Opportunity to own a 6 billion won apartment by selling Seongnam villa and investing in Banpo 1-dong redevelopment villa

A viewer stated that they own a redevelopment villa in Taepyeong 3-dong, Seongnam, and that it will be two years of ownership in January next year. The viewer consulted on whether to sell and move to Seoul or continue to hold it, saying, "I have a redevelopment villa in Taepyeong 3-dong. It will be two years of ownership next January. So, should I move now, or should I continue to hold it because Seoul has risen too much?"

Currently, with Seoul's real estate prices having risen significantly, the situation is to seek expert opinion by comparing the future value of the Taepyeong 3-dong redevelopment villa in Seongnam with real estate investment opportunities in Seoul.

Expert Cha Yoon-won immediately recommended that the viewer sell the Seongnam villa and move to Seoul. He gave a clear answer, saying, "Yes. Sell it and move to Seoul. Yes. Simple, right?"

This is interpreted as highly valuing the potential value and investment advantages of the Seoul real estate market.

Expert Cha Yoon-won asked the viewer how many homes they currently own, and the viewer replied that they own one home. Through the viewer's answer, "Yes. Yes. Yes. One home," it was confirmed that this sale and relocation is a decision for a single homeowner.

Expert Cha Yoon-won explained the background of his recommendation to move by comparing apartment prices in Seongnam and Seoul. He mentioned that the price of a 30-pyeong apartment in Seongnam is between 1.2 billion and 1.7 billion won, still under 2 billion won. In contrast, apartment prices in Seoul vary by region, but most are in the 2.5 billion to 3 billion won range for large units, indicating a significant price gap between Seongnam and Seoul.

This price difference suggests the high value and growth potential of Seoul real estate, emphasizing that moving assets from Seongnam to Seoul can bring greater capital gains.

Expert Cha Yoon-won clearly stated that he recommends moving from Seongnam to Seoul not because Seongnam real estate is bad, but because Seoul is a relatively better investment location. He explained, "Ah. It's not because Seongnam is bad, but because Seoul is better, I want to tell you to move to Seoul."

This advice does not imply a decline in the value of Seongnam real estate itself, but rather a judgment that Seoul is more attractive in terms of investment returns.

Expert Cha Yoon-won recommended Banpo 1-dong, stating that one should invest in the most central area of Seoul to choose where prices will rise the most. As he has mentioned many times on the broadcast, he specifically pointed to Banpo-dong, especially Banpo 1-dong, emphasizing, "If you think about investing in the most central area of Seoul, where prices will rise the most, you can just shake off all your burdens and go for it. So where is such an area? As I have repeatedly said on the broadcast, Banpo-dong, right? Banpo 1-dong."

This area was presented as having very high potential for future value increase.

Expert Cha Yoon-won explained the high value of the Banpo area by mentioning the market prices of representative apartments in the Banpo-dong area. He stated that Banpo Xi apartment in Banpo-dong, Seocho-gu, is 5 billion won, and Maeple Xi apartment above it, which is almost new, has a market price of around 5.5 billion won.

These ultra-high apartment prices show that the real estate value in the Banpo area is very high and serve as a basis for predicting the expected value of new apartments through future redevelopment.

Expert Cha Yoon-won pointed to a specific block next to Banpo Xi as a promising investment area. This block is located between Sinnonhyeon Station and Nonhyeon Station and has the advantage of being a double or triple subway station area served by lines 7, Shinbundang, and 9. He introduced this block, which is adjacent to the Gyeongbu Expressway, as the neighborhood next to Banpo Xi, emphasizing its location at a transportation hub and subway station area.

These locational advantages are expected to lead to high business feasibility in future redevelopment.

Expert Cha Yoon-won mentioned that the Gyeongbu Expressway underground project is underway and is expected to be completed next year. He stated, "However, this Gyeongbu Expressway underground project is in progress. I think the detailed design will be completed next year, and construction will begin the year after next."

This project is expected to be a major positive factor for the Banpo 1-dong area.

Expert Cha Yoon-won explained that due to the Gyeongbu Expressway underground project, the expressway will disappear and become a park around the mid-2030s. He emphasized that if the space blocked by the expressway transforms into a park, it will be a very significant positive factor for both the Banpo 1-dong residential area and Banpo Xi apartment. He said, "Therefore, by the mid-2030s, the expressway here will disappear. It will all be covered. It will be made into a park. They will create a park. But if the expressway, which was blocking the space between this apartment and the residential area in Banpo 1-dong, becomes a park, that would be a very big positive factor, right? Yes. It's a positive factor for Banpo Xi, and it's a positive factor for the residential area in Banpo 1-dong," predicting an increase in surrounding real estate values.

Expert Cha Yoon-won explained that the obsolescence rate of Banpo 1-dong currently reaches 67%. He stated that 67% of the houses are 30 years old or more, which exceeds the 60% obsolescence standard for redevelopment. He said, "The obsolescence rate in Banpo 1-dong is about 67%. 67% of the houses are 30 years old or more. Yes. Yes. So, for redevelopment, if it exceeds 60%, redevelopment can be done. Yes. Yes. Yes. It has met the obsolescence criteria for redevelopment. Redevelopment can be pushed through at any time, right?" emphasizing that it has met the conditions to pursue redevelopment at any time.

