High Demand for Rentals in Nowon’s 'Mimi Sam' Amid Reconstruction Hopes

“Currently, there are hardly any rental listings. A property listed for 310 million won will be contracted quickly,” said a real estate agent near 'Mimi Sam' in Wolgye-dong, Nowon District, when asked about the recent rental market conditions on June 25. He noted that “there are almost no rental listings under 300 million won for 20-pyeong units,” adding that inquiries from newlyweds and families with young children in their 30s have been steady. 'Mimi Sam' refers to a group of apartments including Wolgye Miseong, Wolgye Miryung, and Wolgye Samho 3rd. Completed in 1986, it consists of 32 buildings with a total of 3,930 units, making it a key site for redevelopment in northeastern Seoul. Upon visiting the complex, signs of aging typical of older buildings were evident in the corridor-style apartments, which rise up to 14 stories. However, children were playing in the playground, and residents were seen pushing strollers. Nearby, a banner from the Wolgye City Housing Reconstruction Committee announced a 75.8% agreement rate for redevelopment. The recent attention on 'Mimi Sam' stems from a combination of rental shortages and optimism about redevelopment. As rental listings decrease and prices rise, demand is increasing for long-term living while awaiting redevelopment. This trend, referred to as 'body finance,' involves residents living in older apartments while waiting for redevelopment. A nearby real estate agent remarked, “Many of the recent inquiries are from people in their 30s looking to live in the area. The financial burden of moving to new constructions in northern Seoul is significant, and the prospect of a large-scale redevelopment in Seoul at this price point continues to attract interest.” Rental prices are also on the rise. According to the Ministry of Land, Infrastructure and Transport's real transaction disclosure system, a 59-square-meter unit in 'Mimi Sam' was reported to have rented for 320 million won on June 10, setting a new record. A newly renovated unit was listed for 350 million won. Sales prices are also hovering around 1 billion won. This year, there have been a total of 54 transactions in 'Mimi Sam.' A 59-square-meter unit sold for approximately 980 million won in January but reached a peak of 1.1 billion won in February. In June, units sold for 1.07 billion won and 1.06 billion won on the 13th, maintaining a price range in the 1 billion won bracket. The buying power of those in their 30s is also noticeable. According to KB Kookmin Bank, which analyzed buyers using its apartment purchase loans, Wolgye City Housing ranked fifth among the most purchased apartment complexes by buyers in their 30s in Seoul. This is attributed to the relatively lower entry price and the anticipation of redevelopment. The redevelopment of 'Mimi Sam' is being pursued as the 'Wolgye City High-Rise Apartment Redevelopment Project.' According to the recent designation of the maintenance area and establishment of the maintenance plan by Nowon District, 'Mimi Sam' is set to be redeveloped from its current 3,930 units to 6,103 units. The new development will feature a maximum of 50 stories above ground and four basement levels, with approximately 1,700 units expected for general sale. However, it will take time before residents can move in. Procedures such as establishing a cooperative, obtaining project approval, management disposition approval, relocation, and demolition still remain. A nearby real estate agent estimated that it could take about 5 to 6 years to reach management disposition approval and around 10 years for actual occupancy. Nevertheless, he noted that “the ability to live in Seoul at this price while waiting for redevelopment continues to sustain demand.”



* This article has been translated by AI.

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