Sadang-dong 'Woo-Guk-Sin' Remodeling Raises Hopes for a 5,000-Household New Residential Belt… Member Contributions Remain a Challenge

In remodeling projects, the cost of the project is generally covered by income from selling the additional households to the general public. For example, if 500 households can be sold to the general public, the proceeds can cover construction costs. Even with this income from general sales, however, the contributions that members must pay directly can reach several hundred million won.

All were completed in 1993, share the same floor area ratio of 248%, and have similar unit mixes ranging from 46㎡ to 118㎡ in exclusive area, so they have many things in common.

A road runs between the Woosung 3 complex and the Sindong-A 4th complex, and the lots are completely separated along this road. Because of this physical separation, a joint remodeling project for the three complexes has effectively become impossible. As a result, Woosung 2·3 and Kukdong formed a single association and are pursuing remodeling as 'Woo-Guk,' while Sindong-A 4th formed its own association and is pursuing remodeling separately as 'Sindong.'

These complexes recently received a B grade, passing the safety diagnosis and qualifying to pursue remodeling. In particular, vertical expansion remodeling is only possible with a grade of B or higher, and extensions are limited to a maximum of three floors.

Combined, the Woosung 2 and Woosung 3 complexes and Kukdong currently total 3,485 households. Through remodeling, these complexes would grow to 3,987 households, an increase of more than 500. The roughly 500 added households are expected to be sold to the general public, providing an important source of funds for the project.

Remodeling goes beyond improving individual units and greatly enhances the living environment of the entire complex. Sloped terrain can be leveled to create a comfortable walking environment, and by moving ground-level parked cars to underground parking, the ground can be turned into a park while securing parking spaces. In addition, landscaping improvements and new community facilities can provide convenience on par with a new apartment complex.

The main reason the Sadang-dong 'Woo-Guk-Sin' complexes chose remodeling over rebuilding is their existing floor area ratio. The current ratio in this area is 248%, close to the 250% upper limit for Seoul's third-class general residential zone. Since the floor area ratio has already been nearly maxed out, adding households to secure project feasibility through rebuilding would be very difficult. Remodeling, by contrast, can proceed 15 years after completion and, unlike rebuilding, does not require 30 years of age or a safety diagnosis grade of D or lower, so it is relatively free of such restrictions.

Remodeling projects face a legal limit: the number of households cannot be increased by more than 15% of the existing count. This restricts the volume of general sales and directly affects project profitability. Because the structure relies on income from general sales to cover construction costs, the fewer units available for general sale, the more member contributions rise. In addition, because remodeling reinforces the existing frame, construction costs are more volatile than in rebuilding and can react sharply to unexpected cost increases, adding uncertainty to the estimate of member contributions.

Pursuing a remodeling project by combining complexes offers the advantage of economies of scale. If complexes are combined like 'Woo-Guk,' more than 500 units can be secured for general sale, creating favorable conditions for covering project costs. Even with these economies of scale, however, member contributions are still expected to reach several hundred million won. Looking at past remodeling cases, The Sharp Trie apartments incurred contributions of about 400 million won.

The Sadang-dong 'Woo-Guk-Sin' complexes are located in a prime area, and prices are high on expectations of remodeling. Based on the 84㎡ exclusive area that is the most common size, Woosung 2·3 trades at 1.7 to 1.8 billion won, while Kukdong trades in the 1.6 billion won range. The price gap appears to reflect factors such as distance from Isu Station (Lines 4 and 7) and the slope within the complexes. If the interiors are leveled and the living environment is upgraded to the level of a new apartment, the value of the location is expected to rise further.

This road physically separates the lots of the two complexes completely, making an integrated remodeling project legally impossible. Accordingly, each complex has formed its own association and is proceeding with its remodeling project separately.

Residents of the sale buildings tried to form a remodeling association covering only the sale buildings, excluding the rental building, but the Dongjak-gu Office returned the application, and the request was withdrawn. Complexes that include rental housing like this can face complex legal and administrative issues from the stage of forming an association.

Sindong-A 4th has now received approval to form its remodeling association and is accelerating the project. Forming the association is the first step of remodeling and means that a legal entity has been created with residents' consent. However, a construction company has not yet been selected, and the safety diagnosis results, a required step in remodeling, are still pending, so these will be important variables for the project going forward.

Sindong-A 4th, like Woosung and Kukdong, was completed in 1993 and currently has 912 households. Through remodeling, it plans to grow to 1,048 households, an increase of 136. The 136 added households are expected to be sold to the general public and play a key role in generating project income.

Remodeling is said to have simpler procedures than rebuilding, but the steps that must be completed are far from easy. Forming the association requires the consent of at least two-thirds of all residents, and the project plan approval stage requires consent of 75% or more. This high consent threshold is a major obstacle to moving projects forward, and opposition from residents can cause delays or even lead to consideration of switching to rebuilding.

If the Woosung, Kukdong, and Sindong complexes complete remodeling and effectively merge, they will become an extra-large complex of more than 5,000 households. Such a large complex is expected to bring considerable premium value to the Sadang-dong area. Megacomplexes generally tend to offer high levels of infrastructure, lower maintenance costs, and value as a local landmark.

The locations of the Sadang-dong 'Woo-Guk-Sin' complexes differ from one another. Households at the entrance of Woosung 2 are close enough to be classified as station-adjacent, with good subway access. By contrast, Woosung 3 and Sindong are somewhat far to reach Isu Station on foot. In terms of schools, proximity to elementary schools is good, but high schools are somewhat distant from the complexes.

Namseong Sagye Market is located near the Sadang-dong 'Woo-Guk-Sin' complexes, making daily life very convenient. The market houses essential facilities such as a community service center, a butcher, a fruit shop, a hair salon, and an optician, so residents can easily use the goods and services they need in daily life. The market is also kept relatively clean, offering a comfortable residential infrastructure.