The selection criteria for the second leading district of the first new towns (Bundang, Ilsan, Pyeongchon, Jungdong, Sanbon) is set to be announced in June, amid a mix of concerns and expectations. While complexes that were eliminated in the first round are reapplying for the leading district, worries have arisen as conflicts among residents in the first leading district have caused delays, increasing internal strife. However, with the rise in housing prices of nearby complexes since the first selection, there is hope that the second selection will see high competition.
According to the Ministry of Land, Infrastructure and Transport and others on the 26th, the five local governments of the first new towns are expected to announce the method for selecting the second project district in June. The methods and scales of the projects are expected to vary by local government. In Seongnam, where there are many reconstruction-promoting complexes, the entire volume of business for five years will be conducted in a single bidding form. For areas outside of Seongnam, it is likely that the method will involve residents directly preparing and proposing maintenance plans instead of bidding.
Most complexes that were eliminated in the first leading district will make another attempt in the second selection. Notably, Bundang Sibeom Hanyang, Park Town, Ilsan Gangchon 1 and 2 complexes, and Baengma 1 and 2 complexes were unfortunately eliminated in the first leading district selection.
However, there is a hesitancy among some as existing complexes selected in the first new town leading district are facing delays due to issues like additional contribution fees and conflicts among residents. Since Bundang Yangji Village, which was selected as a leading district, is attempting holistic reconstruction, problems have emerged regarding on-site reconstruction, with additional contribution fees exceeding 500 million won raised concerns among residents. Currently, a Reconstruction Normalization Committee has been established centered around Geumho 1 Complex.
In Ilsan, where the academy district and subway station are adjacent, the Integrated Reconstruction Promotion Committee for Baengma 1 and 2 complexes and Gangchon 1 and 2 complexes, known as the "diamond block," expressed, "We have continued to prepare even after being eliminated, and we have completed the estimated contribution fee calculations, so it seems there will not be significant problems," adding, "Reconstruction of the first new towns is now expected to proceed in earnest, and residents have high expectations."
A resident of a reconstruction-promoting complex in Bundang stated, "I heard our complex isn't less viable than those selected in the first round, yet we were not selected for various reasons," adding, "Now that the Reconstruction Promotion Committee and residents are better prepared, I expect good results."
However, contrary to earlier forecasts that the price increase effect would not be substantial during the first selection, the actual transaction prices of nearby complexes have risen, leading to expectations that the competition for reapplying may be intense despite the burden of contribution fees. According to the Ministry of Land, Infrastructure and Transport's transaction price disclosure system, a Hyundai first-phase apartment with a dedicated area of 84 square meters in Hanareum Village, Wonmi-gu, Bucheon, was traded for 540 million won on Dec. 2 last year. This is an increase of 90 million won compared to 450 million won in January last year. The Sammaul Ubang apartment with a dedicated area of 133 square meters in Ho-gye-dong, Anyang, was traded for 1.113 billion won on Nov. 11 last year, compared to 910 million won in January last year, marking an increase of over 200 million won.
A representative from a certified real estate office in Ho-gye-dong, Anyang, noted, "In Pyeongchon, even if the reconstruction and redevelopment policy is implemented, there wasn't significant hope among residents for it to progress quickly, but the reaction to the selection of the leading district has been very enthusiastic," adding, "While there are issues like contribution fees, complexes located near academies and transportation hubs hope for prompt selection for reconstruction to proceed."
Previously, the Ministry of Land, Infrastructure and Transport designated 13 areas and a total of 35,987 households as leading districts for the reconstruction of the first new towns in November last year. Following the approval of the business implementation plan in 2026, construction is expected to commence after relocation by 2027, aiming for occupancy by 2030.