agency in downtown Gwangju. Photo by Bohyun Song

Park Dongju, CEO of Myeongga Real Estate, said, "Maintenance projects need to be considered separately from the existing apartment market. As rising construction costs weaken profitability, various issues are emerging." He added, "Since it is unlikely that construction costs will decrease significantly any time soon, it is difficult to be optimistic about maintenance project conditions in the short term. For projects with a high proportion of general pre-sales, such as Singa, Gwangcheon, and Hakdong, the prices of existing apartments must rise for pre-sale prices and profitability to recover somewhat."

He continued, "Recently, inquiries about Gwangju properties from neighboring regions such as Jeonnam and Jeonbuk have increased, and expectations surrounding the launch of the Jeonnam-Gwangju Unified Metropolitan City and the attraction of semiconductor plants are having some impact on investment sentiment. However, the overall atmosphere in the Gwangju real estate market remains sluggish, so a noticeable turnaround is unlikely for some time." He added, "It will be important to keep an eye on the market when supply declines after 2028."

This content was produced with the assistance of AI translation services.