[Edaily Reporter KIM HYUNG-HWAN ] While the Eunma Apartments and Jamsil 5th Complex both received project implementation approval last July, the reactions of their residents have been mixed. This is because residents of the Eunma Apartments must pay hundreds of millions of won in contributions, whereas those of the Jamsil 5th Complex will receive refunds of the same amount. Observers note that this situation reaffirms the importance of “land ownership shares” and “floor area ratio.”

According to the urban renewal industry on the 25th, the Eunma Apartments reconstruction association announced in its “Guidance on Unit Allocation Applications for Association Members” that members holding an 84-square-meter exclusive-use unit would have to pay an additional 430.21 million won if they choose a newly constructed 84-square-meter unit. This is approximately 250 million won more than the 180 million won calculated during the preliminary survey last September. Furthermore, if an owner of an 84-square-meter unit chooses a 143-square-meter unit, the contribution amount reaches 9.0266 billion won.

In contrast, the situation at Jamsil Complex 5 is entirely different. According to the “Guidance on Unit Allocation Applications for Association Members” for Jamsil Complex 5, owners of an 82-square-meter unit who select an 84-square-meter unit will receive a refund of 860.54 million won. Those who choose a 107-square-meter unit must pay an additional 188.72 million won, while those selecting a 126-square-meter unit must pay an additional 866.62 million won.

Both complexes are considered representative examples of aging large-scale housing complexes symbolizing redevelopment in the Gangnam area. Eunma Apartments, completed in 1979, and Jamsil 5th Complex, completed in 1978, are similar in scale, comprising 4,424 and 3,930 households, respectively. Both complexes have been pursuing redevelopment since the late 1990s, but the projects were delayed for over 20 years due to various issues, including concerns over project viability and conflicts among residents. Subsequently, the projects gained momentum following the relaxation of redevelopment regulations, and both received project implementation approval around the same time last July.

However, the primary reasons cited for this disparity in contribution amounts are “land ownership shares” and “floor area ratio.” The land share for an 84-square-meter unit at Eunma Apartments is approximately 53.9 square meters, whereas the land share for an 82-square-meter unit at Jamsil 5th Complex is approximately 80 square meters—1.5 times larger. Although the officially assessed land value per unit area is higher at Eunma Apartments, when considering the total officially assessed land value per household, Jamsil Jugong 5th Complex is approximately 37% higher. The assessed land value per square meter (㎡) for Eunma Apartments is 24.42 million won, bringing the total assessed land value for the land share to 1.31624 billion won; however, for Jamsil Jugong Complex No. 5 (82 ㎡ of exclusive use area), the assessed land value is 20.10 million won per ㎡, totaling 1.608 billion won.

The floor area ratio (FAR) for Eunma Apartments will increase from 204% to 331%, while that for Jamsil Complex 5 will rise from 138% to 322%. Given Jamsil Complex 5’s existing low FAR, the structure inherently necessitates a larger volume of units for general sale. Estimated public sales for Eunma Apartments are 340 units, generating approximately 1.27 trillion won in revenue, while Jamsil Complex 5 is projected to have 1,534 units, generating 4.47 trillion won in revenue.

Furthermore, there is a difference in the burden of public housing supply. While Eunma Apartments benefited from a special provision for floor area ratios in station-adjacent areas—raising its FAR from 300% to approximately 332%—it must allocate a significant portion of the additional housing units secured for public rental and public sale. According to the project implementation approval, public housing at Eunma comprises 1,104 units, accounting for 18.9% of the total. In contrast, the Jamsil 5 Complex is a mixed-use development spanning both Type 3 General Residential and Quasi-Residential zones; of the total 6,411 units, 831 (13.0%) are rental housing.

The urban renewal industry explained that these two complexes illustrate the importance of land ownership structure when investing in redevelopment projects. An industry official stated, “The lower the floor area ratio and the larger the land share per household, the greater the potential to cover project costs through general sales. Therefore, in redevelopment projects, one must consider not only the price of the existing apartments but also the land shares and the potential floor area ratio for development.”