Seoul Fast-Tracks Eunma Reconstruction as Gangnam Standard Model

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1. Eunma Opens the 'Reconstruction Fast Track'... To Become Gangnam Standard Model

- Key Summary: The Seoul city government said it will use the Eunma Apartment project implementation plan approval case as a standard model for Gangnam reconstruction. Earlier, Jamsil Jugong Complex 5 also received project implementation plan approval on the 1st, and the Seoul city government plans to use the two complexes as leading projects to spread reconstruction speed to sites such as Apgujeong Hyundai Apartment. For the first time in a private maintenance project, a station-area floor area ratio special exception (331.9%) was applied to Eunma Apartment, supplying 5,850 units including 909 public rental units and 195 public sale units. The Seoul city government has selected 85 zones and 85,000 units that can break ground by 2028 as core supply strategy projects, managing them intensively through progress promotion meetings.

2. Eunma Reconstruction, Dragged Out 25 Years... First Shovel as Early as 2028

- Key Summary: Eunma Apartment in Daechi-dong received project implementation plan approval, clearing the "80% mark" of the reconstruction process. This comes 25 years after the launch of its reconstruction preparation committee in 2001, and the Seoul city government processed it in just seven months from maintenance plan revision notice to approval by applying "Rapid Integrated Planning Season 2." After reconstruction, the scale will expand from the existing 4,424 units in 28 buildings of 14 stories to 5,850 units in 29 buildings of up to 49 stories above ground. Groundbreaking is scheduled as early as 2028, but with the existing floor area ratio being high at 204%, general sale volume is small, and variables remain at the management disposal stage, such as increased member contributions due to rising construction costs.

3. Dongtan Regulation Spillover?... Gwonseon and Byeongjeom See Asking Prices Jump 70 Million Won in a Day

- Key Summary: After Dongtan-gu in Hwaseong, Giheung-gu in Yongin, and Guri were designated regulated areas, asking prices for apartments in adjacent non-regulated areas are rapidly rising. The asking price for the 84-square-meter unit of "Suwon Hi-Ville The First Complex 2" in Gwonseon-gu, Suwon, rose 70 million won in a single day on the day of the regulation, and in the Byeongjeom-gu area of Hwaseong, listings have decreased and prices of remaining properties have risen sharply. According to the Korea Real Estate Board's weekly apartment price trends for the fifth week of June, Suwon Gwonseon-gu rose 0.25% from the previous week, while Anyang Manan-gu and Gunpo each rose 0.25%. Meanwhile, Seoul apartment sale prices also rose 0.27% from the previous week, maintaining an upward trend, and this year's cumulative jeonse (a Korean lease system requiring a large lump-sum deposit instead of monthly rent) increase in Seoul stands at 5.10%, approaching the sale price increase rate (5.11%).

4. "Korea's Property Tax vs. GDP Double the OECD Average... Lower Transaction Taxes, Raise Holding Taxes"

- Key Summary: The OECD recommended reforming Korea's property tax structure in its "2026 Korea Economic Survey." It pointed out that the share of holding taxes in Korea's total property tax revenue is 29.4%, about half the OECD average (56%), while the transaction tax share reaches 50.4%, indicating a serious structural imbalance. The OECD stressed that "a revenue-neutral shift that reduces transaction taxes and increases holding taxes will improve residential mobility and labor market efficiency and ease housing market friction." However, it added that since property taxes already account for 11.7% of Korea's total tax revenue, more than twice the OECD average (5.1%), expanding holding taxes should be designed carefully considering the special characteristics of Korea's housing market.

5. Administrative Mutual Aid Association Forms 387.8 Billion Won European Real Estate SMA Through U.S. Nuveen

- Key Summary: The Public Officials Benefit Association (POBA) entrusted funds to Nuveen Real Estate, a real estate investment management firm under the Teachers Insurance and Annuity Association (TIAA), to form a 220 million euro (about 387.8 billion won) Separate Managed Account (SMA). Mirae Asset Global Investments participates as a co-investor and domestic asset manager, and Nuveen Real Estate handles the entire process from discovering Core-Plus (a strategy adding some risk to core assets) real estate equity investment opportunities across Europe to asset management. As its first investment, it acquired "Bravo!", a private student housing (PBSA) portfolio spanning seven university cities in Spain, with a total of 3,323 beds, evaluated as Europe's largest private student housing deal this year.

6. SH Pushes to Expand Generation-Tailored Housing Supply and Urban Development

- Key Summary: Seoul Housing & Communities Corporation (SH) announced plans to expand generation-tailored housing supply and urban development projects in line with the direction of the 9th popularly elected Seoul city administration. SH aims to support "The Dream House+," an integrated public housing supply system for youth and university students, and to supply 1,000 senior housing units by 2031 to respond to the super-aged society. In the urban development sector, according to development strategies for Seoul's five major regions, it will push key projects including △the Sewoon district and Yongsan International Business District in the central region, △the Changdong K-Entertainment Town in the northeast region, and △a culture and tourism hub centered on the Sangam Ferris wheel in the northwest region. Meanwhile, it plans to shorten maintenance project periods through expanded validity verification of management disposal plans, contributing to the Seoul city government's goal of breaking ground on 310,000 units by 2031.