Announcement of the Business Implementation Plan Approval for the Urban Housing Improvement Project around Jeongnam Apartment
- The 5th plan for Jeongnam Mansion, Hanwha, located in the area of Deokcheon-dong, Buk-gu.
The urban housing improvement project around Jeongnam Apartment in Deokcheon-dong, Buk-gu, Busan, is facing difficulties in selecting a construction company.
This project plans to build two blocks, from basement level 3 to 19 stories high, totaling 133 households, and received approval for the business execution plan on February 28, 2025.
Due to the recent recession in the real estate market and rising construction costs, the selection of a construction company is being delayed. In January 2022, the union selected Hanwha Construction as the preferred negotiator through a board meeting and planned to develop the brand 'Hanwha Forena Busan Deokcheon 5th'.
However, due to the decline in the real estate market and rising construction costs, they are considering replacing the construction company. Such situations frequently occur in small-scale improvement projects, and it is not an exception even when selecting large construction companies as contractors. Therefore, careful decisions will be necessary according to future changes in the situation.
The small-scale reconstruction project of Deokcheon Ildong Park Mansion and the urban housing improvement project for Deokcheon-dong 365-26 are also in a similar situation. In particular, the urban housing area of Deokcheon-dong 365-26 passed the 12th building committee review of Busan City in 2023.
On February 5, 2025, the union announced a re-bidding notice for the selection of a construction company. However, Daebang Construction attended the first site explanation meeting alone, resulting in a failure to select a contractor. Consequently, the union is planning to issue a second bidding announcement and hold a site explanation meeting on February 13.
The 'Forena Town' development plan in the Deokcheon-dong area is currently influenced by various factors. Hanwha Construction's 'Forena Busan Deokcheon 1st' and 'Forena Busan Deokcheon 2nd' successfully completed their sales, with 636 units and 795 units, respectively, and the average transaction price is approximately 19.62 million won per 3.3㎡.
However, 'Forena Busan Deokcheon 3rd' is being conducted under a deferred sales method, with the sale price set between 477.9 million won and 538.7 million won for the 59㎡ standard. This is relatively higher than the market price of nearby complexes. Additionally, there is a condition requiring the down payment to be paid four months after signing the contract, which raises concerns about the financial burden on the pre-purchasers.
These elements significantly impact the real estate market in Deokcheon-dong, and attention needs to be paid to future housing demand and price volatility.
There are delays in selecting a construction company for the urban housing improvement project around Jeongnam Apartment. This could disrupt the development plan for 'Forena Town' in the Deokcheon-dong area. However, if the real estate market recovers over time and construction costs stabilize, the project is likely to regain momentum. Residents and the union are closely monitoring this situation and continuously striving for the successful advancement of the project.
Announcement No. 2025-16 of the Busan Metropolitan City Buk-gu
Announcement of the Business Implementation Plan Approval for the Urban Housing Improvement Project around Jeongnam Apartment
For the “Urban Housing Improvement Project around Jeongnam Apartment” located at Deokcheon-dong 365-6 and 7 other parcels in Buk-gu, Busan, the business implementation plan (including management and disposal plan) has been approved in accordance with Article 29 of the Special Act on Empty Houses and Small-Scale Housing Improvement, and this is announced according to Article 10 of the enforcement regulations of the same law.
March 5, 2025
Mayor of Buk-gu, Busan
1. Type and Name of Project
a. Type: Urban Housing Improvement Project
b. Name: Urban Housing Improvement Project around Jeongnam Apartment
2. Location and Area of Business Implementation District
a. Location: Deokcheon-dong 365-6 and 7 other parcels, Buk-gu, Busan
b. Area: 4,682.6㎡
3. Name and Address of the Business Implementer
a. Name: Jeongnam Apartment Urban Housing Improvement Project Union (Chairman Seong Gi-hong)
b. Address: 3rd floor, 122 Manduk-daero, Buk-gu, Busan (Deokcheon-dong)
4. Implementation Period of the Project
Within 60 months from the date of business approval
5. Date of Business Plan Approval
February 28, 2025
6. Specification of Land or Building to be Taken or Used and Specification of Rights other than Ownership
Not applicable
7. Specifications regarding the construction plan such as site area, building coverage ratio, floor area ratio, height, purpose, etc.
| Category | Content | Category | Content |
| Site Area | 4,551.4㎡ | Building Area | 991.7483㎡ |
| Building Coverage Ratio | 21.79% | Total Floor Area | 16,882.8139㎡ |
| Floor Area Ratio | 246.5% | Max Height | 54.9m |
| Purpose | Multi-family housing (apartments), subsidiary facilities | Total Floors | 3 basement levels, 14-19 above |
| Number of Blocks | 2 blocks | Number of Units | 133 units |
8. Scale of Housing and Housing Construction Plan
| Supply Type | Number of Blocks | Number of Units | 74.8221㎡ | 59.9945㎡ | 48.8646㎡ |
| Total | 2 | 133 | 35 | 62 | 36 |
| Sale | 2 | 133 | 35 | 62 | 36 |
| Rental | - | - | - | - | - |
9. Scale of Sale or Reserved Land and Sales Plan
| Supply Type | Total | 74.8221㎡ | 59.9945㎡ | 48.8646㎡ | Neighborhood Living Facilities (Area m²/Number of units) |
| Total | 133 | 35 | 62 | 36 | 95.77 / 2 |
| Union Members | 88 | 25 | 56 | 7 | 66.12 / 1 |
| Reserved Land | 1 | 0 | 0 | 1 | - |
| General | 44 | 10 | 6 | 28 | 29.65 / 1 |
10. Matters regarding the Attribution of Maintenance Infrastructure
| Category | Facility Name | Location | Scale | Remarks |
| New Installation | Road | Deokcheon-dong 365-4 | Width 1~5m, Length 50m, Area 131.2㎡ | Attributable free of charge to the management agency (Buk-gu Office) |
Category
Announcement
Agency Classification
District and County
Agency
Buk-gu
Announcement Number
No. 2025-16
Title
Announcement of the Business Implementation Plan Approval for the Urban Housing Improvement Project around Jeongnam Apartment
Date
2025-03-05
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