Expert Cha Yoon-won pointed out that there are quite a few commercial buildings in Banpo 1-dong, and owners of these commercial buildings tend to oppose redevelopment. He explained that commercial building owners are hesitant about redevelopment because they worry that their current monthly rent income will decrease if redevelopment proceeds, and that the appraisal value they receive later will be lower than their current asset value. He said, "But if you look at the people here, there are quite a few commercial properties, right? There are commercial properties. So, will these commercial properties try to proceed with redevelopment or not? They won't try to proceed. Because commercial property owners think it's much better to receive monthly rent, and they think that the appraisal value they receive later will be lower than their current asset value, they don't proceed with redevelopment well."

Expert Cha Yoon-won analyzed the case of investing in a two-room villa in the inner blocks of Banpo 1-dong. The current market price for a two-room villa is approximately 900 million won, and if a jeonse (deposit-based lease) is set at 400 million won, the actual investment will be approximately 500 million won. He specified the exact investment amount, saying, "Therefore, you can go inside. If you invest in one here, about two or three blocks inside, right now, a two-room villa here costs about 900 million won. 900 million won. But if you set a jeonse, the jeonse is about 400 million won. Then, excluding the jeonse, our investment is about 500 million won."

He explained that this 500 million won investment can leverage the potential of Banpo 1-dong redevelopment.

Expert Cha Yoon-won predicted that if one invests in Banpo 1-dong, redevelopment is likely to proceed within 5 years. He mentioned, "If you invest here and about 5 years pass, I think it will all proceed within 5 years. I said the obsolescence rate is 67%." He emphasized that the high obsolescence rate of 67% already serves as a basis for rapid redevelopment.

This provides a positive forecast for the investment recovery period and profit realization time.

Expert Cha Yoon-won explained that Banpo 1-dong is an area where almost all types of redevelopment in Seoul can be applied. He stated that it meets the requirements for all six types of redevelopment: quick integration planning redevelopment, Oa-town, station area shift, station area revitalization, and two types of urban complex development—residential-focused and growth-hub types. He said, "Redevelopment currently most common in Seoul: quick integration planning redevelopment, Oa-town, then station area shift, station area revitalization, and urban complex. There are two types of urban complex: residential-focused and growth-hub. This area can proceed with all six types of redevelopment. It has met all the conditions." He emphasized the wide range of development methods available.

Expert Cha Yoon-won selected 'Growth Hub Urban Complex Development' as the most suitable and economically viable redevelopment type for Banpo 1-dong. He explained that this development method is applicable to areas located within 500m of transfer stations Sinnonhyeon Station and Nonhyeon Station, and Banpo 1-dong meets this condition. The biggest advantage of growth hub development is its overwhelmingly high floor area ratio. While the floor area ratio for general apartments is about 300% and for high-density station area development is 500%, the growth hub type can receive an astounding 1300% floor area ratio.

This means that many more units can be built on the same area, and he emphasized that this maximizes business feasibility and significantly reduces the burden of contributions, saying, "Even Taepyeong-dong will probably go with a 300% floor area ratio. So, for example, that means about 300 units can be built in that area. But here, 1,300 units can be built. On the same area. How good would the business feasibility be then?" He also added that even commercial property owners who opposed redevelopment due to a low floor area ratio are likely to turn to approval if they receive the benefit of a 1300% floor area ratio.

Expert Cha Yoon-won explained that due to the high floor area ratio (1300%) of growth hub urban complex development, even commercial property owners who opposed redevelopment are likely to turn to approval. This is because improved business feasibility due to a high floor area ratio leads to a high appraisal value, allowing commercial property owners to enjoy various benefits such as 1+1 (one plus one) sales, receipt of refunds, and continued ownership of commercial properties. He said, "Because even those who own large properties will get a high appraisal value. So they can get 1+1, receive refunds, keep their commercial properties, and enjoy various other benefits. Therefore, I believe that if the area is developed as an urban complex, especially as a growth hub type, it will definitely undergo redevelopment." He emphasized that this situation is not a loss but a gain for commercial property owners, allowing them to acquire a 6 billion won apartment and commercial property together while also receiving a refund.

Expert Cha Yoon-won advised the viewer that now is the investment opportunity and to sell the Taepyeong-dong villa in Seongnam in January next year to invest the 500 million won capital gains in Banpo 1-dong. He emphasized not to miss the timing, saying, "Now is the opportunity. If our viewer sells now, if you sell in January next year, you can invest the 500 million won capital gains here, in Banpo 1-dong."

He warned that if redevelopment becomes visible, such as the formation of a redevelopment promotion committee or residents' briefings, it will no longer be possible to invest in Banpo 1-dong with 500 million won, stressing the importance of proactive investment.

When the viewer asked about a villa in Nonhyeon 1-dong next to Banpo 1-dong, Expert Cha Yoon-won replied, "Don't go there yet. Don't go. There are many commercial properties and offices, so redevelopment is quite difficult. So I'll tell you to only look at 1-dong." He advised caution in investing.

He emphasized excluding Nonhyeon 1-dong from investment targets and focusing solely on Banpo 1-dong because Nonhyeon 1-dong has a high proportion of commercial properties and offices, making redevelopment difficult.