Table of Contents
- Large-scale mixed-use development in Geoje-dong, Yeonje-gu: The key is location and brand
- Overview of the project and current status
- Controversy over member contributions and pricing issues
- Causes of construction cost increase and market variables
- Geoje 2 Housing Association: Between risks and opportunities
- Environmental impact assessment report for the construction of the mixed-use facility at Geoje-dong Sports Complex Station 1
Large-scale mixed-use development in Geoje-dong, Yeonje-gu: The key is location and brand
The 'Geoje 2 Housing Association' project is being actively carried out under the name 'POSCO The Sharp Asiad Stadium' in the area of 1054 Geoje-dong, Yeonje-gu, Busan. This project is located just a 30-second walk from Exit 1 of the Sports Complex Station on Busan Metro Line 3, featuring excellent accessibility.
The project site is designed to have 5 underground floors and 48 above-ground floors, with apartment sizes ranging from 59㎡ to 118㎡. This mixed-use residential complex consists of a total of 989 units and boasts a very favorable surrounding environment.
Its proximity to Busan Sports Complex, Busan District Court, Prosecutor's Office, and City Hall provides high convenience for residents, and it is only two stations away from Yeonsan Station, making it a 'complete location' rarely seen in downtown Busan. These factors are expected to be major attractions for both investors and residents.
Overview of the project and current status
Currently, the project has completed the review by the construction committee and is in the process of obtaining project plan approval. POSCO E&C is expected to be the construction company, with the groundbreaking scheduled for the second half of 2026 and occupancy planned between 2029 and 2030.
The name of this project is the construction of the mixed-use facility at Geoje-dong Sports Complex Station 1, and the executing body is the Geoje 2 Housing Association. POSCO E&C, which is expected to take on the construction, has already completed the signing of an MOU.
The project's floor area ratio is set at 672%, and it will consist of a total of 989 units. The landscaping area is 3,850㎡, accounting for 21.3% of the total area, with various welfare facilities such as a daycare center, senior center, small library, and care center planned to be provided.
This complex, equipped with various facilities for residents’ convenience, will occupy a total area of 3,104㎡. Plans are in place for various community spaces such as an indoor gym, daycare center, small library, community care center, and mom's station. Additionally, essential infrastructure for residents and the local community, such as roads, security lights, waste storage facilities, and high-speed communication infrastructure, will be fully provided.
This complex is located just a 30-second walk from Exit 1 of the Busan Metro Line 3 Sports Complex Station and is only two stations away from Yeonsan Station. With excellent accessibility to the express bus terminal and major roads such as Hae-mat Road and Geoje Road, it boasts an optimal location for quick movement to various regions in downtown Busan.
Controversy over member contributions and pricing issues
In August 2024, the Geoje 2 Housing Association held an extraordinary general meeting and decided to impose additional contributions on the members. Accordingly, the amounts set for the exclusive area are ▲59㎡: 258.53 million won, ▲74㎡: 321.55 million won, ▲84㎡A: 363.11 million won, ▲84㎡B: 360.20 million won.
However, some members are expressing dissatisfaction as the amount they have to bear is higher than the general sale price. According to industry sources, the general sale price is expected to be about 26 million won per pyeong, and for the 84㎡ unit, it could reach about 884 million won. However, some third-round members will face a burden exceeding 960 million won when combining existing contributions and additional contributions.
Member A stated, “As a member, I thought it would be cheaper, but if it's more expensive than general sales, the necessity of the association is questionable.” Member B expressed, “It would have been better to sell at 30 million won per pyeong.”
When compared to neighboring complexes, the sale price of the Geoje 2 Housing Association is somewhat higher than the market prices of Rey County and Ssangyong The Platinum Geoje Asiad. Nonetheless, considering the prime location near transit and the POSCO brand, as well as the large community facilities, there remains an assessment that it still holds competitiveness.
In this context, members are feeling anxious about future developments and are paying attention to how the association's decisions will impact the situation. Concerns are growing over the potential repercussions of market movements and the association's responses on the real estate market in the future.
Causes of construction cost increase and market variables
The causes of the surge in construction costs can be divided into two. First, the delay in selecting a new construction company due to the workout of Taeyoung Construction has accumulated financial costs. Secondly, the project site has been designated as a high-density development area near the subway, resulting in an increase in the floor area ratio, which has greatly raised the burden of construction costs.
Generally, a higher floor area ratio improves project profitability, but due to the current stagnation of the real estate market in Busan, there is a problem of not being able to set the general sale price too high. The unsold inventory in Busan amounts to about 5,000 units; while Yeonje-gu has relatively fewer unsold units, overall demand in the region is decreasing, increasing the risk of sale.
The association is currently working swiftly on selecting a construction company and adjusting the sale price, and they are pushing forward with the project through the resolution of additional contributions. There are hopes that these efforts will positively impact the recovery of the Busan real estate market.
Geoje 2 Housing Association: Between risks and opportunities
The 'POSCO The Sharp Asiad Stadium' project is gaining attention as a large-scale development based on solid location and brand recognition. However, issues regarding member contributions, rising construction costs, and pricing remain significant challenges that require transparent management and reasonable adjustments from the association.
In the process of selecting a construction company and obtaining project approval, how the actual sale price is determined will greatly influence whether this project can establish itself as a standard for new residential complexes in Busan.
The following are related contents of the environmental impact assessment report for the construction of the mixed-use facility at Geoje-dong Sports Complex Station 1.
Environmental impact assessment report for the construction of the mixed-use facility at Geoje-dong Sports Complex Station 1
Chapter 2 Overview of the project
2.1 Background and purpose of the project
○ The project site is located in the area of 1054 Geoje-dong, Yeonje-gu, Busan, where existing housing and buildings are deteriorating, resulting in a poor residential environment.
○ Therefore, through the housing construction project, the multifaceted land use of the project site, including residential and commercial purposes, aims to restore urban functionality and establish a comprehensive and three-dimensional plan for buildings to create a favorable mixed-use space.
2.2 Basis for conducting the environmental impact assessment
This project is subject to the environmental impact assessment as per Article 2, Paragraph 1 of the 'Busan Metropolitan City Environmental Impact Assessment Ordinance' [Annex 1].
