Business · Economy · 10 hrs ago
Rising costs push up payments for Seoul redevelopment owners
Owners in several Seoul apartment redevelopment projects are being told to expect much higher extra payments to receive homes in the rebuilt complexes.
At Eunma apartment in Gangnam, the estimated payment for an owner choosing the same-size home rose from 180 million won to 430 million won in a year.
Similar increases have been reported in areas including Apgujeong, Yeouido and Gaepo.
Construction costs are rising because of more expensive materials and labor, as well as competition to add higher-end designs and facilities.
Longer construction schedules also increase financing costs, while limits on adding homes can make it harder for projects to raise money through sales.
The Korea Institute of Civil Engineering and Building Technology's construction cost index reached 138.74 in August, up 5.98% from a year earlier.
Payments may continue to rise before construction begins, making redevelopment less likely to bring owners a profit.
Additional payments by members of major Seoul redevelopment projects have risen by hundreds of millions of won in a year, driven by higher construction and financing costs.
At Eunma Apartment, the estimated payment for an owner choosing a unit of the same size rose from 180 million won in September last year to 430 million won last month.
Costs have also climbed in projects in Apgujeong, Yeouido and other parts of Seoul.
The construction cost index reached 138.74 in August, up 5.98% from a year earlier.
Experts cited rising material and labor costs, longer construction periods and competition to add premium features as factors behind the increases.
- Who
- Owners in Seoul redevelopment and reconstruction projects.
- What
- Their additional payments have risen sharply.
- When
- Reported on October 12, 2026; some estimates compare costs with those from 2024 or last year.
- Where
- Major redevelopment areas across Seoul, including Gangnam, Apgujeong and Yeouido.
- Why
- Construction and financing costs are rising, while longer project schedules and premium features add to expenses.
This story does not have two clearly opposing sides.
The estimated payment for an Eunma owner choosing a unit of the same size was 180 million won.
The construction cost index reached 138.74, up 5.98% from the same month a year earlier.
The estimated payment for that Eunma unit choice was 430 million won.
The report detailed rising additional payments across Seoul redevelopment projects.
- Eunma, same-size unit choice
- 430 million won estimated payment last month, up from 180 million won in September last year
- Eunma, 84-square-metre owner choosing 143 square metres
- More than 9 billion won estimated payment
- Apgujeong 3
- 541 million won for an 84-square-metre owner choosing the same size
- Yeouido Mokhwa Apartment
- Payment for a 67-square-metre owner choosing 84 square metres rose from about 500 million won in 2024 to 800 million won this year
- Construction cost index
- 138.74 in August, up 5.98% year on year
What people are saying
External factors such as construction cost increases and the gap between sale prices and presale prices will cause additional payments to continue to rise.
Loans are unavailable, while additional payments and taxes are rising, so the burden is heavy.
It is almost meaningless to calculate current estimates.
With the 52-hour workweek and stronger safety standards, construction periods are getting longer and financing costs are increasing.
Sources
Related news
SK chief says Honam chip project can start before power and water arrive
South Korea to create 3 trillion won fund for overseas construction projects
South Korea’s early October exports hit a record, led by chips
Lotte to present mobility businesses at Japan trade event
South Korea central bank chief apologizes over warnings on leveraged ETFs
South Korean ship completes Arctic shipping trial
South Korean chip-cluster stocks rise after SK chief visits planned site
HiteJinro to make Kirin Ichiban beer cans in South Korea
20 outage-prone financial firms spent less than 70% of security budgets
South Korea introduces smartphone checks for counterfeit K-brand products
SK chairman challenges 33% property division in divorce appeal
