‘The house price is 500 million won, but the contribution is 500 million won’… Nowon reconstruction ‘panic’

“The additional contribution is equivalent to the price of a house. Most people live in apartments, so how can they afford this money? “I don’t know if the reconstruction will take place properly.”

A resident living in Sanggye Jugong Complex 5 expressed his anger, saying that it was difficult to cover the additional member contribution for the reconstruction being promoted through the Seoul Metropolitan Government’s Rapid Integration Planning (Shintong Planning). This is because the additional contribution has increased significantly as construction costs and loan interest rates have recently risen. Sanggye Jugong Complex 5 is a low-rise complex, but because it is a small-sized apartment complex, the land price per household is low. In addition, since the general sales volume is only 12 households, the construction cost is required to be paid by union members. The additional contribution should be offset by general sales, etc., but since this is not possible, the burden of the additional contribution has to be borne. There are concerns that business may come to a halt because of this.

According to the maintenance industry on the 19th, according to the Ministry of Land, Infrastructure and Transport Actual Transaction Disclosure System, 31.98㎡ exclusively for Sanggye Jugong Complex 5 was sold for 505 million won last month. It was found that when a union member receives an exclusive area of ​​84㎡, which is the national standard, an additional contribution of 500 million won is required, and for an exclusive area of ​​59㎡, an additional 300 to 400 million won is required.

Sanggye Jugong Complex 5, completed in 1987, is a low-rise complex with the highest five floors. It has a floor area ratio of 93%, a single 31㎡ unit, and a total of 840 households. Through Shintong Planning, this complex will be transformed into a floor area ratio of 299.73%, a maximum of 35 floors, and 996 households. Construction was undertaken by GS Construction. Considering the additional굿모닝토토 contribution, it is calculated that a total of more than 1 billion won should be needed for an apartment price of 500 million won. It’s a calculation. From the beginning, expectations were high that the speed would be the fastest in Nowon-gu due to the selection of Shintong Planning.

Nowon-gu is the autonomous district in Seoul with the largest number of old complexes that have been completed 30 years ago and are nearing the end of reconstruction. There are 43 complexes subject to safety inspections, 12 of which have completed safety inspections and are currently pursuing projects. Some of these complexes are in a similar situation to Sanggye Jugong Complex 5, so there are signs that the ‘estimated cost sharing shock’ is about to spread. In fact, Wolgyesiyoung, ‘Mimi Sam (Miseong, Miryung, Samho 3rd)’, a representative reconstruction complex in Gangbuk, consists of 33 to 59㎡. In Junggye Jugong Complex 2, all households are 44㎡ for exclusive use, and Sanggye Hanshin also consists of 27 to 44㎡ for exclusive use.

An official in the maintenance industry said, “It is just the beginning of the project, but the union members are panicking as rumors spread that the additional contribution will be more than 500 million won.” “It is spreading rapidly not only in Complex 5 but also in Nowon area complexes,” he said.

An official from the Sanggye New Town Association also said, “Around June, we were informed by the district office that if we applied for an exclusive 84㎡ space, the estimated contribution would be around 720 million won. “The current trend of redevelopment and reconstruction contributions is like this, so can the atmosphere be good?” he said. “Because rising construction costs and interest rates are bad news for maintenance projects, there is a strong negative view on whether reconstruction and redevelopment has any merit, except for high-end areas such as Gangnam or Yeouido.” “He explained.

Experts said that with construction costs rising and loan interest rates showing no signs of falling, redevelopment and reconstruction projects with poor location or business viability will eventually have no choice but to stop. Kim Je-kyung, head of Tumi Real Estate Consulting, said, “The contribution for maintenance projects in downtown Seoul used to be 300 million to 400 million won, but as construction costs rise due to the rise in construction material prices and the interest rate burden increases, the number of businesses with additional contributions amounting to 500 million to 600 million won is increasing.” He said, “The time has come when you have to be prepared to pay more than 500 million won.”






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