The Mokdong 5 district in Yangcheon-gu, Seoul, is completing the advisory process for the rapid integrated planning for reconstruction and is on the verge of designating a maintenance area.
According to the real estate industry on the 16th, the Mokdong 5 reconstruction preparation committee has recently submitted the maintenance plan to the Seoul City Urban Planning Committee's authorized subcommittee for review. However, the schedule for the Urban Planning Committee review has not yet been determined.
An official from the real estate industry in Mokdong said, "The Mokdong 5 district received advisory input through three rounds of rapid integrated planning and has presented the maintenance plan to the subcommittee for review, but the committee has not yet been formed, so I understand that the review will take place as early as this week," and noted, "If it passes the subcommittee review, it will be designated as a maintenance area, accelerating the reconstruction process."
Mokdong 5 district is a 1,848-unit apartment complex consisting of 36 buildings of up to 15 stories, completed in 1986. The reconstruction is expected to transform it into a new apartment complex with up to 49 stories and 3,930 units, with an estimated 400 public housing units and about 1,600 units for general sale.
Since October 2023, Mokdong 5 district has been promoting reconstruction through the fast track of the rapid integrated planning advisory method. The preparation committee aimed to maximize legal floor area ratio by building a school on public land and donating it. However, the Seoul City required changing the planned public land to private land, arguing that a new school was unnecessary. This requirement from the city was reflected in the maintenance plan, which was announced for public review in January this year.
However, the Mokdong 5 reconstruction preparation committee restored the allocation of land to its previous public land status after the third round of advisory input from the rapid integrated planning in April. Mokdong, being a school district, made the case that a new school would be necessary as the population would grow through reconstruction, and Seoul City accepted this.
As the reconstruction efforts accelerate, Mokdong 5 district is seeing a freeze on listings, with transaction prices and asking prices both skyrocketing. Currently, there are only five listings for Mokdong 5 district available on Naver Real Estate.
A 65㎡ unit in Mokdong 5 district was transacted for 2.25 billion won on May 22, setting a new record high. Units of 115-122㎡ also changed hands for 3.1 billion won each in April, recording the highest prices.
Mr. A, who operates a certified real estate agency in Mokdong, said, "When news comes out that listings are appearing, particularly in districts where reconstruction is being expedited among the Mokdong new town apartments, there are always five people in line to come and see the properties," and added, "With listings being almost non-existent, when transactions do occur, they immediately lead to record prices."