Bundang apartments hit record prices ahead of second-round reconstruction zone announcement

The reconstruction clock in Bundang new town in Seongnam, Gyeonggi Province is ticking faster again. Record-high transactions at complexes selected for the second round of special maintenance zones emerged ahead of the official announcement, with reconstruction expectations already baked into prices. As the first and second rounds of selections wrap up, market attention is shifting to the next candidates — including Hyojachon and Imaechon — that have yet to be included in any special maintenance zone.

Seongnam city selected five zones — Imaechon 1, Sibeom Danji 1, Park Town, Pureun Maeul and Hansol Maeul 2 — totaling 13,429 units as this year's special maintenance zone designation targets on Tuesday. According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, record-high deals were confirmed at these complexes in August and September. A 134-square-meter unit on the 14th floor of Sibeom Hanyang in Seohyeon-dong sold for 2.68 billion won ($1.98 million) on Aug. 21. Compared with a same-sized unit on the 10th floor that sold for 2.3 billion won in September last year, the price rose 380 million won in roughly a year.

Sibeom Hanyang is pursuing integrated reconstruction under the name "Sibeom 1" together with Sibeom Samsung Hansin. It had been considered a strong candidate during the first pilot district selection last year but was left off the final list, only to emerge as a leading contender for this second round.

A 134-square-meter unit on the sixth floor of Park Town Daelim in Sunaedong sold for 2.6 billion won on Sept. 5, setting a new record high. That is 310 million won above the 2.29 billion won fetched by a same-sized unit on the 15th floor in August last year. A 134-square-meter unit on the ninth floor of Hansol Maeul Cheonggu in Jeongja-dong also sold for 2.15 billion won on Sept. 14, up 320 million won from the 1.83 billion won recorded for a 10th-floor unit in September last year.

A 59-square-meter unit on the second floor of Pureun Maeul KGM in Sunaedong sold for 1.575 billion won on Sept. 2, also a record high. That is 405 million won above the 1.17 billion won paid for the same second-floor unit in September last year. All of these record transactions were concluded before Seongnam city announced the second special maintenance zone selections on Tuesday.

The head of a licensed real estate agency in Seohyeon-dong, Bundang-gu, said that aside from Sibeom 1 — which had been widely expected to make the cut — it was difficult to predict which complexes would be included. "With 50 zones having applied, there were forecasts that up to around 10 could be selected, but in the end only five made it, leaving many complexes disappointed," the agent said.

The criteria for selecting Bundang reconstruction sites changed once between the first and second rounds. Seongnam city launched a pilot district competition in June 2024 and in November of that year designated four zones totaling 12,055 units as first-round pilot districts: Yangji Maeul, Saetbyeol Maeul, Sibeom Danji Hyundai-Woosung and Jangan Town Geongyeong, and Mongnyeon Maeul.

The government subsequently introduced a resident-proposal system for follow-up redevelopment in first-generation new towns through its Sept. 7 housing supply measures and follow-up steps last year, shifting the process away from separate public competitions toward a model in which residents directly submit special maintenance plans. Seongnam city accordingly accepted special maintenance zone designation proposals and maintenance plans in July this year, received the full submissions last month and selected five zones as second-round candidates.

The five selected zones are expected to be formally designated and announced as special maintenance zones in December, after going through public review, city council consultation, coordination with relevant agencies and Gyeonggi Province, and deliberation by the landscape and urban planning committees.

The complexes selected as first-round pilot districts are also advancing through subsequent procedures. Yangji Maeul, Sibeom Danji Hyundai-Woosung, Saetbyeol Maeul and Mongnyeon Maeul have all completed the project operator designation process this year. At the time of the pilot district selection, apartment zones including Sibeom Danji Hyundai-Woosung opted for a trust-based approach to accelerate the project, while Mongnyeon Maeul chose a public-sector model involving Korea Land and Housing Corporation (LH).

With first-round pilot districts moving into follow-on stages such as project operator designation and the second-round candidates now decided, market attention is turning to complexes that have yet to be selected. Among the most prominent are Hyojachon Hyundai, Dong-A, Imgwang and Samhwan in Seohyeon-dong; Imaechon Hansin 2, Dongsin, Geumgang 1 and Dongbu Kolon in Imaedong; and Jeongdeun Maeul in Jeongja-dong, all of which are pursuing integrated reconstruction.

Hyojachon Hyundai, Dong-A, Imgwang and Samhwan are pursuing integrated reconstruction of 2,722 units across four complexes. The preparatory committee presented residents in February with a plan to raise the floor-area ratio from the current 183 percent to up to 350 percent, rebuilding to a maximum of 49 stories and 4,884 units. The group has also signed a cooperation agreement with Korea Investment Real Estate Trust as part of its preliminary groundwork.

Kim Je-gyeong, director of Toomi Real Estate Consulting, said Bundang stands out among first-generation new town reconstruction projects for its relatively favorable land share per unit and strong location, giving it comparatively higher project viability. "Given that land prices are already high, there is a possibility that future general pre-sale prices will also be set at elevated levels," he said.

Kim added that even Yangji Maeul — selected as a first-round pilot district in November 2024 — has only just completed its project operator designation, meaning that even if one buys in now, actual move-in would take at least around 10 years. "For second-round and later complexes, the project schedule could be pushed back further, and residents may need to look 15 to 20 years ahead before move-in becomes realistic," he said.