As Seoul’s housing prices and jeonse and monthly-rent burdens rise, the 1st-generation new towns are once again being discussed as alternative residential areas.
Already-established transportation, education, and commercial infrastructure is an advantage, but the high proportion of older apartments makes the choice more difficult.
This is why newly built complexes and those undergoing redevelopment must be viewed separately, even within the same 1st-generation new town.
3-Line Summary
1. The 1st-generation new towns’ strength is their living infrastructure
2. Complexes more than 30 years past completion account for an average of 86.5%
3. A reconstruction plan is different from completed occupancy
The “Established Living Environments” Shared by the Five Areas
The 1st-generation new towns refer to Bundang-gu in Seongnam City; Ilsandong-gu and Ilsanseo-gu in Goyang City; Pyeongchon-dong in Anyang City; Jung-dong in Bucheon City; and Sanbon-dong in Gunpo City. They were developed and promoted in 1989 with the goal of addressing Seoul’s housing shortage and stabilizing home prices.
The reason these areas are drawing attention again is not only their distance from Seoul but also their already-formed living environments. Bundang is noted for its accessibility to the Gangnam area and Pangyo business district, while Pyeongchon is noted for its transportation network and school districts connecting Seoul’s southwestern area with southern Gyeonggi Province. Ilsan is a large-scale residential area equipped with parks, cultural facilities, and commercial facilities; Sanbon is characterized by access to Surisan and Subway Line 4; and Jung-dong is presented as having access to transportation and commercial facilities connecting Seoul’s southwestern area with Incheon.
The number of people who moved from Seoul to Gyeonggi and Incheon totaled 17 ten-thousand 7319 in the first half of this year. Of the 23 ten-thousand 6337 people who left Seoul, this means that approximately 7 chose the two regions. However, these migration figures do not directly signify purchase demand or price changes in the 1st-generation new towns. They should be examined as residential areas where demand from people leaving Seoul and demand from existing residents seeking to move to a better home are considered together.
An Average of 86.5% Have Been Completed for More Than 30 Years
The biggest challenge facing the 1st-generation new towns is aging. According to a compilation by Real Estate R114, the average proportion of complexes more than 30 years past completion is 86.5% among all apartment complexes. Pyeongchon is the highest at 93.1%, followed by Sanbon at 88.2%, Bundang at 86.8%, Ilsan at 83.8%, and Jung-dong at 81.7%.
In areas where most developable land has been exhausted, supplying housing through new housing sites is not easy. This is why rebuilding or remodeling existing complexes is being discussed as a key supply route. However, a long period is required from demolition to actual occupancy. The advantage of having well-established living infrastructure is a separate issue from the quality of the homes themselves, including their age, parking, floor plans, and community facilities.
“Reconstruction Expectations” and a Home Available for Immediate Occupancy Are Different
Recently, a trend has been reported in which the scarcity of relatively new apartments and complexes undergoing reconstruction within the 1st-generation new towns is gaining attention. This means that it is difficult to view all older complexes as having the same conditions when demand for new apartments is strong.
In September, the government announced a target of beginning construction on 6 ten-thousand 3000 units in the 1st-generation new towns by 2030 through the redevelopment project for aging planned cities. This is a target and plan, and is not an announcement confirming the completion or occupancy of individual complex projects. The price ceiling system for new housing, interest rates, construction material costs, and labor costs were also mentioned as variables affecting redevelopment projects.
The point to watch in this trend is which complexes can be converted into new housing, and when, rather than the name “1st-generation new towns.” Established living environments already exist, but the timetable for reconstruction expectations and actually habitable new apartments is not the same.
References
Tags #1stGenerationNewTowns #Bundang #Ilsan #Pyeongchon #Jungdong #Sanbon #1stGenerationNewTownReconstruction #AgingPlannedCities #CapitalAreaApartments #SeoulHomePrices #GyeonggiApartments #NewApartments #Reconstruction #ResidentialMobility