Gov`t Decision on Euma Apartment Sparks Mixed Reactions

The government decision not to approve the reconstruction of Eunma Apartment Complex located in Daechi-dong, Gangnam is drawing mixed reactions from residents. Those who have lived there for more than 10 years appear disappointed. ˝I should have sold out mine when the price was right.˝

Hit hard by the decision were those who moved into the complex early this year on the hopes of a speculation boom. ˝I paid a premium to get in and it has now gone up in smoke.˝

Even among real estate speculators, reactions seem to vary depending on whether they are professional or novices. `Professionals` either already left the complex after making a considerable margin or take a long-term approach.

`Novices` who pinned high hopes on the government approval this year are resenting at the decision, saying they lost a lot.

˝I sold this place last year for 320 million won and later managed to buy it back after borrowing some money,˝ said Han, a 43-year-old resident who said she paid about 400 million on to buy this place back.

The most severe damage has been done to `novice` speculators who were after short-term margins.

˝I thought I could make a lot once the reconstruction starts, but now I am worried about losing money,˝ said 63-year-old Lee, who bought three apartments here and is currently renting them.˝ “I won`t be able to sell them since prices will nosedive.˝

˝I thought of selling them when prices rose up to 500 million, but I didn`t because they said the prices would reach up to 1 billion,˝ a 47-year-old woman who has two apartments regretted her decision.

Real estate agencies also feel bitter. ˝I thought there would be a lot of selling and buying after an approval,˝ said a real estate agency in the area. ˝For some time, I don`t think there will be deals.˝

On the contrary, some others are welcoming the decision. They are the so-called `Ggalse,` people supposed to live in apartments temporarily until reconstruction starts, and merchants in the neighborhood.

˝Reconstruction will take five to six years given the scale of this complex, and during that period there will hardly be commercial activities around,˝ said a storeowner. ˝Once the revised urban development law takes effect next year, we will be seeing reconstruction some 10 years later.˝

˝Many stores are moving to change signboards,˝ he went on to say. ˝It seems that they start investing in facilities, which has been put on hold due to the reconstruction speculation.˝

˝For us, it is good news since we will be able to stay here long at low rents,˝ said Ahn who agreed with the owner to leave one year after a reconstruction plan is unveiled.

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