One of the serious city problems, the metro police Seoul has is the housing problem. Present time of late 2002, the stock of Seoul's house are 2.24 million houses and the apartment among them takes 66% which is about 2/3. As the apartmenthouse becomes...
One of the serious city problems, the metro police Seoul has is the housing problem. Present time of late 2002, the stock of Seoul's house are 2.24 million houses and the apartment among them takes 66% which is about 2/3. As the apartmenthouse becomes old, it gets the problems of the inconvenience of the living, increase of the maintenance cost and to solve these problems, they have tried reconstruction but, there arouse the side effect such as resources waste. Recently, as government enforces the restriction on the reconstruction, they are search the substitution and there is scored the remodeling as one of the substitution.
Thus, the aim of this study is to analyze to review the status and the problem of the reconstruction and the remodeling business of the old high story apartment which is proceeded in this country to present the enhancement measure and tries to study what elements to consider in making the rational business decision by comparing the reconstruction and the remodeling. This study focus to present the criterion of the choice of reconstruction and the remodeling in accordance with the physical and economic features in the newly rebuild of the apartment and it gets its meaning in building the business model through the basic characters which make possible to specialanalyzation according to the distribution and the modification of the rebuilt house demand in the urban.
In a few years, there will come out the high story apartments in the big sites which was developed at the time of Seoul Olympic of the late 1980, but as the government continues to restrict (report system of house contract, return system of development profit of the reconstruction) the rebuilding market get shrink and at this point remodeling is working as the substitute which is possible with about 30∼50% of the investment cost comparing to the construction cost and with short construction time of about 1∼5 months. So the remodeling has the merit of the short profit earning time.
As the restrictions on the rebuilding forthcoming and when there would be tax support on the remodeling, the remodeling market will in the few years become the core market of the construction market and the remodeling will take effective part of the rebuilding.