'Flagship' Mokdong 7 Complex Receives Association Approval... Accelerated Pace for Mokdong Reconstruction Procedures

Fifth Approval Following Complexes 6, 4, 8, and 12
Complexes 5 and 7 Emerge as Flagship Projects; Competition Among Builders Intensifies
Mokdong 12 Complex Announces Bid for Construction Firms

Mokdong 7 Complex, considered a key location for the reconstruction of Mokdong New Town in Yangcheon-gu, Seoul, has received approval for the establishment of its reconstruction association, following complexes 6, 4, 8, and 12. In particular, Mokdong 12 Complex has not only received association approval but has also announced a bid for construction firms. The pace of reconstruction in the Mokdong area is accelerating.

A view of Mokdong Complex 7 located in Yangcheon-gu, Seoul. Photo by Yonhap News

According to the maintenance industry on July 8, the Yangcheon-gu Office approved the establishment of the reconstruction association for Mokdong 7 Complex on this day. The preparatory committee secured a 90.4% consent rate from land and property owners as of June 24 and subsequently applied for the association’s establishment approval. The association plans to apply for the integrated review by the Seoul Metropolitan Government within this year at the earliest and will begin the selection process for a construction company.

With this, a total of five out of the 14 Mokdong New Town complexes have now received approval to establish reconstruction associations. Starting with Mokdong 6 Complex in May last year, complexes 12, 8, and 4 have also consecutively received approval.

The Mokdong New Town area, comprising 14 complexes and around 40,000 households, is the largest redevelopment site in southwestern Seoul, where old apartments are being transformed into a new residential town. Among the 14 complexes, Complexes 7 and 5 are regarded as the “flagship” projects. In particular, Complex 5 has the lowest floor area ratio at 116% and the highest average land share per household, making its business feasibility highly rated for reconstruction.

Mokdong 7 Complex, completed in 1986, consists of 2,550 households, making it the second largest among the 14 Mokdong New Town complexes after Mokdong 14 Complex (3,100 households). Through reconstruction, it is expected to be transformed into a large-scale complex with up to 49 floors and 4,335 households.

Its location conditions are also considered a major strength. The complex benefits from a double subway station area, being close to both Mokdong Station and Omokgyo Station, and is near Hyundai Department Store Mokdong branch as well as the Mokdong private education district. Proximity to Mokun Elementary School and Mokun Middle School ensures strong demand from families seeking good school districts.

Notably, the business feasibility of Complex 7 ranks among the highest in Mokdong. Its current floor area ratio is low at 125%, meaning there is considerable room for additional development, and the relatively large land share per household raises the potential for significant profit from general sales. As rising construction costs and increased burden of cost-sharing have become key variables in redevelopment projects, the strong business fundamentals of Complex 7 are highly attractive to major construction companies.

Fierce competition among large builders is anticipated for Complex 7. Major construction firms such as Samsung C&T, Hyundai Engineering & Construction, GS Engineering & Construction, and Lotte Engineering & Construction are reportedly actively considering participation in the bidding for the construction contract. An official from one of the major builders commented, “Mokdong is considered a prime area in Seoul with well-established education and infrastructure, so we are closely watching this project with great interest.”

The pace after association approval has also been rapid. The Mokdong 12 Complex Apartment Reconstruction Maintenance Association recently announced a call for bids to select a construction company. The reconstruction project for Mokdong 12 Complex Apartments covers 127,339.5 square meters in Sinjeong-dong 326, Yangcheon-gu, Seoul. The plan is to develop a residential complex with up to 43 floors and 2,810 households, along with various community facilities.

The total project cost is set at 1,788,811,316,600 won, with the construction cost per 3.3 square meters set at 9.8 million won. The construction company will be selected through an open competitive bidding process, and joint ventures will not be permitted. The bid deposit is set at a total of 80 billion won (40 billion won in cash and 40 billion won in performance guarantee insurance).

GS Engineering & Construction is reportedly demonstrating the strongest intention to win the Mokdong 12 Complex project. The company plans to collaborate with Gensler, a global architectural design firm known for projects such as Incheon International Airport and the Nvidia headquarters, to propose a specialized complex design.

Neighboring complexes have also begun the process of selecting construction companies. Following the confirmation of a builder for Complex 6 last month, Complexes 10 and 13 have held information sessions for the selection of construction companies. Hyundai Engineering & Construction and Daewoo Engineering & Construction have opened promotional centers in the Mokdong area.

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