The Jungsan Model Apartment in the West Ichon-dong neighborhood of Yongsan-gu, Seoul, which was built 55 years ago, has crossed the crucial threshold to begin the reconstruction process. This apartment complex has deteriorated to the extent that it received a disaster risk grade of D, but because it is classified as a 'land lease housing' owned by the city of Seoul, reconstruction has been difficult until now. However, as the owners of the Jungsan Model Apartment are entering the stage of finalizing the contract for purchasing the city-owned land, this apartment is expected to commence the formal reconstruction process.
According to Yongsan District Office and the maintenance industry on the 13th, it has been confirmed that over 90% of the owners of the Jungsan Model Apartment have paid the deposit for the purchase of the land owned by the city of Seoul. A representative from Yongsan District Office noted, 'I understand that more than 250 out of 266 households have paid the deposit.'
The Jungsan Model Apartment located in West Ichon-dong, Yongsan, Seoul, consists of 266 units with sizes ranging from 40 to 60 square meters. Completed in June 1970, this year marks the 56th anniversary of its construction. It has been designated as a specific facility subject to management due to its disaster risk 'D grade' since 1996, leading to a consistent discussion regarding the need for reconstruction for safety reasons.
However, due to the structural limitations of having separate ownership of the land and buildings, reconstruction has been difficult. In the Jungsan Model Apartment, while the rights to the building belong to the apartment owners, the land is owned by the city of Seoul. The apartment owners must purchase the city-owned land to initiate the reconstruction process. As the city of Seoul decided to sell the city-owned land to the apartment owners in 2022, the path for reconstruction of the Jungsan Model Apartment has been opened.
The amount that the owners of the Jungsan Model Apartment need to pay is approximately 1.092 billion won. The Seoul City Shared Property Review Committee has determined the sale price for the entire site (4,695.5 square meters) to be 1.092 billion won based on appraisal values. Apartment owners are required to pay between 300 million to 500 million won depending on the size of their units. The deposit is set at around 10% of the purchase price.
Owners can opt for 10-year partitioning payments for the purchase of the land. However, all the purchase payments must be made before the reconstruction project approval.
Recently, the rapid progress in deposit payments for the purchase of the city-owned land by the owners of the Jungsan Model Apartment appears to have been influenced by the fact that the validity period for the appraisal of the land expires this month. An appraisal for the sale of the city-owned land was conducted in 2024, and this validity period extends only until this month. If the sales contract is not finalized by the end of this month, a new appraisal may need to be conducted. Yongsan District has determined, based on legal advice, that if the deposit is paid, it indicates an intention to contract, so the contract remains valid even if the entire sales price is not paid.
Once the ownership transfer of the land is completed, the Jungsan Model Apartment will actively embark on the reconstruction project. Currently, the asking prices for units in this apartment range from 850 million won to 1.2 billion won, depending on the size of the units, which are 39.67 to 59.5 square meters. The Jungsan Model Apartment also benefits from the expected improvement in the residential environment due to the nearby development project of the Yongsan International Business District (Yongsan Maintenance Depot). A representative from a nearby real estate agency mentioned, 'Currently, there are not many listings available.'