A "major repair" approach that fully renovates aging apartments while keeping the existing structural frame is emerging as a new redevelopment model. Unlike reconstruction or vertical-extension remodeling, it can skip complex permitting processes and add a major builder's premium brand, drawing the attention of apartment complexes.
According to the redevelopment industry Thursday, some complexes that had been considering vertical-extension remodeling are visibly shifting toward the major repair approach. The key reason for the switch is shortening the construction period.
Seocho Raemian in Seoul's Seocho district is a complex where a 2022 attempt at vertical-extension remodeling stalled. The breakthrough was Samsung C&T's (028260) Next Remodeling partnership. After signing the agreement last year, the complex completed the selection of design and redevelopment firms last month. On Sept. 5, Samsung C&T and the preparatory committee plan to hold a joint residents' briefing to unveil the concept plan, after which they will begin collecting consent forms. Choi Hyuk-jun, head of the preparatory committee, explained, "With a floor area ratio reaching 320%, reconstruction itself is realistically difficult. The decisive factor was that major repair has a simple permitting process that can noticeably shorten the overall project period."
Yeoksam Kumho Eowoolim in Gangnam district is also considering a switch to major repair for the same reason. A preparatory committee official said, "The consent rate for forming the association is currently around 50%. Many residents say they will decide after watching the Next Remodeling briefing scheduled for July or August, so the mood is positive."
Major builders have also picked up the pace. Samsung C&T signed Next Remodeling partnerships with 12 complexes nationwide in succession last year, and in March this year was selected as the preferred bidder for the Banpo Prugio remodeling in Seocho district, expanding its reach. Choi Moon-young, head of the Banpo Prugio association, said, "In an atmosphere where new construction draws attention, we chose a method that can lower the cost burden while pushing the project forward quickly," adding that the selection of a construction company is currently underway.
Hyundai E&C (000720) selected Samsung Hillstate Unit 2 in Gangnam district as the first site for its "The New House" brand and delivered a project proposal. On June 13, it held a residents' briefing at Lotte Castle Classic in Seocho district, accelerating the expansion of its order-winning territory.
Experts also note the structural limitations of major repair. Yoon Su-min, real estate specialist at NH NongHyup Bank, said, "Construction can proceed while residents continue living there, and the permitting process is simple, so there is a clear advantage in terms of project speed." However, he pointed out, "Because no general sale revenue is generated, the entire project cost must be shared by residents, so the possibility that opinions among residents will diverge over the actual benefits cannot be ruled out."
