[Boomerang of High-Density Apartments ⑤] Over 60% of Remodeling Projects Concentrated in Gangnam and Yongsan... 0 Cases in Nodogang

50 out of 75 Projects Concentrated in Gangnam 4 Districts and Yongsan

No Projects in 12 Districts

51 Sites Still at Safety Inspection and Association Approval Stages

It has been found that two out of every three apartment complexes undergoing remodeling in Seoul are concentrated in the so-called Gangnam 4 districts and Yongsan-gu.

Remodeling is effectively the only viable alternative for aging, high-density apartment complexes where reconstruction is realistically difficult. However, even remodeling projects are heavily concentrated in a handful of areas with high housing prices. The sustainability of aging, high-density complexes located in the suburban areas of Seoul is expected to be a key factor in resolving this issue.

According to an analysis by The Asia Business Daily on June 18 of data from the Seoul Urban Space Portal, there are a total of 75 “Remodeling Activation Zones” designated by the Seoul Metropolitan Government to promote the remodeling of multi-family housing. Songpa-gu includes 13 complexes, the highest among Seoul’s 25 districts. Seocho-gu and Gangnam-gu follow with 12 and 10 complexes, respectively. Next are Gangdong-gu with 8 and Yongsan-gu with 7. In total, 50 complexes—67% of all sites where remodeling is being pursued—are concentrated in these five districts, which include the Gangnam 4 districts and Yongsan-gu, areas known for high-priced housing in Seoul.

On the other hand, 12 districts—almost half of Seoul’s total—have no apartment complexes pursuing remodeling at all. These districts, such as Seodaemun, Eunpyeong, Jongno, Jung, Seongbuk, Gangbuk, Dobong, Nowon, Jungnang, Geumcheon, and Gwanak, are mostly suburban areas where housing prices are relatively lower.

Among these, Nowon-gu has the third-largest number of high-density apartments with a floor area ratio of over 300% among the 25 districts. Even in Yeongdeungpo-gu and Guro-gu, which have the highest concentration of high-density apartments, only four complexes in each district are currently pursuing remodeling.

Overall, the pace of these projects has also fallen short of expectations. The government has eased regulations, including allowing vertical extensions for remodeling since 2014, and in 2018, the Seoul Metropolitan Government designated seven pilot complexes to spur project activity. However, out of the 75 Remodeling Activation Zones, only one complex—Seongji Apartment in Songpa-dong, Songpa-gu—has completed construction and been granted occupancy approval.

Only 23 zones have progressed to the stages of architectural review, permit approval, or commencement of construction, while the remaining 51 sites remain stuck at the safety inspection or association establishment phase.

An industry insider commented, “Because remodeling is less profitable than reconstruction, even among the sites where projects have begun, many are seeing slow progress. In particular, the recent surge in construction costs due to material shortages and rising labor costs has led to additional financial burdens, intensifying conflicts among association members in some complexes.”

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