Four apartment complexes in Sinjeong-dong, Yangcheon District, Seoul, are pushing for integrated remodeling. Each association and the establishment promotion committee have signed a contract to jointly select a construction company and create a remodeling project site that boasts the premium features of a large complex. If the integrated remodeling proceeds as planned, a complex with approximately 1,400 units could be developed in this area.

The view of Ssangyong Apartment in Sinjeong-dong, Yangcheon-gu, Seoul

According to the maintenance industry on the 18th, four complexes in the Sinjeong-dong area of Yangcheon District, Seoul, are pushing for integrated remodeling. Earlier this month, representatives from the Sinjeong Ssangyong Apartment, Cheongu Apartment, Hyundai Apartment, and Mokdong Samsung Apartment associations and establishment promotion committees held a meeting to discuss matters related to integrated remodeling. During this explanatory meeting, the representatives discussed how to reduce the members' contribution fees through the integrated remodeling project. The application of an independent settlement system, which separately calculates revenue and expenses by complex, was also reviewed.

All four complexes are small apartments located near Yangcheon District Office Station on Line 2 and Omokgyo Station on Line 5. The Sinjeong Ssangyong Apartment at 9 Sinmok-ro, Yangcheon District, Seoul, was completed in 1992. It consists of two buildings with 270 units, and the remodeling association was established in 2008. Although it received approval for construction after three rounds of architectural reviews starting in 2009, the start of remodeling was delayed, causing the architectural review approval period to expire last year.

The Cheongu Apartment at 11 Sinmok-ro 2-gil, Yangcheon District, is an apartment completed in 1992. It consists of five buildings with 279 units. The Sinjeong Hyundai Apartment is a standalone apartment consisting of one building at 23 Sinmok-ro, Yangcheon District, with 217 units, completed in 1995. Furthermore, the Mokdong Samsung Apartment is a four-building apartment with 420 units located at 7 Sinmok-ro, Yangcheon District, completed in 1996. The current number of units in the four complexes is 1,186, and with integrated remodeling, this is expected to increase to between 1,200 and 1,400 units.

Ehwa Jin, the president of the Ssangyong Apartment Remodeling Housing Association, said, "We are in discussions to utilize the independent settlement system to select a single construction company, enjoy the premium of a large complex, and expand the benefits that each complex member can receive."

Graphic=Son Min-kyun

The reason for pushing for integrated remodeling is that it results in benefits such as cost savings from creating a large complex.

Earlier, in July 2021, the Shin-dorim Woosung 1st and 2nd phase in Guro District, Seoul, decided on integrated remodeling, appointing GS Engineering and Construction as the contractor. Also, in October of that year, the 3rd and 5th phases of Shin-dorim Woosung entered into construction contracts with POSCO.

A maintenance industry official said, "In smaller complexes, such as standalone apartments, profitability is low, and large construction companies often do not want to take on the construction. By bundling several complexes to create a large complex, the profitability for construction companies improves, and the associations can negotiate for more favorable terms in construction contracts."

Kim Hak-ryeol, head of Smart Tube Real Estate Research Institute, said, "Integrated remodeling can reduce expenses that normally accrue when doing individual remodelings, thus lowering the contribution fees for association members. Additionally, as the complex is developed into a large site, the future value of the apartments increases, creating various synergies that many remodeling associations are considering."