Sadang's 'Ugeuksin' complex clears safety assessment, paving way for 5,000-unit Posco town near Bangbae

Industry attention is turning to the Ugeuksin apartment complex — comprising the Useong 2nd and 3rd phases and Geukdong — in Sadang-dong, Dongjak-gu, widely regarded as one of Seoul's three major remodeling projects, as it nears clearance of its safety assessment.

According to industry sources Tuesday, the Useong 2nd, Useong 3rd and Geukdong apartment complexes recently completed the remodeling safety assessment process and are awaiting official notification of results from the Dongjak-gu office. The Ugeuksin association, which received approval to establish in June 2023, is pursuing a project to consolidate the three complexes — Geukdong (1,550 units), Useong 2nd (1,080 units) and Useong 3rd (855 units), totaling 3,485 units — into a single complex of 4,000 units through vertical, horizontal and separate-block extensions.

"The safety rating is a critical factor in determining whether vertical extension is possible," an industry official said. "If the plan proceeds as intended, the number of units in a single complex would grow by the equivalent of a small-to-mid-size development, so a meaningful new housing supply effect can also be expected."

Industry observers believe that if all three extension types are approved, the consolidated complex could secure more than 500 units for general pre-sale — a significant gain over what would otherwise be available. Remodeling projects are generally constrained by structural limitations that cap additional units compared with full reconstruction. A well-known example is Ichon Ruel in Ichon-dong, Yongsan-gu, where the Hyundai apartment complex was remodeled from eight buildings of up to 15 stories with 653 units into a 750-unit development of up to 25 stories, yielding just 88 units for general pre-sale.

Asking prices at Ugeuksin have risen noticeably as the remodeling project has taken shape. Remodeling complexes, unlike reconstruction projects, carry no restrictions on the transfer of association membership rights, making transactions relatively unrestricted — a factor that appears to have contributed to the price gains.

A unit at Geukdong with an exclusive use area of 84 square meters set a new high in May, changing hands at 1.63 billion won ($1.1 million) on the 12th floor. Current asking prices stand at 1.6 billion won or more — nearly 300 million won above the actual transaction price recorded a year ago in July, when the same unit type traded at 1.3 billion won. For the 51-square-meter type, after a new high of 1.49 billion won was recorded on the 8th floor on May 28, the lowest current asking price has climbed above 1.5 billion won — the threshold for a 600 million won mortgage — dampening follow-on buying interest.

The Sadang Useong 2nd complex has seen a similar trend. Its 59-square-meter type first crossed the 1.5 billion won mark in August last year, trading at 1.52 billion won on the 7th floor, and set a new high of 1.68 billion won in May — less than a year later. The 118-square-meter type — the most numerous in the complex at 300 units — changed hands at 2.09 billion won on the 14th floor on May 7, with current asking prices ranging from 2 billion won to 2.3 billion won.

Once the safety assessment results are released, the association plans to move immediately into preparations for Seoul city pre-consultation and an urban planning review in the second half of the year, with a structural safety review and Seoul city architectural review scheduled for next year.

Meanwhile, the nearby Shindonga 4th complex (912 units) — which formed a separate association because it sits on a different parcel — is also accelerating its remodeling project, further lifting development expectations across the Sadang-dong area. The Shindonga 4th remodeling association has completed its site briefing and is preparing for a general meeting this autumn to select a contractor. Industry sources expect Posco E&C to proceed with a negotiated contract following a re-bid, in which case Ugeuksin and Shindonga 4th together are expected to form a roughly 5,000-unit "Posco town."