If you have money, you are the first priority as '00 District Citizen'... 40% of reconstruction is concentrated here

[Financial News] It has been found that about 4 out of 10 places promoting reconstruction (excluding small-scale reconstruction) in Seoul are concentrated in the three districts of Gangnam. Reconstruction is more advantageous in areas where land and house prices are high. Due to the soaring construction costs and increased financial costs, it is a reality that it is not easy to match the business feasibility in non-Gangnam areas.
On the 23rd, Financial News analyzed reconstruction sites using Seoul city statistics and found a total of 321 places. This figure excludes liquidation associations and includes all types of projects such as public and trust methods.
By region, Seocho District has the most reconstruction sites, with 54 places. According to city statistics, old apartment complexes in four areas, including Banpo, Jamwon, Bangbae, and Seocho, are simultaneously promoting reconstruction. Gangnam District has 37 reconstruction sites. The protagonists are old complexes in Apgujeong, Daechi-dong, and Gaepo-dong. Songpa District has 25 places. The total number of reconstruction sites in the three Gangnam districts reaches 116. This means that 36% of the total sites in Seoul (321 places) are concentrated in the three Gangnam districts.
Excluding the three Gangnam districts, Yeongdeungpo District (38 places), Gangseo District (21 places), Gangdong District (20 places), Yangcheon District (13 places), and Yongsan District (11 places) have many reconstruction sites. On the other hand, most of the outer areas have 10 or fewer reconstruction sites. Geumcheon District has 9 places, Gangbuk District 7 places, Nowon District 6 places, and Dobong District 2 places.
Not only reconstruction but also redevelopment (housing maintenance type) projects are similar. There are 567 sites promoting redevelopment and reconstruction in Seoul. Among them, the three Gangnam districts have 124 places, meaning 2 out of 10 are concentrated in specific areas.
Park Won-gap, chief real estate expert at KB Kookmin Bank, said, "Redevelopment and reconstruction are basically financial technology projects, and the higher the land price, the higher the profitability," adding, "In the end, it is inevitable that they are concentrated in the three Gangnam districts."
Concerns about infrastructure gaps are also growing. Ko Jun-seok, a professor at Yonsei University's Sangnam Institute of Management, emphasized, "While old complexes in Gangnam are being transformed into new residential complexes, there is a great concern that Gangbuk will remain stagnant," adding, "The public redevelopment and reconstruction that the government is considering also have clear limitations."
Meanwhile, according to the industry, an analysis of 28 complexes completed through reconstruction projects in the three Gangnam districts showed that it took an average of 15.07 years from safety inspection to occupancy.




ljb@fnnews.com Lee Jong-bae Reporter